Before the tax year ends on December 31st, you should be doing some planning to make sure you are maximizing every option the law allows and to give yourself peace of mind. What should you be doing?
- Immediately schedule an appointment with your accountant, financial planner and estate planning lawyer;
- Organize your tax and financial records;
- If you have an estate plan, check it to make sure it still carries out your wishes (were there any changes in your personal circumstances – was anyone born, did anyone die, did you move to another state, did you get married?);
- If you don’t have an estate plan, organizing your records and scheduling an appointment with an estate planning lawyer are your first steps;
- If you have estate tax issues (and here in New Jersey, they start if you have more than $675,000 in your estate), make gifts to your children (be aware of the “kiddie tax”), family, and friends (limited to $12,000 from you and $12,000 from your spouse to each person, but no limits for educational and medical expenses if paid directly to the providers);
- Make gifts to charity (as much as you want to donate);
- Check the title on your assets – did you re-title your assets as your estate plan requires; did you fund your revocable living trust, if you have one.
