Get a Jump on 2025 Tax Planning
As we move closer to the end of the year, it’s crucial to begin thinking about your tax planning strategy, especially concerning your estate plan. With changes in tax laws and regulations often on the horizon, getting a head start on 2025 tax planning can help you optimize your estate for both tax efficiency and your beneficiaries’ benefit.
The experienced team at Turner Law has extensive knowledge of estate tax laws and has developed a comprehensive understanding of strategies to effectively manage all types of assets. They are well-equipped to guide you through the complexities of estate planning and tax implications.
Here’s how you can prepare your estate plan for the upcoming year in Atlanta, GA.
Understanding Georgia and Federal Estate Taxes
Georgia does not impose a state estate tax, which is beneficial for residents looking to maximize their inheritance. However, federal estate tax laws can have significant implications, particularly for estates valued over the exemption limit. For 2024, the federal estate tax exemption amount is set at $13.61 million for individuals. Couples making joint gifts can double that amount. This amount increases to 13,990,000 in 2025. Planning your estate with this threshold in mind is critical, especially if you anticipate your estate growing in value or if you are planning to make substantial gifts.
Key Steps for 2025 Tax Planning
Attorney Robert Turner can review your tax planning and estate plan and recommend steps to protect your assets from excessive taxation. Here are just a few common actions:
- Review Your Will and Trusts: Your will and any existing trusts should reflect your current wishes and financial situation. It’s a good idea to revisit these documents annually, especially if there have been changes in your family dynamics, financial status or the law.
- Consider Gifting Strategies: Under current law, you can gift up to $18,000 per recipient in 2024 (rising to $19,000 in 2025) without triggering the gift tax. If you have significant assets, consider making gifts to loved ones now to take advantage of this exclusion and reduce your taxable estate.
- Maximize Retirement Contributions: Contributing to retirement accounts can not only help secure your future but can also lower your taxable income. The 401(k) contribution limit for 2024 is $23,000 for employee salary deferrals and $69,000 for the combined employee and employer contributions. If you’re age 50 or older, you’re eligible for an additional $7,500 in catch-up contributions, raising your employee deferral limit to $30,500.
- Evaluate Your Investments: Assessing your investment portfolio is essential. Selling investments may result in capital gains taxes, so consider holding onto assets long-term or harvesting tax losses to offset gains.
Addressing Potential Changes in Tax Laws
Tax laws can change rapidly, and what’s true today might not hold in a few years. Keep an eye on changes proposed in Washington and in the Georgia state legislature. Staying informed will help you adjust your estate plan proactively rather than reactively.
While it may seem early to think about 2025 tax planning, taking proactive steps now can provide peace of mind and financial benefits later. By reviewing your estate plan and making necessary adjustments today, you can ensure that your legacy is well protected and that your beneficiaries are well taken care of. Getting started on tax planning now can make all the difference when it comes to your estate’s future. Don’t wait until the last minute—begin your preparation today by calling Turner Law in Decatur to schedule a tax planning review.
Posted on the behalf of Turner Law, LLC
