In our last post, we explored 7 ways to show your finances and your family some love with smart, tax-advantaged financial tips for the new year:

1. Make a Qualified Charitable Distribution (QCD)

2. Front-load Your 401(k) Contributions

3. Set Up an IRA for a Child

4. Make Donations During Spring Cleaning

5. Give the Gift of Appreciated Stock Shares

6. Establish a 529 College Plan

7. Make a Roth Conversion

If you missed it, check out Part 1 HERE. This week, we’re continuing the financial love with 7 more tips you can use to benefit your family this month and the year ahead.

Let’s dive in.

8 | Spread The Love With The Annual Gift Exclusion

Don't underestimate the power of spreading love through financial generosity. Did you know you can gift up to $18,000 per person to an unlimited number of people each year? This allows you to share your wealth with family and friends in a tax-efficient manner. These gifts not only escape taxation but also foster stronger connections and deepen relationships with your loved ones. Whether aiding in educational expenses, backing a desired vacation, or extending a supportive hand, annual exclusion gifts epitomize the essence of generosity and reinforce the most meaningful bonds. With the sunset of the estate tax exemption set to occur in 2025, now is the time to make gifts if you have a taxable estate.

9 | Use Up Your Lifetime Gift Tax Exemption

Use up your lifetime gift tax exemption: It's not just about securing your financial future but also about ensuring your loved ones thrive. By leveraging your lifetime gift tax exemption, currently standing at $13.61 million per person, you can minimize estate taxes and provide a significant financial boost to your heirs during your lifetime. Whether it's funding education, helping with a down payment on a home, or simply offering financial support, using this exemption allows you to share your wealth and make a lasting impact on those you cherish most. The exemption is set to sunset in 2025, so if your estate is greater than $5M, now is the time to plan. Planning takes time, contact us as soon as possible.

10 | Allocate More Funds To The Generation Skipping Tax Exemption

When planning for the future, it's crucial to think about the succeeding generations. By dedicating extra funds to your generation-skipping transfer tax exemption (up to $13 million), you facilitate a smooth transfer of assets to your grandchildren or future beneficiaries. This strategic step not only reduces tax implications but also establishes a foundation for safeguarding your family's wealth for generations to come.

11 | Make an Extra Mortgage Payment

Your home serves as more than mere shelter—it's a valuable asset that can provide tax benefits. By opting to make an additional mortgage payment towards your primary home loan, you enhance your mortgage interest deductions on your tax filing. This not only diminishes your taxable income but also expedites your journey to full homeownership, resulting in long-term savings.

12 | Complete Repairs on Rental Property

Investing in your rental property not only enhances its value but also offers tax benefits. By completing repairs on your rental property, you can offset rental income on your tax return while providing a better living environment for your tenants. It's a win-win situation that improves your property's profitability and strengthens your relationship with your renters.

13 | Create a Lifetime Asset Protection Trust

Preparing for unforeseen events is a gesture of love towards your spouse and children. With the knowledge of effective tools (such as what we possess), you can ensure lasting provision and security for your family. One strategy I highly recommend is establishing a Lifetime Asset Protection Trust, which shields the assets designated for your children from potential financial challenges, such as lawsuits or divorces.

14 | Create Your Estate Plan

Lastly, don't underestimate the significance of estate planning as an expression of love for your family. By completing your Will, Revocable Trust, Power of Attorney, and Advance Medical Directive, you guarantee the execution of your desires and safeguard your loved ones in case of incapacity or demise. This essential measure grants tranquility for you and your family, enabling you to concentrate on cherishing life's invaluable moments together. Additionally, bear in mind that a plan extends beyond mere documentation—it signifies a lifetime of prudent decisions regarding your life and legacy.

Show Your Love Where It Matters Most

The month of love might be over, but it’s never too late to make loving financial and planning decisions for your loved ones - and yourself!

As your Personal Family Lawyer® firm, we know the value of planning for the future. But we also know the value of planning for the life you want today and the legacy that extends far beyond your assets.   

 Schedule a complimentary 15-minute call to learn how we can help you create a Life & Legacy Plan that will take care of everyone and everything you love.