Front Page|Our Services|Our Team|Client Center|Financial News|Events|Contact Us

Financial Briefs

More Articles  Printer Friendly Version


2022 Estate & Gift Tax Planning For Large Estates

5042 1

In 2022, the lifetime exemption from gift and estate tax is $12.06 million. Under current law, which is unlikely to be changed in Congress, the exemption rises annually through 2025 based on the inflation rate.

With inflation in the first half of 2022 soaring at an annual rate of 8.6%, the exemption from estate and gift taxes will be about $12,180,000 in 2023. After 2022, inflation is expected to revert to its historical norm of 3%, so an estimated $12.4 million of your estate will be tax exempt in 2025. Thus, a married couple is expected to be able to pass nearly $25 million to their heirs from estate and gift tax.

At that point, the estate tax will affect a fraction of American taxpayers; it’s as if it were repealed. Then, boom! In January 2026, the exemption from estate and gift tax estate tax is scheduled to be slashed in half to $6.3 million! Suddenly, the estate tax will take a bite out of the wealth of many more households. Doctors, lawyers, business owners, and their heirs are likely to see estate tax diminish their wealth, wealth that took a lifetime to build.

With real estate, stocks, and other capital-gain investments appreciating sharply in recent years, individuals with large estates should be thinking now about how to take full advantage of the current exemption rules. If you want to reduce taxes on the wealth you leave to your family and protect assets from liability and creditor risk for decades to come, plan it out now -- while you have this chance.

Your grandchild may be a toddler today, but you can shield them from losing family assets in a divorce 30 years from now. Likewise, you can shield your children’s assets from professional liability or business creditors. Years after you’re gone, say your grandchild becomes a doctor or landlord, planning now can eliminate the risk of property you leave being subject to a lien against your heirs’ creditors.

Planning now can ensure you keep a vacation home, time share, and other assets are kept out of reach of your heirs’ creditors.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.

Email this article to a friend

10 More Year-End Planning Tips To Slash Your 2022 Taxes
10 Year-End Tips to Slash Your 2022 Tax Bill
Start Thinking About Year-End Tax Planning Now
The New Retirement Plan Distribution Rules
Relying On An IRA Custodian For Advice
Financial Disappointment Can Darken Your Financial View
Why Knowledge Of Financial History is Critical To Investors
Inflation Declined And Stocks Rallied Today
Amid 2Q '22 Turmoil, Fed’s Robo-Economist Forecast Was More Accurate Than Leading Economists
A Long-Term Perspective Amid The Bear Market Of 2022
Since A Picture Is Worth A Thousand Words, We’ll Be Brief
Estate Planning For The 99.5% Of Americans
Investor Alert: Bear Markets Bring Out Advice And Scams Preying On Fear
What Happens With Your Assets When You Die?
The Worst Of The Bear Market Is Over, Says Poll Of Professional Wealth Advisors

This article was written by a professional financial journalist for Vantage Point Financial Services, LLC and is not intended as legal or investment advice.

©2022 Advisor Products Inc. All Rights Reserved.
© 2022 Vantage Point Financial Services, LLC | 329 Regency Ridge Drive, , Centerville, OH 45459 | All rights reserved
P: 937-432-1111 | F: 937-432-1110 |
Contact Us

Securities offered through First Allied Securities, Inc., A Registered Broker/Dealer, Member: FINRA / SIPC.
Advisory services are offered through First Allied Advisory Services, Inc., A Registered Investment Adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation. This site has been published in the United States for resident of the United States. Persons mentioned in this site may only transact business in states in which they have been properly registered or are exempt from registration.

Privacy Policy | ADV