March 4

14 Ways to Show Your Finances Some Love This Year – Part 2


Last week 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. 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 it's helping with educational expenses, supporting a dream vacation, or simply offering a helping hand, annual exclusion gifts embody the spirit of giving and strengthen the bonds that matter most. 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. Contact us to discuss options as there are far better ways to gift than outright.

9. Use Up Your Lifetime Gift Tax Exemption

Use up your lifetime gift tax exemption: It's not just about securing your own 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. Contact us asap as this planning does take time.

10. Allocate More Funds To The Generation Skipping Tax Exemption

As you plan for the future, it's essential to consider the next generation. By allocating additional funds towards your generation-skipping transfer tax exemption (of up to $13M), you provide a seamless transfer of assets to your grandchildren or future beneficiaries. This strategic move not only minimizes tax implications but also lays the groundwork for preserving your family's wealth for generations to come.

11. Make an Extra Mortgage Payment

Your home is more than just a place to live—it's also a valuable asset that can offer tax advantages. By making an extra mortgage payment on your primary home loan, you can increase your mortgage interest deductions on your tax return. Not only does this reduce your taxable income, but it also accelerates your path to homeownership, saving you money in the long run.

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

Planning for the unexpected is an act of love towards your spouse and children, and when you know the right tools to use (like we do) you can make sure your family is provided for and protected for generations to come. One of my favorite ways to do this is using a Lifetime Asset Protection Trust. This tool allows you to protect the assets you leave for your children from any future financial trouble, like lawsuits, or divorces.

14. Create Your Estate Plan

Finally, don't overlook the importance of estate planning in showing love to your family. By finalizing your Will, Revocable Trust, Power of Attorney, and Advance Medical Directive, you ensure that your wishes are carried out and your loved ones are protected in the event of incapacity or death. It's a vital step towards providing peace of mind for you and your family, allowing you to focus on enjoying life's precious moments together. And remember, a plan is more than a set of documents. It’s a lifetime of wise decisions about 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.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

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