It’s That Time of Year Again – Update Your Estate and Tax Planning

The end of the year approaches. Extended school vacations are just around the corner and department store parking lots will soon be full. As part of your personal, financial life, you should also consider some year-end work as well.

Here are some suggestions on what to think about as January 2015 approaches:

Does your will or any trusts need to be updated for any reason Has there been any significant change in 2014 such as births, deaths, a divorce or marriage Have relationships changed such that you want to remove or add someone as a beneficiary Is there a charity that you want to add or delete from your estate plan

Along those same lines, do you need to change beneficiaries in any life insurance, investments or retirement accounts

If you have an advanced health care directive or healthcare power of attorney, do you want to make any changes in your instructions or who you want to be your agent

Make annual exclusion gifts ($14,000 per recipient, or $28,000 per recipient if you and your spouse give the gift).

Have any of your stocks declined in value this year If so, think about selling them so you can offset any gains made throughout 2014. Short term losses are especially useful because they offset income.
Prepay expenses, such as deductible mortgage interest to receive tax benefits this year.

Make charitable donations by years end to get favorable tax benefits.

Can you contribute the maximum amount to your retirement accounts They can provide asset protection and a stable financial base for retirement.

Update buy-sell agreements and make sure the correct value is used when an agreement requires annual revaluations.

Estate and tax planning strategies are not carved in stone and need to evolve over time. The end of the year is a great time to make updates and changes. If youre living in the Bethesda or Rockville, Maryland areas and want help with estate and tax planning, give the attorneys at Longman & Van Grack a call at (301) 291-5027.