How Gift Taxes Work

The annual gift tax exclusion is $17,000 in 2023. This means annually you can give $17,000 to as many individuals as you like without filing a gift tax return. But if you give anyone more than $17,000 per year, you'll need to report the excess on a gift tax return. It's unlikely that you'll have to pay any tax because the gifts are only taxed when they cumulatively reach the $13 million exemption. 

For example, If you give your child $2 million in 2023, you’ll have to report a taxable gift of $2 million. If you die before 2026, your estate tax exemption will be $11 million ($13 million exemption - $2 million gift) instead of $13 million. 

Learn more about what will happen when the gift and estate tax exemption gets cut in half here.

 

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If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.

What Will Happen When the Gift and Estate Tax Exemption Gets Cut in Half

Most Americans have estates that fall under the federal estate and gift tax exemption. However, the exemption is set to be cut in half in 2026. This exemption increased to $13 million (actually $12.92 million) in 2023. In 2026, this exemption resets to $6.8 million (adjusted for inflation between now and then) unless Congress acts in the interim. 

What happens if you make a taxable gift before 2026 but die after 2026 when the exemption has been cut in half? Learn more here.

 

Get Started Today: Schedule Your Consultation

 

If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.

Estate Planning Tips to Help Ensure Your Will & Assets Are Found

Estate planning is important, but what happens if no one can find your important documents? All that hard work could be for nothing, leaving your family frustrated and unsure how to deal with sorting out your assets.

It’s important to keep your will in a safe place, where it will be found after your passing. Don’t hide your will under a desk drawer or in a secret compartment. If you do, no one will find it unless they know where to look. Make sure you tell your executor(s) where to find your will when the time comes. 

 

Learn more about estate planning tips to help ensure your will and assets are found here.

 
Get Started Today: Schedule Your Consultation

 

If you’re interested in learning more about estate planning, please contact our estate planning attorneys in Ann Arbor at 734-665-4441.

What happens if the original will can’t be found?

Ideally you should have your original will handy. However, a copy can be used when your original can’t be found, but there are additional hurdles to getting a copy admitted to probate. You can also save a digital copy and email a copy to your named executor(s) if you don’t mind them getting an advanced look at your will. If you have privacy concerns, at least tell your executor(s) where he or she can find a copy.

If you can’t find the original will or a copy, you can call the estate planning attorney who prepared it. They may still have a copy on file, but don’t count on it.

 

Learn more about estate planning tips to help ensure your will and assets are found here.

 
Get Started Today: Schedule Your Consultation

 

If you’re interested in learning more about estate planning, please contact our estate planning attorneys in Ann Arbor at 734-665-4441.

How Do NFTs Fit into Your Estate Plan?

NFTs are unique digital collectible items. They’re based on the concept “I own this.” It doesn’t matter what “this” is, just that it’s valuable or may gain value someday. That’s why various digital collectible assets can be characterized as NFTs, including:

●      Digital artwork

●      Video clips

●      Social media posts

●      Memes

●      Gaming tokens

●      Digital real estate

 

Learn more about how cryptocurrency and NFTs fit into your estate plan here.

 

Get Started Today: Schedule Your Consultation!

 

If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.

Preserving Cryptocurrency: Now and Later

Cryptocurrency, which is digital money, is exhibiting stability as part of the global financial landscape, even though the value of individual coins (units of cryptocurrency) has been notoriously volatile. The overall market hit $3 trillion in value in 2021, only to lose $2 trillion in value so far in 2022. Emerging from the ashes of the 2008 financial disaster, cryptocurrency is likely to retain its status as an investment option because its holders enjoy freedom from government and bank control. 

This advantage can become a drawback when it comes to preserving cryptocurrency. Before you consider including cryptocurrency in your estate plan, it’s imperative that you hold onto your digital cash on a day-to-day basis. This involves preserving the passwords and digital wallets (storage units) connected to your cryptocurrency.

 

Learn more about how cryptocurrency and NFTs fit into your estate plan here.

 

Get Started Today: Schedule Your Consultation!

 

If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.

Already Have a Power of Attorney? Chances Are It’s Outdated.

An FPA can become “obsolete” in a one year. This is because many institutions don’t rely on stale, outdated documents. Depending on your circumstances, a stale, obsolete power of attorney may not be able to help you and your family with insurance contracts, retirement plans, banking and investment accounts, online personal accounts such as email, Facebook, Instagram and LinkedIn, and elder care and special needs planning.

If it’s been more than a year or two since you’ve signed your power of attorney, it might be time for a fresh one. Contact the estate planning attorneys in Ann Arbor at Pear Sperling Eggan & Daniels, P.C. to help setup your power of attorney. We can help make sure you and your family are fully protected by helping you determine:

 

●      Who would be the best choice for this responsibility,

●      How much authority you should give your financial agent, and

●      When to make your power of attorney become effective.

 

Learn more about how you can protect your finances from Coronavirus complications here.

 
Get Started Today: Schedule Your Consultation!

 

If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.