Estate Taxes Explained – 5 Questions With Fidelity – Fidelity Investments
Estate Taxes Explained – 5 Questions With Fidelity
Trusts can be useful for many as they can be structured to provide beneficiaries with protection, manage money for minor beneficiaries, help avoid the probate process, and more. This episode of 5 Questions with Fidelity tells you what you need to know about the recent updates to federal estate tax laws that could potentially affect your estate plan. We’ll look at how you can take advantage of the latest gifting limits in your planning strategies, discuss some reasons to consider using trusts, and much more. Key Takeaways:
- The federal estate and gift tax exemption has been raised to $15 million and is scheduled to adjust over time as it’s indexed for inflation.
- The federal annual gift tax exclusion now stands at $19,000 per person, per recipient. An annual gift of $19,000—to anyone—does not count against the federal lifetime exemption of $15 million and can be used as part of an overall gifting approach to help manage estate size.
- No matter the size of your estate, it’s important to consider planning as many states have lower thresholds for estate taxes or inheritance taxes. Wealth transfer planning can help pass assets to loved ones in an intentional manner.
