We've made it through Mardi Gras. The revelry, the late nights, the parades and events... there's nothing quite like it. Now that Carnival season is officially over, we can all sit back and relax. Right, CPAs and business owners?
We jest (pun intended). While a few people may have filed their taxes the day their documents were available, many others are in the thick of tax season. Don't worry, we aren't here to give you tax advice or tell you to spend your refund on a shiny new estate plan. Today, we just want to give a quick FYI on the estate tax exemption. One concern we hear from time to time is about the estate tax. Why should your estate be taxed again when it has already been subject to income tax and other taxes? This is usually a misplaced concern. Many people have simply heard the term “estate tax” and haven't considered how or whether it applies to them. Here are the 2019 figures for the estate tax exemption:
1. Individual Exemption (Single people): $11.4 million
2. Joint Exemption (Married people): $22.8 million
With only 1,890 taxable estates in 2018 (per Taxpolicycenter.org), far fewer estates are being taxed than many would have believed. For most of us, there are likely far more pressing estate matters, such as the need to protect an inheritance for heirs who are young, disabled, or not adept at managing finances. If you need help identifying and planning for the issues that are most likely to affect your family, The Ladd Firm can work alongside your existing tax and financial professionals to develop the estate plan that is right for you. You can even bring them with you to one of our free seminars! Although he or she will likely be quite busy for the next month or so, we recommend speaking with your CPA if you have any other tax-related concerns. In the meantime, the rest of us can turn our attention to other matters... like what to do with all those Mardi Gras beads...
(Hint: On March 18-19 you can donate your beads to a good cause through Augusta Evans and Krispy Kreme in the “Beads for Doughnuts” program.)