Even though we are now two months into 2015, there are likely many New Year's resolutions that you have yet to fulfill. Perhaps you haven't made it into the gym quite as often as you vowed or gotten around to cleaning up the basement clutter that has become an eyesore
On a more transactional -- and even more important -- level, perhaps you haven't gotten around to creating that long-overdue estate plan.
This is by no means meant to criticize, as there are still ten months left for you to make good on your 2015 resolutions.
However, in order to help you get that much closer to fulfilling your resolution of creating an estate plan, today's post, the first in an ongoing series, will provide some basic background information.
Today's topic is the estate tax exemption for 2015.
The federal estate tax exemption for 2015 is $5.43 million. What this means is that the first $5.43 million in gifts you leave to your heirs, otherwise known as bequests, will be free of any and all federal estate tax.
Breaking things down a bit further, if you are married, it's important to understand that both you and your spouse are each given your own federal estate tax exemption and that in the unfortunate event of your loved one's demise, any remaining exemption amount can be rolled over to you.
When you hear amounts in the millions of dollars, it may cause you to automatically think that estate planning is just not for you. It's very important to remember, however, that you likely have more assets than you think and that they can add up very quickly, meaning estate planning is very much for you.
Consider speaking with an experienced estate planning attorney today to learn more about what estate plan is right for you and to move even closer toward fulfilling your 2015 resolution.
Source: The Wall Street Journal, "Three things you need to know about estate planning," Bill Bischoff, Feb. 11, 2015