It's never too early for end-of-year tax planning
The latest jobs report may suggest that all is going well with the U.S. economy thus far. After all, with more than 200,000 jobs added in June, and more than $1 trillion in mergers and acquisitions announced this year in corporate America, there should be cause for optimism. However, the stability of credit markets remains slightly uncertain, as the debt default in Greece could have a destabilizing effect.
Because of this, planning should take on added importance in the second half of 2015; especially when it comes to tax planning through estate planning vehicles. Indeed, the end of the year is quite a ways away, but there are a few important things that can be done to make the most of your income and to plan for the future. This post will highlight them.
Create a new trust – One way to save on money you make during the year is to create a trust to “shelter” the income for future use. There are a number of types of trusts for different uses, such as a special needs trust or an investment trust.
Make cash gifts – If you don’t know, the law allows you to give up to $13,000 a year in cash without incurring taxes. This could reduce your taxable income and help special people in your life at the same time. It is never too early to think about Christmas gifts and end-of-the year donations.
If you have additional questions about tax savings measures that can bolster your estate plan, an experienced attorney can help.