This time of year, in addition to holiday festivities, it’s a good time to reflect on financial planning opportunities for the coming year. Use these tips to maximize your wealth:
Trusted contacts are different from beneficiaries, but an important part of keeping your assets safe. A trusted contact is someone other than an account owner who your advisor or custodian can reach out to if you are unavailable and cannot be reached. While no account information or details can be shared with your trusted contacts, they can help to relay important information to you, or your advisor, in the event that something happens that changes your ability to communicate or make decisions, or in the case of fraudulent activity. Check in with your advisors to see who they have listed as your trusted contacts and that their contact information is current.
The IRS also allows you to gift up to $15,000 each year to any individual who is not your spouse, without having to report the gift. If you’re looking to reduce any potential estate tax, this can be an excellent way to systemically reduce your estate value each year. However, consider keeping certain assets in your estate for the benefit of stepping-up cost basis.
We also saw a lot of big tax changes take effect beginning in 2018, and with these changes to the tax code, it’s important to know where you stand in terms of any potential tax liability. Mercer Advisors can review your tax liabilities and help you plan for potential ways to lower your taxable income before the year is over. Take a look at our 10 Tax Tips for 2019 and reach out to your advisor with any questions.