7. Be aware of your limits on gifting.  There is an annual maximum amount you can give to any one individual without having a tax consequence.

The current annual gift tax maximum is $12,000 per person per year. In addition, there is a lifetime exemption of $2,000,000. Gifts under the $12,000 yearly exemption do not count against the lifetime exemption. 

If you give any one person gifts that are valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts.

6. Learn about Trusts. Simplify settling your end-of-life issues by transferring your property to a Trust. A Trust is administered by a Trustee. The Trustee can either be the person transferring the property, known as the Trustor, or can be a relative or even a financial institution. Trusts come in a variety of different kinds and can be rather simple or highly complicated, depending on the wishes of the Trustor (creator of the Trust).

There are several reasons for creating a Trust, these include:

 1. Owning property in more than one state or country.

2. Having assets sufficient to incur estate tax obligations.

3. Having heirs with special circumstances or needs.

4. Owning an operating business concern.

5. Having a desire to keep family affairs private.

5.  Start and keep an accurate inventory of your real property and your valuable personal property. This inventory can be a written, audio, or video recording. Be sure to include the name of the owner for each possession.  Do not forget to update this whenever there are any substantial changes in your possessions.

Keeping an inventory can remove a lot of the uncertainty experienced by the Personal Representative of your estate. It will also assist you in the event of loss due to theft or a natural disaster. Keep in mind, an inventory should not be kept at the same location as the property.

4.  Mark your calendars for will updates.  An old will or trust may end up doing more harm than good. In our experience, about ten percent of all estates have some type of conflict. These estate conflicts are expensive and directly impact the amount of estate assets, including cash that pass on to the heirs.  Avoid difficult conflicts with your estate by keeping it up-to-date.

3. Make sure you have a living will and a durable power of attorney.  These two documents can give you personal control over your own health care, even if you should become incapacitated. These documents are available for free on the JacksonWhite Elder Law Web site or you can have an estate planning attorney customize one to your specifications.

2. Review your current estate planning documents and strategies frequently. Changes in the law may affect your current situation – sometimes to your advantage. Talk to the person who established your estate planning documents on a regular basis and ask that they keep you updated with changes in the law.