Estate planning should not be a one-time process. Your personal wishes and assets will change over time, so it’s important to revisit the specifications in your will or trust regularly. At year’s end, with tax season not far off, it’s the perfect time to do this. Consider these three tax-related issues when reassessing your paperwork.

3 Year-End Estate Planning Considerations  

1. Revisit Your Investment Portfolio

Your estate planning documentation should cover your investments, so review their performance before year’s end. If your capital losses exceed capital gains, you can offset up to $3,000 of this excess and carry the remainder forward to the following year. If you’ve sold securities and have recorded an overall loss, you can lock in gains by selling them. If you have recorded gains, on the other hand, you might want to sell those parts of the portfolio that lost. 

2. Take Steps to Lower Next Year’s Taxable Income

The holidays are a perfect time for giving and any charitable donations you make before year’s end will lower your taxable income. You can also consider pre-paying expenses to claim more deductions, or contribute to a qualified non-taxable retirement plan like an IRA. By taking steps to reduce the amount of taxes due, you preserve the integrity of your estate.

3. Give Exclusion Gifts to Reduce Estate Taxes

When you pass on, your estate will be subject to certain taxes, which unfortunately eat into the assets left to beneficiaries. Reduce the amount of future taxes on your estate by giving so-called exclusion gifts now. You can gift up to $14,000 per year per recipient to friends or family, tax-free. An alternative for younger relatives could be investing in a Section 529 fund, which offers tax-free savings for their future education.

Let Zangari Cohn Cuthbertson Duhl & Grello P.C. of New Haven, CT, structure your estate planning to avoid needless fees and taxes. Established in 1946, this law firm provides knowledgeable and experienced guidance in a variety of legal topics. You can get a full overview of their comprehensive offerings online. Whatever you turn to their lawyers for, you can expect the personalized attention of a boutique law firm backed by large-scale resources. To schedule an appointment with an attorney, call (203) 789-­0001.