It’s a new year and that means lots of new and exciting things are on the horizon…like gift and estate tax changes! For the year 2020, the federal gift and estate tax exemption will be $11.58 million per person, or $23.16 million for a married couple. This means that each individual may pass up to $11.58 million to his or her heirs without incurring federal gift or estate taxes. So, a married couple may pass up to $23.16 million to their heirs free of federal estate and gift taxes. However, the last surviving spouse must remember to elect to make the predeceased spouse’s unused exemption amount portable when completing the estate tax return for the predeceased spouse. Spouses can pass an unlimited amount of assets to each other free of federal estate and gift taxes through the marital exemption, but the portability election must be made for a surviving spouse to take advantage of the predeceased spouse’s unused exemption amount.

The annual gift exclusion amount will not change this year, staying at $15,000 per person. This means that each individual can give up to $15,000 to as many individuals as they wish without gift tax ramifications. As such, a married couple together can give up to $30,000 this year to children, grandchildren, or other loved ones without incurring gift taxes and without detracting from their lifetime exemptions.

Both Indiana and Ohio remain estate and inheritance tax-free states, so no state level estate and gift taxes will be imposed in these states in 2020.

For more information on federal estate and gift taxes in 2020, check out this article published by Forbes.

While many will be utilizing free time this month to vacation or escape the chaos of the holidays, you may be taking advantage of some time off to work on your New Year’s resolutions. Consider adding an estate plan to your list of goals for the coming year. To get you started, Kiplinger’s recently published a comprehensive list of the ten most common estate planning mistakes. These ten considerations provide a good starting place if you hope to address your estate plan in the year to come.

The top 10 estate planning mistakes according to Kiplinger’s:

1. No “real” plan.

2. Failure to update.

3. No disability/long-term care plan.

4. Disregarding estate tax liability.

5. Improper asset ownership.

6. Lack of liquidity.

7. Overlooking beneficiary income tax implications.

8. Leaving out measures for minor children.

9. Forgetting to consider charitable gifts.

10. Ignoring the impact of beneficiary designations on retirement accounts.

Best wishes for a Merry Christmas and a Happy 2020!