There are some tactics that Georgia residents could use to reduce their future estate tax bill. The first strategy is to transfer up to $11.4 million in assets to their beneficiaries either in gifts or through their will. Married couples can choose to combine their estate tax exemption, which means that they could give up to $22.8 million tax-free. Giving money to charities can also help to reduce an estate’s overall worth, which can reduce the amount of money paid to the government.
It is important for parents and grandparents to talk with their heirs about their philanthropic goals. This is generally true whether an individual creates a donor-advised fund or chooses to establish a foundation. Doing so can help a younger person learn about the value of philanthropy as well as understand how the family’s foundation is going to operate.
Keeping lines of communication open can be critical if older and younger generations disagree on what constitutes a worthy cause. Older Americans are more likely to support religious organizations while younger people are more likely to be focused on helping the environment. Ideally, parents and grandparents will learn to trust the instincts of their children and grandchildren as they get older. Generally speaking, family matriarchs and patriarchs should be seen as mentors who solicit and consider input from multiple sources.
It is generally a good idea for individuals to let their families know about their estate planning goals, and they might want to have their attorney present at the time. Doing so may prevent arguments between siblings or prevent a will from being challenged.