Page 14 - Boca Club News - November '24

Page 14, Boca Club News
Legal: Gift and Estate Tax

By Michael J Posner, Esq., a partner die in 2026, that $3 million will be subject to estate tax of While the foregoing mostly affects the one percent of
in Ward Damon, a mid-sized real at least $1.2 million. Remember, the estate tax exemption wealthiest Americans, there is one element of the gift tax
estate and business-oriented law has a “use it or lose it” philosophy, which means that if exemption that affects ordinary people. Generally, any gift
firm serving all of South Florida, the federal gift tax exemption is not fully utilized while a of cash or assets is subject to gift tax, or if utilizing the
with offices in Palm Beach County. person is still living and the federal estate tax exemption is lifetime estate tax exemption no gift tax would be due as
They can be reached at (561) 594- lower at death (such as what will occur in 2026), then you long as a proper gift tax return is filed. Whenever a portion
1452, or at mjposner@warddamon. cannot retain the previously higher tax exemption. of the federal gift tax exemption is used the amount must
com. This type of transfer can be accomplished by outright be reported to the IRS on a Form 709 Gift Tax Return the
Many people, as they get older, gifts but many wealthy individuals do not want to make following tax year.
wish to transfer some of their accumulated wealth to their such a large gift to their heirs, either due to age or the To avoid this issue for smaller gifts there is a gift tax
children, grandchildren or to charities, partially to help concern that their heirs are not fiscally responsible. One exclusion for gifts of less than $18,000 in one year, or
other people but also to effectuate estate planning and solution is to create an irrevocable trust from current $36,000 from a couple to one person. For example, a
tax needs. One issue relating to gifts (both pre- and post- assets, thus reducing the size of their estate to reduce or husband and wife could give their son and daughter-in-law
testamentary via a will or trust) is the estate/gift tax burden avoid estate taxes that would otherwise be due. This type a total of $72,000 in one year without having to file a Gift
imposed on the recipients of said money and assets. of trust allows for an orderly distribution of the funds to Tax Return or utilizing their lifetime estate tax exemption.
Historically, estates and gifts have been subject to taxes heirs either upon death or over a period of time, including This exclusion adjusts annually for inflation and is not
that have varied throughout the years in the percentage paying to multi-generations of heirs if the trust is properly currently set to change or expire in 2026 like the estate
of the amount taxed and the amount that was excluded drafted. tax exemption change.
from the tax. In an episode of Law and Order called The
Taxman Cometh, the detectives investigate a rash of deaths
of wealthy individuals at a cancer clinic prior to the end If You Want Protection From The Flu, Get
of 2010. In 2009 Congress failed to renew the federal
estate tax for heirs of decedents who died in 2010. When Your Shot Now Ahead Of Peak Season
estate tax law that had passed in 2001, resulting in no

a rash of patients died prior to December 31st, 2010, the
tax lawyer who referred the patients and the doctor that While winter in Florida diseases like asthma, COPD, and for the elderly. “It’s best
treated them were both deemed suspicious but neither were is warmer and more to get your flu shot in September or October,” she advises.
ever prosecuted. humid than most parts of This timing allows your body to build immunity before flu
In 2017 Congress passed a new estate tax law, the the country, the common season peaks.
Tax Cuts and Jobs Act (TCJA), which doubled the estate wintertime sicknesses are For those considering the COVID-19 vaccine boosters,
tax exemption, raising it from $5.5 million for single still prevalent here and especially patients with respiratory diseases, Brito
filers and $11.1 million for married couples in 2017 with there are steps you can recommends consulting with your healthcare provider.
the exemption adjusted annually for inflation. For 2024 take right now to protect Other preventive measures like washing hands
the federal estate tax threshold is $13.61 million for yourself. frequently, wearing a mask in group settings, and
individuals, which means married couples do not have to Dr. Luisa Brito, maintaining social distance can also help reduce the spread
pay estate tax if their estate is worth $27.22 million or less. an internal medicine of illness. These strategies, learned from the COVID-19
The exemption amount will likely go up again in 2025. physician with the Palm pandemic, remain effective during flu season.
Unfortunately, the TCJA expires at the end of 2025, Beach Health Network The RSV vaccine, available as a one-time shot, is
which means that starting in 2026 the exemption amount Physician Group and on recommended for people over 60 with increased health
will revert to the prior level plus inflation, estimated to staff at West Boca Medical Center, shares insights on risks or anyone over 75 too.
be $7 million for single filers and $14 million for married common wintertime illnesses and how to protect your When should you seek medical attention? Brito
couples. This may mean a repeat of the Taxman Cometh health during colder months. warns that symptoms like high fevers, chest pain, trouble
scheme, with callous heirs hoping their wealthy parents Winter brings a surge in respiratory diseases like breathing, severe body aches, dizziness, drowsiness, and
die in 2025 instead of 2026, as the potential tax savings COVID-19, influenza, and RSV, but also the common cold. persistent fatigue may require a visit to your doctor.
could be as high as $2.8 million dollars by an individual The cooler weather is a risk factor, as people tend to stay Stay healthy this winter by following these tips and
dying December 31st, 2025 versus January 1st, 2026 and indoors more, increasing exposure to viruses. Additionally, being proactive with your healthcare.
$5.6 million for couples who both die before December cold and drier than usual air can irritate the respiratory tract, For more information on Luisa Brito, M.D. at Palm
31st, 2025. making those with conditions like asthma or COPD more Beach Health Network Physician Group – Primary
One option many wealthy families are doing is taking susceptible. This is especially concerning because less Care practice, visit https://www.pbhnphysiciangroup.
advantage of the higher tax exemption by transferring gift time in the sun and reduced physical activity can weaken com/find-a-doctor#term=Luisa%20Brito%20
money and assets that would otherwise be inherited at death. immune defenses. MD&detail=1649841057. Dr. Brito’s office is located at
For example, if someone has an estate of $10 million they To protect yourself, Dr. Brito emphasizes the importance 9970 Central Park Blvd., North, Boca Raton, FL 33428,
can make a gift of three million prior to December 31st, of flu shots, particularly for individuals with respiratory (561) 487-7931.
2025 and take a deduction from their estate tax exemption,
making the gift tax free. If they fail to make this transfer and Paid Advertisement