If you’re one of the 10 million filers who still opt to receive refunds in the form of a physically mailed check, here’s a good reason for you to start going electronic. Recently, millions of dollars in refund checks were stolen right out from under taxpayer noses. 

The other problem here is, if you checked to receive that check by mail, you can’t switch to receiving it via electronic payment. So, the check keeps getting sent, and the check keeps getting taken. 

This is one of those times that we here at Above All Accounting, Inc agree with the IRS: time to go digital. 

And if you were one of those whose refund check still hasn’t arrived, and you think you may have fallen victim to check theft, fill out this form and (ironically) mail or fax it to the IRS. Then be prepared for a bit of delay as it could take up to 4 months for the Treasury Department’s Bureau of Fiscal Service to determine the validity of your claim.  

Something else the IRS recently issued guidance and relief on: deadline extensions for victims of Hurricane Helene. This includes all of North Carolina, Alabama, South Carolina, Georgia, and parts of Florida, Tennessee, and Virginia. 

If you’re in one of the affected areas, you now have until May 1, 2025, to file your federal taxes and make payments. This includes 2024 taxes due in March and April, 2023 taxes with extensions, and quarterly estimated tax payments. More details here.

Also, our thoughts go out to you as you continue to face the after-effects of Hurricane Helene.

Whatever my Yamhill County team and I can do to help you with tax questions, please don’t hesitate to reach out:  (503) 648-6184

With both of the situations above, you’re having to make moves reactively. In the interest of helping you be proactive, today I want to discuss tax moves that will be really vital to make in the coming year. In this case, specifically, we’re talking about transfer of wealth moves when it comes to your estate plan. 

Let’s dig in. 

Transfer of Wealth Moves McMinnville People Need to Make Now
“If you’re going to live, leave a legacy. Make a mark on the world that can’t be erased.” – Maya Angelou

Thinking about your inevitable transfer of wealth to your heirs probably doesn’t make you light up inside. And that’s understandable. 

Making space to understand the tax implications alone is time-consuming and headache-inducing. Then, when you’re designating beneficiaries, you potentially have to deal with awkward dinner table conversations and the risk of family drama. 

But on a deeper note, loss is a reality no one wants to face. And I get that.

But there are some current dynamics going on in the tax world that you need to know about. With the Great Wealth Transfer and the TCJA sunset upon us, the topic no one wants to talk about is the topic we can’t afford not to talk about. 

For a little background: America is currently experiencing the greatest transfer of wealth history has ever seen, with Baby Boomers expected to transfer 84 trillion dollars (try writing out the zeroes on that number) to Gen X and Millennials by 2045.

And the TCJA only raises the stakes. The current lifetime estate tax exemption rate of 13.6 million dollars will drop to around 7.5 million by 2026. (And we thought estate planning was difficult now?)

So … what does this mean for YOU?

The best thing you can do for your estate (and for your heirs) is to start planning now. Consider how you can get the ball rolling on your transfer of wealth before the exemption decreases so that your estate tax liability is as minimal as possible (which means your wealth ends up with your loved ones, not the government). 

If you don’t know where to begin, here are four basic steps to get the planning started:

1. Set your goals. 

Think big picture here. More than dollar signs and zeroes, how do you want your money to make an impact? How can your transfer of wealth change lives (and even the world)? 

Be specific and take your time with this one. This sets the stage for everything to come. Think it all the way through.

2. Organize your assets.

Now, let’s make those big-picture goals practical by writing a will. List all your assets and decide who gets what. Then name an executor—someone you trust to handle the nitty-gritty after you’re gone. And don’t forget to keep your will updated. 

It’s also wise to establish a trust. A trust can save you and your heirs a lot of hassle down the road by protecting your assets from creditors, taxes, and the chaos of probate court.

If you have large assets to distribute, a trust is a good way to go. Consult with an estate attorney to determine the best option for you.

3. Strategize for tax efficiency.

The name of the game here is shrinking your taxable estate. A few ways you can do that are:

• Annual gifting. The IRS lets you gift up to 18K per person annually, tax-free. Spread the love while you’re still alive and reap the tax benefits. 
• Irrevocable trusts. Think of it as a one-way street: The trust gets full ownership of your assets so they’re no longer part of your taxable estate. Just remember, “irrevocable” means no take-backs.
• Family Limited Partnership. With an FLP, family members share ownership of assets, and this setup can help sidestep gift and estate taxes that would otherwise apply.
• Generation-Skipping Transfer Trust. The generation-skipping transfer tax targets gifts to grandkids or younger relatives. Thanks to the TCJA, it has a lifetime exemption of 13.61 million dollars through 2025, making it a handsome option for moving a lot of wealth. But you’ll need to act quickly – when the TCJA sunsets, the exemption will revert to 5 million dollars. 
• Charitable giving. You can reduce your taxable estate by making gifts to charities during your lifetime or through your estate plan. Look into donor-advised funds, private foundations, or charitable trusts.

4. Communicate your plans.

According to the Milken Institute, 35 percent of Americans don’t plan on discussing their transfer of wealth with their families, even though 48 percent are planning to leave something behind. That’s a recipe for some serious family feuds. 

Sit down with your heirs and share your vision for your wealth (remember step one?). Give them some wisdom on managing the assets they’ll inherit, and don’t shy away from their questions or input. 

The more clarity you can provide now, the better. The last thing you want is your legacy getting tied up in a courtroom—or worse, in a family argument that endures for generations.

If you transfer your wealth the tax-smart way, you can make sure your hard-earned assets go where you want them, with as little stress as possible.

We’ve helped our other McMinnville clients. And we can help you too.

It isn’t just about keeping the IRS at bay—it’s about taking care of the people you love. We know that sorting out the details isn’t easy, and we’re always here to help however we can. 
503-648-6184

To our loved ones and yours,

Lisa Heckman