Fall Cleanup Checklist
Fall is a time of transition. Depending on where you live and your family's traditions, the shorter
days and cooler temps of autumn could signal that it is time to ditch the short sleeves in favor of
long sleeves, pack away the bicycles and tune up the ski equipment, store the lawnmower and
test the snowblower, and swap the spooky season decorations in favor of Thanksgiving décor.
Those of us who live in more southern climates may have less to prepare for weather-wise.
However, fall is still a period of change that can put demands on our time, both at home and at
work. School is back in full swing, the holiday season is ramping up, and there may be projects
you want to complete before the year is over.
This is the perfect time to take stock of the past year and tie up loose ends before a frenetic last
few weeks that can be equal parts stressful and celebratory. Having a fall to-do list can make
the challenges of balancing family and professional commitments more manageable during this
busy season.
Tax Day 2025
Like the holidays, tax season has a way of sneaking up on us.
Next year's Tax Day is scheduled for April 15, 2025. While that is months away, you can still
take steps now to enhance your tax benefits for this year and put you in a strong financial
position headed into next year.
For example, you may want to make additional charitable contributions, maximize annual
contributions to retirement accounts, and defer income or accelerate deductions to optimize
your current year tax bracket. This is a great time to meet with your CPA or accountant to weigh
your options.
If you have incurred capital gains during the year, you can offset those gains by selling
investments at a loss, a strategy known as tax-loss harvesting that can reduce your taxable
income and tax liability. And if you must take required minimum distributions from your taxdeferred retirement accounts, you must do so by year's end. Consider meeting with your financial advisor or developing a relationship with one to determine the best strategy for your
circumstances and goals.
The end of the year is also a good time to get your tax and financial records in order so that
when you meet with your accountant before Tax Day, you will have solid bookkeeping to inform
your tax decisions and strategies.
Holiday Gifting and Gift Taxes
We spend a great deal of time selecting the perfect gifts for our loved ones, but many people
are content to receive cold hard cash.
A survey from Statista shows that the most desired Christmas gift in 2023 was money (43
percent of respondents).1 Seven in ten Americans told a Yahoo Finance/Ipsos poll they would
be happy to receive an investment as a holiday gift, including over 40 percent who said they
would be "very happy."2 Among the top reasons cited for wanting to receive an investment were
saving for the future, building wealth, and paying off debt.3
The annual gift tax exclusion for 2024 is $18,000 per person or $36,000 per married
couple. That means you and your spouse can give up to $36,000 to each of your kids, each of
their spouses, and each of your grandchildren in 2024 without having to file a gift tax return or
pay any tax. However, the annual limit is time-sensitive, so you must make 2024 gifts prior to
December 31, 2024.
Gifts exceeding the annual exclusion amount may require filing a gift tax return (IRS Form 709),
but they will not necessarily result in a requirement to pay gift taxes unless the total amount of
all gifts you have made during your lifetime over the annual exclusion amount exceed your
lifetime exemption ($13.61 million for a single taxpayer in 2024 and double that for married
couples).
An added incentive to make a generous holiday gift in 2024 is that the currently high exemption
amounts are set to expire at the end of 2025. Capitalizing on the current window to make large
gifts can be part of an estate planning strategy to move money out of your estate and avoid or
minimize federal estate taxes.
Estate Plan Review
Looking back on the past year is a useful exercise for your estate plan. The rhythm of the
seasons and our daily lives produce a regularity that can blind us to the many small changes
that are constantly occurring. Add them all up, and you could be in a very different position
headed into 2025 than you were starting 2024.
Was there a birth or death in your family this year? A change to your income? A falling out or
reconciliation with a loved one? Did you move to a new state, buy a new home, or receive an
inheritance? Do you have a child headed off to college in the spring?
Any of these situations - and many others - should prompt you to revisit your estate plan.
Whether there has been a change in the law or a change of heart, your estate plan should
reflect where things stand now - not where they stood a year ago or when you first made your
plan.
Refocusing on What Matters Most
Being around family during the holidays usually produces one or two moments that remind us of
what we are ultimately working toward and saving for.
The holidays only come once a year, but your estate plan can have repercussions for your
family far into the future. Before you get wrapped up in the celebrations, vacations, and fun
temptations that surround the holidays, make time to sit down with your attorney to conduct your
own personal year in review and make any necessary adjustments to your estate plan.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional Counselors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
