According to this article in the Wall Street Journal, there is a “golden window” in the US Tax Code that allows taxpayers to gift more this year without being taxed. Quoting directly:
“For the next two years, the gift-tax exemption jumps to $5 million from $1 million for individuals and to $10 million from $2 million for couples—meaning people can give away that much without paying a penny in taxes.
What’s more, the tax rate on gifts above those amounts fell to 35% from a scheduled 55% ”
Normally I don’t consider tax code law to be interesting fare for a blog focused on Lake Martin real estate. Today I certainly don’t want to imply that anyone should make a decision to buy or sell a lake house based primarily on tax reasons. Secondarily, maybe.
What really interested me about this article was that it went on to say that many people are using this opportunity to reduce their estates, and perhaps successfully pass on assets to their heirs so they won’t get hit so hard with estate taxes or higher gift tax rates in the future. Furthermore, authors go on to say that:
“Some also may want to put “sacred family assets”—a beloved vacation home or pieces of furniture, art or jewelry—into trusts to preserve them for future generations.”
Did you just see that? Sacred family assets. The first thing they mention is a vacation home.
But isn’t that part of the appeal to owning one? Maybe the end pursuit isn’t necessarily sacred family assets, but sacred family memories, traditions, and time spent together. Lake Martin is a great place for all of those.
Coincidentally, I was talking Saturday with a guy whom I helped find his own sacred family asset. He admitted although he bought in “the peak” of the market in 2007, he wouldn’t trade one weekend, not even one second, of the time he and his family have spent there. Even now, in the dead of winter, his family couldn’t wait to get back to their Lake Martin home. There is too much fun they could be having.
Can we help you find your sacred family asset?
Or maybe it’s time to let go of it, and you need someone who realizes what this means to your family. We understand the need to make sure that the next family enjoys it as much as you have.
We can help. Call or contact us here.