Estate Planning in Turbulent Markets

The S&P 500 index peaked in mid-February. Since that time, the stock market has experienced a significant decline. Although market corrections are not unusual, volatility can be concerning. No one has a crystal ball to predict how the market will react, especially in the short term, but the decrease in stock values can provide valuable long-term planning opportunities.

Gifting

If assets are gifted during a market downturn, future appreciation in the assets will escape taxes. That makes for more effective use of the combined lifetime gift and estate tax exclusion amount (currently $13.99 million for an individual, $27.98 million for a married couple).