Tax Planning
Every transfer of assets following a person’s death is subject to estate tax. A core goal of effective estate planning is to ensure your assets pass to your loved ones, not to taxes.
What Are Gift and Estate Taxes?
The federal estate tax is set by Congress and enforced by the IRS. In addition to the federal estate tax, 12 states and the District of Columbia impose a state estate tax. Whether federal or state estate tax is due depends on several factors, including marital status, the size of a person’s estate and how much gifting a person has done during their lifetime.
Federal gift and estate taxes are subject to a lifetime exclusion amount, meaning there is a limit to the total amount of money or property an individual can give away or pass on without incurring federal gift or estate taxes. Because of the constant changes in the lifetime exclusion amount, it is important to consult with an attorney to ensure you can reduce your tax liability.
Who Will Be Affected by Gift and Estate Taxes?
Individuals who own a business, own properties, or who have accumulated high value assets in retirement plans or investment accounts should consider taking active steps to reduce their estate tax liability. If you are concerned about estate tax liability, Ed, our experienced estate planning attorney at Parsons Behle & Latimer, can help. With over 25 years of experience, Ed’s familiarity with tax law and advanced planning ensures your money will go where it should—to your loved ones.
How to Reduce Tax Liability
There are three broad strategies to reduce gift and estate tax liability: squeezing assets to reduce their tax liability, freezing assets with a high likelihood of growth, or extinguishing assets during your lifetime to avoid taxation at death. Ed can help you identify which, if any, of these strategies should be utilized to help reduce your tax liability.
Ready to discuss your estate planning needs?
Every estate plan is as unique as the individual it serves. As an accredited Estate Planner at Parsons Behle & Latimer with over 25 years of experience in estate planning for families, Ed can help you better understand what plan is best for you. Reach out today for a complimentary consultation.
