You work your entire life to save and have enough money to comfortably retire – and ideally leave something for your loved ones when you pass away. But what about the Estate Tax?
Estate tax is totally separate from federal income tax, property tax, sales tax, and every other type of tax you’ve paid during your lifetime. Estate tax is a tax paid on the net value of all your assets owned at your death. This is sometimes called the “inheritance tax” or “death tax.” If your estate is valued above the exemption amount, your estate would have to pay 40% of your net estate value to the government before any amount could go to your loved ones.
As of 2024, the estate tax exemption for individuals is $13.61 million, and the estate tax exemption for married couples is $27.22 million. Under 1% of estates are affected.
But for those who are affected, there are numerous estate planning strategies available that can greatly reduce the amount owed. We can advise you on the best options for your family.
We offer a number of advanced estate planning strategies for high-value estates that are aimed primarily at reducing your family’s tax burden. We can use advanced estate planning strategies to help you pass assets on for successive generations without risk of a tax liability diminishing your estate at each generation.
Marital Trusts – protects property for a surviving spouse’s benefit
Life Insurance Trusts – irrevocable trust owns life insurance policy on the trustmaker with death benefit paid to the trust
Qualified Personal Residence Trusts – trustmaker retains an interest in their residence while held in trust for a beneficiary
Grantor Retained Annuity Trusts – trustmaker receives income from assets held in trust for a specified time, then transferred to beneficiary
Asset Protection Trusts – protects your assets from creditors, lawsuits or judgments
Land Trusts – trust that holds ownership of property while the owner is alive
Dynasty Trusts – irrevocable trust that can last for generations
Asset Gifting – proper planning for annual and lifetime gifts
You have worked hard to build your family’s wealth and legacy, so it makes sense to put similar effort into protecting those assets after you are gone. At your Life & Legacy Planning Session, we can go into detail about how you can minimize the potential tax burden faced by your family so that you can maximize the inheritance you pass on to your loved ones.
