Using estate planning to reduce long-term tax burdens

On Behalf of | Mar 17, 2017 | Estate Taxes |

While many people point to trusts as a way to shelter your assets from both taxes and creditors, the real truth is that overall estate planning and comprehensive financial strategy are the best way to reduce your tax burden. Estate planning goes hand-in-hand with financial planning, retirement saving and wealth building, making it a good idea to consult the right professionals on all these matters at an early age. No matter where you are in life, though, our firm can help you plan your estate to support the best financial benefits for yourself and your heirs.

One way to do this is to understand how estate taxes might play a role in your planning. Estate taxes can be levied by the federal government as well as the states. The federal government doesn’t levy estate taxes on any estate worth less than $5.49 million, which means many people never have to worry about those taxes.

When you add in real property, such as your home, and all your investments and savings, though, you might see that your estate is nearing the threshold. If this is the case, smart asset management and estate planning can help you stay just under the mark, so your heirs can avoid the high-percentage tax.

First, you might consider gifting certain amounts of money now rather than later to reduce the value of your estate. Placing assets in trusts, relying on payable-upon-death plans such as life insurance and leveraging the increased exemption for spouses are all other ways to reduce estate tax burdens. Our firm can help you understand all these options and put the right ones into action for your estate.


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