For many estate planners, the question of taxes can feel complex and overwhelming. It is important that you do not bury your head in the sand when it comes to tax filings. By taking some small steps to address the most lingering questions, it is likely that you will find the estate planning process much easier to handle.
Often estate planners are most concerned with understanding how to reduce estate taxes while complying with the law. The more that you research these topics, the more you will learn about how you can save money and make more financially lucrative decisions.
Can I reduce estate taxes if I leave money to charity?
Any gifts left to charity are tax-deductible. This means that you will likely benefit tax-wise if you do decide to leave a portion of your estate to a charitable cause. It is important, however, that you make sure the charity in question is recognized as such from a legal perspective.
What other methods can I use to reduce estate taxes?
One of the main strategies to reduce estate tax is to take advantage of marital deduction if you are married. By doing this, all assets that are passed onto the surviving spouse will not be eligible for taxation.
What assets are not eligible to be considered as part of the gross estate?
If you have received a lifetime gift that you no longer have control of, it will not be considered as part of your estate. Similarly, assets owned by your spouse will not be considered as such.
If you want to learn more about reducing estate taxes, an experienced attorney can help.