Estate Tax Planning
Estate Planning and Business Law
We craft tailored strategies that align with your financial goals, ensuring that your estate is distributed according to your wishes while reducing the impact of estate taxes. Protect your legacy and secure your family’s future with our expert guidance. Contact us today to learn how we can help you optimize your estate plan.
Comprehensive Estate Tax Planning Solutions
Understanding and navigating the complexities of estate tax law is crucial to preserving your wealth for future generations. With the passage of the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 (TRA 2010), the federal estate tax exemption has seen significant increases over the years. Starting at $5 million per individual in 2010, it has grown to an inflation-adjusted $11.58 million per individual ($23.16 million for married couples) by 2020. At Heritance Law, we help you make the most of these exemptions to minimize the estate tax burden on your heirs.
Unified Exemption and Strategic Planning
The Tax Cuts and Jobs Act (TCJA) of 2017 introduced a unified exemption that ties together the gift tax and estate tax, meaning that any lifetime gifts you make will reduce your estate tax exemption at death. With the current exemption limits, you can transfer substantial wealth without incurring federal estate taxes, but strategic planning is essential to ensure that you’re maximizing these benefits. Heritance Law’s team of experts will guide you in utilizing your lifetime gift and estate tax exemption wisely, helping you structure your estate plan to protect your assets and reduce tax liabilities.
Leveraging Annual Gift Exclusions
In addition to the unified exemption, the annual gift exclusion allows you to make tax-free gifts of up to $15,000 per individual ($30,000 for married couples) each year without impacting your lifetime exemption. This is a powerful tool for wealth transfer, but it must be used correctly to avoid unintended tax consequences. Heritance Law will work with you to create a gifting strategy that aligns with your overall estate plan, ensuring that your wealth is passed on to your loved ones as efficiently as possible.
FAQ
Estate tax planning involves creating strategies to minimize the estate taxes your heirs will owe upon your death. It aims to preserve as much of your wealth as possible for your beneficiaries by using various legal tools and exemptions.
Estate tax planning is crucial to reduce the potential tax burden on your estate. Without proper planning, a significant portion of your estate could be consumed by taxes, leaving less for your heirs and potentially forcing the sale of valuable assets.
As of 2020, the federal estate tax exemption is $11.58 million per individual and $23.16 million for married couples. Amounts exceeding these thresholds are taxed at a rate of 40%.
The unified exemption combines the gift tax and estate tax exemptions. Any lifetime gifts you make will reduce your estate tax exemption at death. For 2020, the unified exemption is $11.58 million per individual.
The annual gift exclusion allows you to give up to $15,000 per individual per year (or $30,000 per couple) without it counting against your lifetime exemption. Gifts above this amount may reduce your lifetime exemption.
Effective strategies to reduce estate tax liability include making use of the unified exemption, utilizing annual gift exclusions, setting up trusts, and making charitable donations. Consulting with an estate planning expert can help identify the best strategies for your situation.
Yes, estate tax planning can incorporate charitable giving strategies, such as establishing charitable trusts or making direct donations, which can reduce your taxable estate while supporting causes you care about.
It’s advisable to review your estate tax plan regularly, especially when there are significant life changes (e.g., marriage, divorce, birth of children), changes in tax laws, or changes in your financial situation.
Without an estate tax plan, your estate may face higher tax liabilities, leading to a reduction in the assets passed on to your heirs. This could result in financial strain or the forced sale of assets to cover taxes
To begin estate tax planning, contact Heritance Law. Our experienced attorneys will help you understand your options, develop a tailored strategy to minimize estate taxes, and ensure that your wealth is preserved for your beneficiaries.
Why Choose Us
Expertise and
Experience
At Heritance Law, our team brings a wealth of expertise and years of experience to every case. Our attorneys have a deep understanding of the law and a proven track record of success across a variety of practice areas.
Tailored Solutions
We understand that every legal situation is unique, and there is no one-size-fits-all approach. At Heritance Law, we take the time to understand your specific needs and concerns, crafting personalized legal strategies that align with your goals.
Client-Centered
Approach
Your needs are our top priority. We focus on understanding your unique situation and tailoring our legal strategies to meet your specific challenges. At Heritance Law, we listen carefully, keep you informed at every stage, and work diligently to achieve the best possible outcomes for you.
Comprehensive
Legal Services
We offer a wide range of legal services to address your diverse needs. Whether you require assistance with family law, estate planning, business law, or any other legal matter, Heritance Law is equipped with the expertise to provide comprehensive support and guidance throughout your legal journey.
Proven Results
ur firm is built on a foundation of success. We have a history of achieving favorable outcomes for our clients, handling numerous cases with skill and securing significant settlements and verdicts. Our reputation for excellence is a testament to our consistent ability to deliver positive results.
Transparent
Communication
We believe in maintaining open and transparent communication with our clients. From your initial consultation to the resolution of your case, we ensure you are always informed about the progress and developments.
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