Estate Tax Planning
The state or federal government can tax the transfer of wealth passed from the deceased to their heirs. Many people are unaware that their beneficiaries must pay taxes on their inheritance. Hefty estate taxes then become an unexpected hurdle families have to deal with after their loved one dies.
Because of this, estate tax planning is a must. At Gillmore & Wilson, LLC, we're ready to help you keep your loved ones from being weighed down by tax debt. We have decades of experience helping clients create a plan that will protect their assets and minimize the amount of estate tax they owe. Our lawyers can help you achieve your goals while minimizing the financial impact of your decision-making.
When Estate Tax Applies
When an individual dies, their estate is subject to federal estate tax if the amount of the assets exceeds the exemption amount. The federal estate tax exemption is $12.06 million for individuals and $24.12 million for married couples as of 2022.
For estates worth more than this amount, the federal government will tax 40 percent of any excess.
Minimize Your Future Tax Liability
You can reduce your potential tax liability by distributing assets in a tax-efficient manner. Our team of professional estate tax planning attorneys in the Newton, Kansas, the area will work with you to create a plan that will accomplish this. Here are some of the strategies we may investigate:
Gifting. In addition to leaving assets in your will, you can also reduce your taxable estate by gifting a portion during your life. Using this technique, you'll be able to see the rewards of your giving while you're still living.
You can also reduce your family's estate taxes by giving assets to charity. If you give the gift to a qualified 501(c)3 organization, there will be no tax on that part of your legacy.An Irrevocable Trust. You can reduce the size of your estate and save on taxes by using a trust. An irrevocable trust is one way to accomplish this goal. A well-drafted, ironclad trust offers the greatest protection for your assets.
·Life Insurance Policy. If you have a large life insurance plan and it is worth more than $12.06 million, the excess may be taxed. To avoid this problem, consider delegating ownership of your policy to someone else. The insurance will be held by a designated beneficiary, thereby removing it from your estate and allowing you to reduce taxes.
Gillmore & Wilson, LLC, Can Help Safeguard Your Assets and Beneficiaries
If you have concerns about the future of your estate, it's important to take steps now. At Gillmore & Wilson, LLC, we will use our over 40 years of experience to help you create an estate tax plan that protects your assets and provides for your loved ones, possibly now and for years to come!
Call us at (316) 283-1550 for more information about our services, or use our online contact form to send a message and set up a consultation.
We serve Newton, Hesston, Sedgwick, Halstead, Peabody, and the surrounding Kansas communities.