Tax planning for your estate is the best way to maximize the portion of your assets you leave to your beneficiaries. Estate taxes can significantly reduce the size of your estate if you don’t plan for these required expenses.
Hiring a knowledgeable estate planning firm like Anzen Legal Group can help you minimize estate tax liability and increase the amount of wealth you leave to your loved ones.
Estate Tax Liability
You are likely subject to federal and state tax liability if you have a high-dollar estate. For estates over $12.06 million, you may owe up to 40%, of your estate in taxes to the federal government upon your death.
There are many additional tax liabilities that your estate may be subject to, such as the generation-skipping transfer (GST). The GST tax places a high tax rate on gifts, including money, property, or other assets, that you give to any relative that is two or more generations younger or any non-family member who is at least 37.5 years younger.
Currently, there are no additional estate tax liabilities in Colorado. However, Colorado residents must abide by federal estate tax regulations.
How Estate Tax Planning Lowers Your Tax Liability
When you work with an estate attorney, they can help you plan your estate to minimize your tax liability. By reducing the size of your estate each year, you can keep it within the estate tax exemption bracket or reduce your federal estate tax rate.
For example, you can generally reduce the amount of taxes you owe on your estate by gifting portions of your estate to your spouse. You may also choose to pay tuition or medical expenses for your family members as a way to endow your assets without taxation. Giving to a 501(c)3 organization or charity or setting up irrevocable trusts are also ways to reduce your taxable estate assets.
Work With Anzen Legal Group to Plan Your Estate Taxes
It is important to work with your attorney to develop estate tax planning strategies to reduce your tax liability. Hire Anzen Legal Group to analyze your personal estate tax liability and implement tax planning strategies that allow you to keep your wealth and pass it on to future generations.