Estate tax planning
Estate tax planning is a very important tool if you want to preserve your wealth for future generations as much as possible. Knowing your potential tax liability can be a great place for you to begin your estate tax plan. Considering the fact that you have worked your entire adult life to save for retirement and to build a nest egg and make sound financial decisions, hopefully you will have something left over to leave your loved ones after you die. We all know that two things in life are for certain: death and taxes, and even after you die, the government will want to tax you one last time. This is called the federal estate tax, which is also known as a death tax.
The state of California does not impose an inheritance tax, and today, only a handful of states still do impose an inheritance tax. Currently the state of California does not collect an estate tax on the state level; therefore, the federal estate tax gets a lot more attention. The good news is that federal estate tax only affects the largest estates that are worth over $5.25 million as of 2013. Due to the fact that this tax exemption is so high and because all property that passes to a surviving spouse is exempt, the vast majority of estates do NOT owe any federal estate taxes.
On the other hand, if you are very wealthy and have a sizeable estate, then advanced estate tax planning will be important and you will want to consider which strategies are available to minimize your exposure to the federal estate tax. Since there are numerous “tools in the toolbox,” once we analyze your assets and objectives, we will be able to craft an advanced estate plan that is tailored to meet your goals. The biggest enemy to a large estate is not the IRS, but procrastination! If you want to maximize your wealth, then we encourage you to start planning today and while you’re still ahead of the game. The earlier you begin planning, the more tax savings you can enjoy and the easier it will be.
An advanced estate tax plan can utilize a variety of tax-saving strategies such as life insurance trusts, asset protection trusts, dynasty trusts, land trusts, grantor retained annuity trusts, asset gifting and much more. To get started, contact a Santa Rosa estate planning attorney from The Law Office of Eric S. Gullotta today! We can be reached at 707.938.7234.