Canton Estate & Gift Taxation Lawyer
One of the most beneficial ways to transfer wealth is by strategic gifting, which enables your heirs to utilize assets in the present, as well as avoid taxation if done properly. Canton estate & gift taxation lawyer Brian S. Karpe may be able to help you avoid considerable taxes in this endeavor, as annual gifting (if done early enough) allows you to bequeath a large portion of your estate tax-free.
Estate Gifting is For Everyone, Not Just The Wealthy
Very high net worth individuals (spouses that have $25.84 million or more or individuals who have $12.92 million or more) are subject to estate taxes upon their death. There are many ways a large estate can be reduced in size to avoid taxation, and gifting is one of those methods. However, estate tax gifting is not just for the ultra-wealthy. By annual or semi-annual gifting, you can ensure that your assets are put to use now, instead of years or decades in the future, when your heirs need them the most.
How Estate Gifting Works
In 2023, an individual can gift up to $17,000 tax-free, while a married couple can be gifted twice that much ($34,000). For example, let’s say that you want to gift to your son, daughter-in-law, and their two children (your grandchildren). You would be able to gift $34,000 in total to your son and daughter-in-law, as well as $17,000 each to your grandchildren. That amounts to $68,000 in tax-free gifting. Currently, you can gift up to $12.92 million (tax free) over your lifetime, though the limit is increased every year or so.
Other Ways to Reduce Estate Tax
Estate and gift taxation lawyers often utilize other legal measures to avoid estate taxes, including the creation of family limited partnerships, various trusts, and charitable remainders. While less than 0.1 percent of estates face any taxation, there are ways to ensure that your estate is taxed minimally, or not at all if you are near the cusp. An estate tax lawyer may be able to help by setting up or advising you on the following:
- Generation skipping trust
- Irrevocable life insurance trust
- Family limited partnership
- Charitable trust
- Donor advised fund
- Investing in family owned businesses (your own family)
- Joint trust
- Marital transfer or marital trust
- Special use real estate valuation
- Qualified personal residence trust
- Private annuity
Reach Out to a Canton Estate and Gift Tax Lawyer to Get Started Today
Through the use of strategic annual gifting to children, grandchildren, and other family members or friends, you can drastically reduce the size of your estate over the years. But you must begin this process early. Furthermore, there are many other legal avenues you may wish to pursue in addition to gifting in order to reduce the size of your estate and avoid taxation. To speak with an experienced attorney, call Canton estate and gift taxation lawyer Brian S. Karpe. Call us today at 860-217-1458 to schedule a free consultation.