Estate Tax Planning in Hilliard, Ohio
Preserving your hard-earned wealth for future generations is a worthy goal, but estate taxes can pose a significant challenge. Without proper planning, a substantial portion of your assets could end up in government hands instead of benefiting your loved ones. The good news? The Jarvis Law Office is skilled in matters related to estate tax planning. We can help you implement strategies to minimize your tax burden, allowing your wealth to continue growing for your heirs.
Contact our Southeast and Central Ohio estate planning lawyer today for a free consultation. After reviewing your case, the attorney will develop a custom estate planning strategy to help you hold onto your assets.
Estate Tax Planning Strategies
Our Hilliard, Ohio, estate tax planning lawyer utilizes numerous estate planning tools and strategies to reduce your tax burden, secure your business interests, and protect your family’s future. These strategies include:
- Charitable trusts
- Irrevocable Trusts
- Spousal Lifetime Access Trusts
- Life insurance trusts
- Gifting
- Re-titling assets
- Grantor-retained annuity trusts
- Qualified personal residence trusts
Your estate plan will protect you today and in the future. Contact our Hilliard estate planning attorney today for more information on how you can enjoy estate-related tax benefits.
Safeguarding Your Family’s Wealth: The 40% Dilemma
While federal estate taxes aren’t a concern for most Americans, they can significantly impact some families. Thoughtful planning is crucial to pass your wealth on to future generations. If the prospect of losing 40% of your accumulated assets to the Internal Revenue Service (IRS) and other governmental bodies alarms you, it’s time to act.
There are proven strategies to minimize or even avoid this hefty tax burden, but many require time to be fully effective. Start planning today to preserve your family’s financial legacy.
Trim Your Estate Tax Bill Through Strategic Gift-Giving
Your Hilliard estate tax planning counsel’s thorough grasp of tax regulations can be invaluable in developing an effective gifting strategy. Leveraging the annual exclusion is a key method to decrease your taxable estate. In 2021, you’re allowed to gift up to $15,000 per person annually. As an illustration, you could present $15,000 in securities to one child and $15,000 in real property to another without exceeding the yearly threshold. For more substantial gifts, your attorney can advise on distributing them over time to sidestep tax liabilities.
Our estate tax planning attorney might also advise gifting to your spouse as part of an asset protection planning strategy. You can gift up to $159,000 a year if your spouse isn’t a United States citizen. Otherwise, there is not a limit on tax-free gifts to spouses. While gifting to your spouse doesn’t always make sense, it is a sound legal strategy in some cases. Thus, consult with our attorney to see if it is a wise strategy for you.
The Role of Irrevocable Trusts in Preserving Your Legacy
Irrevocable trusts present another avenue for removing assets from your estate. You’ll choose a trustee to administer the trust, granting them complete decision-making authority. Assets transferred into the trust are no longer considered part of your estate, thus avoiding estate taxes. These assets will then pass to your beneficiaries after your death.
If you possess considerable wealth, an irrevocable trust might be a strategic choice. Consult with a Hilliard estate tax planning attorney to explore the trust’s benefits. Should you decide it’s appropriate for your situation, our lawyer can establish the trust for you.
Unlocking Tax Efficiency in Marital Estate Planning with SLATs
A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust variant, meaning certain aspects become fixed upon creation. This trust allows one spouse to make lifetime gifts to the other, enabling couples to fully leverage their individual lifetime gift-tax exclusions. For couples with assets over $12.06 million in 2022, SLATs provide significant benefits. By moving assets into a SLAT, these funds are removed from the couple’s taxable estate, thus reducing federal estate tax exposure. This approach can lead to substantial savings in estate taxes when the second spouse passes away.
The current Federal Estate Tax rules will “sunset” in 2025. If nothing changes by then, the new Federal Estate Tax limit will drop to about $6.2 million per person or about half the current amount allowed to be passed on free from estate tax.
Getting Ahead in Your Estate Tax Planning
When it comes to estate tax planning, timing is crucial. Federal authorities review transfers from your estate made within three years of your passing. These assets could be subject to retroactive taxation. Thus, strategic planning today can result in significant financial benefits for your estate and beneficiaries.
