Estate Tax Planning in Lancaster, Ohio
Building wealth is a journey of dedication and perseverance. As you contemplate your legacy, you likely want your assets to benefit your family, not the governmentโs coffers. Estate taxes can pose a significant threat to this dream, but thereโs hope. The Jarvis Law Office is experienced in estate tax planning, offering strategies to minimize your tax burden and maximize the wealth you pass on to the next generation.
Contact our Lancaster 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 Lancaster, Ohio, estate tax planning lawyer utilizes numerous estate planning tools and strategies to reduce your tax burden, secure your business interests, and protect your familyโs 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 Lancaster estate planning attorney today for more information on how you can enjoy estate-related tax benefits.
Protecting Your Family’s Future: The 40% Wealth Drain You Can’t Ignore
Federal estate taxes may not concern most Americans, but for some families, they pose a real threat. Proper planning is essential to ensure your hard-earned wealth reaches the next generation intact. If youโre uneasy about potentially losing 40% of your assets to the Internal Revenue Service (IRS) and other governmental bodies, now is the time to take control.
There are proven methods to minimize or even avoid this hefty tax burden, but many require time to be fully effective. Start planning today to secure your familyโs financial future.
Smart Gifting as a Powerful Tool to Lower Estate Taxes
With their deep knowledge of tax laws, our Lancaster estate tax planning attorneys can help you craft a savvy gifting strategy. The annual exclusion is a key component, allowing you to reduce your taxable estate. Since 2021, the limit has stood at $15,000 per person yearly. You could, for instance, gift $15,000 in stocks to one child and $15,000 in real estate to another, staying within the annual limit. For more substantial gifts, your attorney can advise on spreading them across multiple years to sidestep tax consequences.
The 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 isnโt a United States citizen. Otherwise, there is not a limit on tax-free gifts to spouses. While gifting to your spouse doesnโt always make sense, it is a sound legal strategy in some cases. Thus, consult with your attorney to see if it is a wise strategy for you.
Safeguarding Your Legacy: The Power of Irrevocable Trusts
Irrevocable trusts present a strategic option for removing assets from your estate. Youโll designate a trustee to manage the trust, entrusting them with all decision-making responsibilities. Assets placed in the trust are effectively removed from your estate, shielding them from estate taxes. These assets will then pass to your beneficiaries upon your death.
If you possess significant wealth, an irrevocable trust might be an astute financial move. Discuss the potential benefits with a Lancaster estate tax planning attorney. If you choose to move forward, our lawyer can handle the trustโs creation for you.
SLATs: A Powerful Tool for Married Couples’ Estate Planning
Spousal Lifetime Access Trusts (SLATs) are a type of irrevocable trust, which means they have limited flexibility after establishment. These trusts facilitate inter-spousal gifting during the lifetime of both partners, allowing couples to maximize their combined lifetime gift-tax exclusions. This approach is crucial for couples whose assets surpass $12.06 million in 2022. Transferring assets to a SLAT removes them from the coupleโs taxable estate, thereby reducing the estateโs exposure to federal estate tax. This strategy can significantly decrease the estate tax liability following the death of the second spouse.
The current Federal Estate Tax rules will โsunsetโ 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.
Estate Tax Planning: Why Sooner is Better
When it comes to estate tax planning, an early start is advantageous. Federal authorities review estate transfers occurring in the three years preceding death. These transactions could face post-mortem taxation. Consequently, thoughtful planning in the present can lead to substantial monetary benefits for your estate and loved ones.