Estate Tax Planning in Powell, Ohio
You’ve dedicated your life to building wealth and securing a bright future for your loved ones. Yet, without proper planning, estate taxes could significantly reduce the assets you pass on. This is where the Jarvis Law Office steps in. Our comprehensive estate tax planning services can help you minimize your tax liability, ensuring that your hard-earned wealth continues to benefit your family for generations to come.
Contact our Powell, 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 Powell 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 Powell estate planning attorney today for more information on how you can enjoy estate-related tax benefits.
Your Wealth’s Greatest Threat: The 40% Government Claim
Federal estate taxes may not be of great concern to the majority of Americans, but they can have a profound effect on certain families. Thoughtful planning is crucial to ensure your wealth benefits future generations. If the prospect of losing 40% of your accumulated assets to the Internal Revenue Service (IRS) and other government entities alarms you, it’s time to make a move.
Effective strategies exist to reduce or even eliminate this significant tax liability, but many need time to reach their maximum potential. Don’t delay in safeguarding your family’s financial legacy.
Outsmart Estate Taxes with Strategic Gifting
Armed with a thorough understanding of tax regulations, your Powell, Ohio, estate tax planning counsel can assist you in devising an effective gifting strategy. The annual exclusion is a vital tool for shrinking your taxable estate. As of 2021, you’re permitted to gift up to $15,000 per individual annually. For instance, you could give $15,000 in cash to one child and $15,000 in collectibles to another without exceeding the annual limit. When dealing with larger gifts, your attorney can guide you on distributing them across several years to avoid triggering tax consequences.
Our 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.
Craft a Tax-Efficient Estate Plan Using Irrevocable Trusts
Irrevocable trusts present another strategy for removing assets from your estate. You’ll designate a trustee to administer the trust, granting them full authority over decisions. Once property is placed in the trust, it’s no longer part of your estate and is shielded from estate taxes. When you pass away, your beneficiaries will receive these protected assets.
For individuals with considerable wealth, an irrevocable trust could be a strategic financial move. Consult with our Powell estate tax planning lawyer to review the trust’s advantages. If you determine it’s suitable for your needs, our attorney can handle the trust’s creation for you.
SLATs: Efficient Wealth Preservation for Couples
A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust allowing one spouse to transfer assets to the other during their lifetime. This strategy helps couples maximize their lifetime gift-tax exclusions, particularly beneficial for those with assets over $12.06 million (as of 2022). By moving funds into a SLAT, couples remove these assets from their taxable estate, potentially reducing federal estate taxes, especially upon the second spouse’s death.
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.
The Time is Now to Jump-Start Your Estate Tax Planning
When it comes to estate tax planning, early action is key. The federal government scrutinizes transfers from your estate made in the three years preceding your death. These transactions may be subject to post-mortem taxation. So, jump-starting your estate tax planning today with Jarvis Law Office’s strategic measures can result in significant savings for your estate and beneficiaries.
