Estate Tax Planning in Columbus, Ohio
Your lifetime of hard work has resulted in significant assets and wealth. Naturally, you want to ensure these investments and properties benefit your loved ones. But the looming threat of estate taxes might seem like an insurmountable obstacle. That’s where Jarvis Law Office comes in. Our experience in estate tax planning can help you significantly reduce your tax burden, allowing your wealth to continue flourishing for generations to come.
Contact our Columbus 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 Columbus 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 Columbus estate planning attorney today for more information on how you can enjoy estate-related tax benefits.
Your Legacy at Risk: Can You Afford to Lose 40% to Uncle Sam?
While federal estate taxes won’t affect most Americans, they can significantly impact some families. Planning is crucial to preserve your wealth for future generations. If the thought of forfeiting 40% of your life’s work to the Internal Revenue Service (IRS) and other government entities makes you cringe, it’s time to act.
Effective strategies exist to reduce or even eliminate this substantial tax burden. However, these approaches often require time to reach their full potential. Don’t delay in safeguarding your legacy.
Minimize Estate Taxes Through Strategic Giving
Our Columbus estate tax planning attorney understands the intricacies of tax laws and can guide you in developing an effective gifting strategy. One approach is to utilize the annual exclusion to reduce your taxable estate. As of 2021, you can gift up to $15,000 per person annually. For example, you could give $15,000 worth of property to one child and $15,000 in cash to another without exceeding the annual limit. For larger gifts, your lawyer can help you structure them over several years to avoid tax implications.
An 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 your attorney to see if it is a wise strategy for you.
Irrevocable Trusts: A Powerful Tool for Asset Protection
Irrevocable trusts offer another avenue to remove assets from your estate. You’ll appoint a trustee to oversee the trust, granting them full decision-making authority. Once assets are transferred into the trust, they’re no longer considered part of your estate and thus avoid estate taxes. Upon your passing, your beneficiaries will receive these protected assets.
For individuals with substantial wealth, an irrevocable trust could be a prudent choice. Consult with our Columbus estate tax planning attorney to explore the advantages of this trust type. Should you decide to proceed, your lawyer can establish the trust on your behalf.
Maximizing Estate Planning with Spousal Lifetime Access Trusts
A Spousal Lifetime Access Trust (SLAT) is a form of irrevocable trust, meaning certain aspects become fixed upon creation. This trust allows one spouse to gift assets to the other while both are alive, enabling couples to utilize their individual lifetime gift-tax exclusions fully. This strategy is particularly valuable for couples with assets exceeding $12.06 million in 2022. By transferring funds to a SLAT, these assets exit the couple’s estate, avoiding federal estate tax. Consequently, this reduces the potential estate tax burden upon the second spouse’s passing.
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 Timely Approach to Estate Tax Planning
Initiating estate tax planning early is a prudent move. The federal government scrutinizes transfers from your estate made within three years of your passing. These assets may be subject to retroactive taxation. Therefore, implementing strategic planning measures now can result in significant financial savings for your estate and beneficiaries.
