Estate Tax Planning in Upper Arlington, Ohio
As you reflect on your financial achievements, you likely dream of the positive impact your wealth could have on future generations. But estate taxes can erode a significant portion of your legacy. Fear not—the Jarvis Law Office is here to help. Our Upper Arlington estate tax planning lawyers can help you navigate this complex landscape, minimizing your tax burden and ensuring your wealth continues to grow for your beneficiaries.
Contact our Upper Arlington 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 Upper Arlington 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 estate planning attorney today for more information on how you can enjoy estate-related tax benefits.
Preserving Your Financial Legacy: The 40% Challenge
While federal estate taxes won’t impact most Americans, they can be a significant hurdle for some families. Strategic planning is essential to pass your wealth on to future generations. If the idea of forfeiting 40% of your financial legacy to the Internal Revenue Service (IRS) and other governmental organizations makes you uncomfortable, it’s time to take action.
There are proven tactics to minimize or even avoid this hefty tax burden, but many require time to be fully effective. Start planning now to protect what you’ve built.
Smart Gift-Giving: Your Secret Weapon Against Estate Taxes
Our Upper Arlington estate tax planning attorney’s deep knowledge of tax legislation can be crucial in developing a robust gifting strategy. One key approach is utilizing the annual exclusion to reduce your taxable estate. In 2021, you can gift up to $15,000 per person each year. For example, you might present $15,000 in mutual funds to one child and $15,000 in business interests to another without surpassing the yearly threshold. For more substantial gifts, our lawyer can help you structure them over time to circumvent tax implications.
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.
Fortifying Your Legacy with Irrevocable Trusts
Irrevocable trusts offer a powerful way to remove assets from your estate. You’ll select a trustee to oversee the trust, entrusting them with all decision-making responsibilities. Assets transferred to the trust are excluded from your estate, thus avoiding estate taxes. Upon your death, these assets will be distributed to your beneficiaries.
If you’ve amassed significant wealth, an irrevocable trust might be a prudent consideration. Discuss the potential benefits with our Upper Arlington estate tax planning attorney. Should you decide to move forward, our lawyer can manage the trust’s establishment on your behalf.
Leveraging SLATs for Effective Marital Estate Tax Planning
A Spousal Lifetime Access Trust (SLAT) is a type of irrevocable trust, meaning certain elements become fixed after its creation. This trust structure facilitates inter-spousal gifting while both partners are alive, allowing couples to fully utilize their combined lifetime gift-tax exclusions. For couples with assets surpassing $12.06 million in 2022, SLATs offer significant advantages. By moving assets into a SLAT, these funds exit the couple’s taxable estate, reducing their exposure to federal estate taxes. This strategy can lead to substantial tax savings 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.
Estate Tax Planning: Why Waiting Isn’t an Option
Proactive engagement in estate tax planning is essential. Federal regulations allow for the review of estate transfers made within three years of death. This means a portion of your assets could face retroactive taxation. Consequently, strategic planning in the present can yield substantial financial preservation for your estate and loved ones.
