Estate Tax Planning in Worthington, Ohio
You’ve worked tirelessly to build your wealth, and it’s only natural to want to pass it on to your loved ones intact. But your financial success story could end with a hefty tax bill. While estate taxes may seem like an unavoidable burden, the Jarvis Law Office has the tools and experience to customize estate tax planning strategies that reduce your tax liability and ensure wealth continues to grow for generations to come.
Contact our Worthington, 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 Worthington 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.
A Silent Threat to Your Wealth: The 40% Government Claim
Although federal estate taxes won’t affect the majority of Americans, they can be a game-changer for certain families. Strategic planning is essential to ensure your wealth benefits future generations. If the thought of surrendering 40% of your accumulated wealth to the Internal Revenue Service (IRS) and other government entities makes you uneasy, it’s time to take action.
Effective methods exist to reduce or even eliminate this substantial tax liability, but many need time to reach their full potential. Don’t delay in protecting your hard-earned assets.
Slash Estate Taxes with a Well-Planned Gifting Approach
Armed with in-depth knowledge of tax laws, your Worthington estate tax planning attorney can help you devise a powerful gifting strategy. The annual exclusion is a crucial tool for reducing your taxable estate. As of 2021, you can gift up to $15,000 per individual yearly. For example, you might give $15,000 in cash to one child and $15,000 in collectibles to another without surpassing the annual limit. When dealing with larger gifts, your lawyer can guide you on spreading them across several years to avoid triggering tax consequences.
Your 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: Securing Your Wealth for Future Generations
Irrevocable trusts offer another strategy to remove assets from your estate. You’ll designate a trustee to manage the trust, entrusting them with all decision-making power. Once property is transferred to the trust, it’s excluded from your estate and shielded from estate taxes. Upon your passing, your beneficiaries will receive these protected assets.
For individuals with significant wealth, an irrevocable trust could be a prudent financial move. Discuss the potential advantages with our Worthington estate tax planning lawyer. If you choose to proceed, our attorney can handle the trust’s creation on your behalf.
Optimizing Estate Plans with Spousal Lifetime Access Trusts
Spousal Lifetime Access Trusts (SLATs) are a form of irrevocable trust, characterized by limited amendability post-establishment. These trusts facilitate inter-spousal gifting during the couples’ lifetimes, allowing them to maximize their combined lifetime gift-tax exclusions. This approach is particularly valuable for couples whose assets exceed $12.06 million in 2022. By transferring assets to a SLAT, couples can effectively remove these funds from their taxable estate, minimizing federal estate tax exposure. This strategy can significantly reduce the estate tax liability following 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.
Reap the Benefits of Early Action in Estate Tax Planning
Initiating estate tax planning well in advance is a wise decision. The federal government scrutinizes estate transfers made in the three years prior to death. These transactions may face post-mortem tax implications. Consequently, implementing strategic measures now can lead to substantial savings for your estate and loved ones.
