David M Daggett CPA is a tax professional who assists individuals and
businesses with their tax needs. He specialized in estate planning.
Many people aren’t aware of the benefits of estate tax planning and how
it can help their loved ones avoid paying a lot of money on the things
they inherit. If you have a will or estate plan, make sure you are
considering the taxes as well. Here are some tips for estate tax
planning.
Use Exemptions
If you are married, you should take both exemptions. One exemption will be for yourself and the other for your spouse. You can leave your spouse money in the estate and when he or she dies, there will still be an exemption that will help lower the amount of taxes due on the estate. The spouse can also distribute assets while he or she is still alive to avoid the estate tax.
Reduce Assets
The more your assets are worth, the higher the estate tax will be. To reduce the estate tax for your loved ones you can reduce the value of your assets. You can do this by gifting the assets to the people you want to have them. This allows you to have control over your assets, distribute what you want and keep what you need. After your death, the estate tax will only be based on the assets that are left.
Trusts
There are many different trusts that can help reduce the estate taxes your loved ones must pay if they inherit your estate. A tax accountant can explain the various type so trusts that are available to you and how each one will affect your estate and those who inherit it. Some common types of trusts include Irrevocable Life Insurance Trusts, Qualified Personal Residence Trust, Grantor Retained Annuity Trust, and Charitable Trusts.
Life Insurance
Instead of leaving your money to your loved in your estate, you should use your assets to purchase life insurance. You can choose who will become the beneficiaries of your life insurance policy and you don’t have to worry about your loved ones having to pay estate taxes on the money they inherit from the policy. There are many different life insurance options to choose from.
David M Daggett CPA has always enjoyed working with numbers and helping people with their taxes. He has many clients and encourages them to consider tax planning for improving their estate plans. Many people do not realize how much their loved ones may have to pay in estate taxes. There are ways to reduce those taxes and possibly eliminate them completely. Make sure you discuss your options with your tax accountant.
Use Exemptions
If you are married, you should take both exemptions. One exemption will be for yourself and the other for your spouse. You can leave your spouse money in the estate and when he or she dies, there will still be an exemption that will help lower the amount of taxes due on the estate. The spouse can also distribute assets while he or she is still alive to avoid the estate tax.
Reduce Assets
The more your assets are worth, the higher the estate tax will be. To reduce the estate tax for your loved ones you can reduce the value of your assets. You can do this by gifting the assets to the people you want to have them. This allows you to have control over your assets, distribute what you want and keep what you need. After your death, the estate tax will only be based on the assets that are left.
Trusts
There are many different trusts that can help reduce the estate taxes your loved ones must pay if they inherit your estate. A tax accountant can explain the various type so trusts that are available to you and how each one will affect your estate and those who inherit it. Some common types of trusts include Irrevocable Life Insurance Trusts, Qualified Personal Residence Trust, Grantor Retained Annuity Trust, and Charitable Trusts.
Life Insurance
Instead of leaving your money to your loved in your estate, you should use your assets to purchase life insurance. You can choose who will become the beneficiaries of your life insurance policy and you don’t have to worry about your loved ones having to pay estate taxes on the money they inherit from the policy. There are many different life insurance options to choose from.
David M Daggett CPA has always enjoyed working with numbers and helping people with their taxes. He has many clients and encourages them to consider tax planning for improving their estate plans. Many people do not realize how much their loved ones may have to pay in estate taxes. There are ways to reduce those taxes and possibly eliminate them completely. Make sure you discuss your options with your tax accountant.
