Planning for Inheritance Tax

How to Reduce or Eliminate Estate Taxes

If you are married, then through relatively simple estate tax planning utilizing credit shelter and QTIP trusts you can presently shelter up to $27,220,000.00 million from any inheritance tax and still retain ownership and use of your assets and income upon each spouse's death.

You can also make annual tax-free gifts to beneficiaries and to charity or medical / educational expenses. For year 2024, federal law allows you to gift up to $18,000.00 per person, per year, and if you are married, $36,000.00 per person per year, and you can make unlimited gifts to charity.

With proper trust planning, if you transfer life insurance policies to irrevocable life insurance trusts, then this will remove the death benefits of any existing life insurance policies from your estate. A qualified personal residence trust can remove your home from the estate at a discounted value, and you may continue to live there.

Proper Inheritance Tax Planning Is Important

Finally, a family limited partnership lets you begin transferring assets to children now, in order to reduce your taxable estate. Through proper planning, the family limited partnership serves to create discounted valuations of assets including business, farm, and real estate, or stock designed to keep the net taxable estate below the exemption amounts. In addition, a family limited partnership can protect assets from future creditor claims while you keep control. If you are residing in Hollywood, Davie, Cooper City, or Weston, Florida, my firm can assist you through this process! Seek the representation of a Pembroke Pines estate planning attorney from my firm in your case today.