Golden Gift and Estate Taxes Lawyer

It’s only natural to look for legal ways to limit your estate tax liabilities or make sure that you don’t have to pay gift taxes. You’ve spent your life working so hard for everything you have accumulated and earned, and the last thing we want is for your estate to have to pay unnecessary taxes, which would come out of all of the assets you leave behind. At Colorado Estate Planning Law Center, we can help make sure your estate doesn’t pay any more taxes than necessary. It’s essential to contact an experienced Golden, CO gift and estate taxes lawyer to develop a plan to minimize your tax liability so you can make sure your family is taken care of once you pass away. Call our office at (303) 420-2863 or contact us online for a free initial interview.

What Is An Estate Tax?

To fully understand how to minimize your tax liability, it’s important to know what an estate tax is. An estate tax is a tax that is imposed when estates are transferred after the owner’s death. Whether the estate is transferred according to intestacy laws or through a will, estate tax still applies. Many people think that everything in their estate is taxed once they pass away, but many assets are exempt, and many people don’t have to pay any estate taxes at all unless the value of their estate is very high.

Is There Estate Tax in Colorado?

Depending on the state you live in, you could have to pay a federal estate tax and also a state estate tax. Fortunately, there is no state estate tax in Colorado, so you just need to make sure you’re abiding by all the federal estate tax laws.

What Is the Federal Estate Tax?

While there is no Colorado state estate tax, you could still owe federal estate taxes. In 2021, you do not have to pay estate tax unless your estate is valued at more than $11.7 million if you’re single and $23.4 million for a married couple. This means anything above that limit will be taxed. The top estate tax rate is 40 percent.

What About Capital Gains at Death?

Currently, when a person passes away, any assets held at the time of their death are not subject to capital gains tax. This is referred to as the “step-up basis.” The step-up basis is a provision that adjusts the value of the inherited asset when it is passed on after death to its fair market value, or the price that the asset would be sold for in a fair market. This helps to reduce or eliminate any capital gains taxes. For example, you purchased your property 20 years ago for $50,000. Today, it’s worth $250,000. If you sold it before you passed away, you’d likely be responsible for capital-gains taxes. However, if you pass away and pass the property onto someone else, it will be calculated based on what it’s worth today, and your heirs wouldn’t owe capital gains taxes.

Contact our Golden, Colorado Gift and Estate Taxes Attorneys

If you have any questions or concerns about gift or estate taxes, we are here to answer them. Our goal is to protect your assets and ensure that you don’t pay any unnecessary taxes. We care about all of our clients and the communities we work in. Don’t hesitate to contact us. Call our Golden estate planning attorneys today at (303) 420-2863 or contact us online for a free initial interview.