Denver Federal Estate Tax Lawyer
You may not be aware, but there are always ways to minimize or eliminate the estate tax. Sometimes, though, you have goals for your estate that go beyond minimizing taxes. Not all of the available estate minimization techniques will suit your other goals. That’s where we come in.
When you consult with an experienced Colorado estate tax attorney at Brady, McFarland & Lord, LLC, they’ll make sure to come up with a plan that suits your needs for your non-tax goals and your desire to minimize estate taxes. If you have any questions about federal estate taxes, do not hesitate to call our Denver federal estate tax lawyers at (303) 420-2863 or contact us online. We are here to listen and serve your needs.
Why You Need a Denver Federal Estate Tax Attorney
Laws surrounding federal estate taxes can be quite confusing, and most people who don’t work in this industry are not well-versed in the details. While it’s always possible to try to research on your own, it’s essential to make sure you’re getting the correct information. Additionally, the tax laws change, and it’s crucial to make sure your information is current. When you hire an experienced estate tax lawyer, they will be able to answer all of your questions. As recent as March 2021, there was a proposal to change some of the federal estate and gift taxes.
Maximizing Your Goals, Minimizing Your Tax Liability
By offering proper legal tax advice, we make sure that your property will be divided according to your desires and not dictated by the government. In the current absence of an estate tax, many plans prepared in the past contain formulas for asset division, estate tax avoidance, and charitable giving that are no longer valid. If you are a single person or a married couple with complex tax planning needs, we encourage you to meet with us as soon as possible to review your estate plan and make any necessary updates.
Many people have the misconception that estate planning is only for middle-aged or older people with established families. Yet, married couples with young children can have as much or more to lose if their estate plan doesn’t protect their children. That’s why everyone, young and old, should have a solid estate plan that is updated regularly. Your estate tax planning should be fresh, flexible, and able to withstand any challenges presented by planned legislation. Our law firm can suggest approaches that will meet your planning objectives with the least amount of tax impact.
Examples of Ways to Structure Your Assets
One of our jobs is to make sure you structure your assets in a way that legally allows you to pay the least amount of estate taxes possible. Our experienced estate tax planning lawyers will explain how to achieve your goals through tools such as:
Gifts: One way to ensure you don’t have to pay as much in estate taxes is by giving gifts. As of 2021, you can gift an individual up to $15,000 without paying a gift tax. This is $15,000 per person you decide to gift to, not $15,000 total. Over the course of your lifetime, you’re permitted to gift up to $11.7 million without paying gift taxes. If you have a large estate, for example, $18 million dollars, you can gradually pass on gifts and assets without having to pay the gift tax.
Wills: If you don’t have a will, your entire estate will likely end up in probate. This can cause your family members a significant amount of money that will either come out of your estate or out of their own pockets. Having a will can help reduce this cost.
Trusts: Certain types of trusts can be set up in a way that lets you reduce the size of your estate, therefore reducing the amount of taxes that will be owed once you pass away. This can be a tremendous help to your family members and any other heirs to your estate. Generally speaking, trusts are one of the most effective legal ways that you can reduce the value of your estate and the amount of taxes that will be owed upon your passing.
Family Limited Partnerships: Family limited partnerships can be established as a means to reduce the size of your estate, therefore reducing estate taxes. Creating a family limited partnership establishes a general partnership and then typically makes family members limited partners. As the general partner, you’ll still be able to make all of the decisions, but your partners – children or other family members – will receive a stake in the company, reducing the value of your assets.
Irrevocable Life Insurance Trusts: If you’re concerned about leaving your loved ones in a precarious financial situation once you pass away, we can try to help you by setting up an irrevocable life insurance trust. The purpose of an irrevocable life insurance trust is to hold your life insurance policy and avoid estate taxes. In this case, the trust owns the policy and pays the premiums. Therefore, it will not be considered part of your estate when you pass away because the trust owns it.
We Can Help With All of Your Estate Tax Concerns
Our Arvada estate planning attorneys at Brady, McFarland & Lord, LLC can help you with all of your estate tax questions and needs. We can recommend techniques that minimize or avoid estate taxation even during this current time of uncertainty while the U.S. Congress decides if and how it will revise the current federal estate tax law. We serve clients in Colorado counties such as Arapahoe, Denver, Jefferson, Adams, Clear Creek, and Gilpin. You have the power to create something useful for those you care about most, and we want to help you do this. Call our Arvada law office at (303) 420-2863 or contact us online to set up a free initial interview. We are here to listen and serve your needs.