They say two things are certain in life, death and taxes. Depending on how much money you have when you pass away, the IRS can even come in demanding taxes after you are gone! Proper estate planning can help you reduce how much will be owed in estate taxes though. You just need the help of a Des Moines estate planning lawyer.
Get Help TodayGiving to charity can help you reduce your estate taxes. The more you give away, the less of an estate you have, so making donations can be quite advantageous. Plus, you get to support causes you care about and help others. We can help you figure out if charitable trusts or another method of giving can work well for you and your estate.
There are also other kinds of trusts that could be used to help lower estate taxes. A living trust allows you to transfer assets into it while retaining control over your estate. Marital trusts are another good option for some people who have a living spouse. There is even a trust that can help you pass tax savings onto a beneficiary while you pass on your personal residence.
Your life insurance policy, or policies, can also be handled by a trust if you are looking for ways to lower your potential bill for estate taxes. These policies can be placed outside of your taxable estate in something known as an irrevocable life insurance trust, or ILIT.
It’s important to remember that “irrevocable” means that you cannot change the rules of the trust or how it gives out money, so you should be sure that this is what you want to do with these policies. The ILIT will preserve any payouts entirely for your family.
You can also lower your estate taxes by giving away some of your money now. We are not just talking about charitable donations. You can actually give away a certain amount of your money to your beneficiaries each year without worrying about gift taxes.
You and your spouse could each gift $17,000 to an individual without the IRS getting involved. This means that you can give away $34,000 to one person in a year. Multiply that by gifting money to a few more children, grandchildren, and other loved ones, and you can reduce the size of your estate and potential tax burden each year.
Making a comprehensive estate plan on your own. Instead, contact Herting Law, PLLC and schedule a consultation. We can tell you more about how our estate planning lawyers can help you leave behind assets for your beneficiaries without burdening them with large tax bills.
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