LIFE’S TWO CERTAINTIES: LIFE & DEATH.
There are only two certainties in life—death and taxes. Unfortunately, for some people, those two things go hand-in-hand. As of the latest update, the federal estate tax exemption stands at $13.61 million, and it continues to rise every year. You won’t owe federal estate taxes unless your estate is valued at more than $13.61 million dollars.
That makes estate taxes a non-issue for many people, but there’s still a great need to plan for many others. You’ve probably worked very hard in your lifetime to accumulate your wealth. You want that wealth to go to your family, friends, or charitable causes—not to the government. However, if you are required to pay estate taxes and fail to plan, that’s just what may happen.
Who is affected?
- Individuals with a private net worth exceeding $13.61 million and are unmarried.
- Married individuals with assets over $13.61 million, especially with children from previous marriages.
- Owners of businesses valued above the exemption threshold.
Residents of states with estate or inheritance taxes, including Washington, Oregon, and others.
ADDRESSING
ESTATE TAXES.
Contrary to popular belief, estate taxes are not inevitable. With strategic planning, it’s possible to mitigate or even reduce your estate tax liability significantly. Tax professionals employ various techniques to lessen the impact of estate taxes, making the financial burden much more manageable. Here’s just a sampling of some of the ways in which tax planners manage estate taxes:
business transition
Early planning for business succession can mitigate tax consequences.
Giving
Strategic gifting during one’s lifetime can minimize estate size and tax burden.
trusts
Certain trusts enable asset transfer out of the estate, reducing tax liability.
SELECTING A TAX PLANNER.
Finding the right tax planner—someone who’s not only knowledgeable but also specializes in your specific financial goals—is crucial. Whether it’s setting up a giving program for your family, planning charitable contributions, or ensuring your business legacy, the expertise you need varies. Look for clarity and simplicity in communication, avoiding unnecessary jargon that complicates understanding.
If your goal is expert guidance in estate or charitable tax planning strategies, reach out to Smolin to find a tax planner who aligns perfectly with your needs and simplifies the complex world of tax planning.
Let’s Talk.
Smolin’s team is ready to assist you with your Estate, Trust and Gift planning needs. Our Tax Services team stays up-to-date about changes in state and federal tax laws, and we’re constantly evaluating tax planning strategies so we can provide you with relevant advice.