Almost everyone has some form of asset. It could be money, property, stocks, 401ks, and so forth. It’s natural to want to arrange how your assets are distributed after you die or are legally incapacitated.
However, the estate tax is sometimes cripplingly high. If your estate value is over $11,180,000, your beneficiaries may be subject to heavy taxes on the assets left to them.
Work With an Estate Lawyer
Fortunately, there are several ways to avoid much of the cost involved in distributing your assets to your loved ones after you are gone. Here are a few of the things an estate planning attorney Cypress TX might advise you to do to minimize your estate taxes:
- Leave your property to your spouse
- Create a Transfer on Death account
- Leave your assets to others throughout your lifetime
- Gift money to a charity
Use Your Assets for Your Family
Assets left to a spouse are always untaxed. If you have other beneficiaries, you can go with a TOD account. Once proof of your death is received by your financial institution, they will automatically transfer the funds in this account to the beneficiary. Although the beneficiary will not be taxed on the amount they receive, be advised that your estate will.
You can help your loved ones before you pass away. Paying for a grandchild’s college or helping out with medical bills are some ways to do that. Plus, you can avoid taxes if you give in increments under $15,000.
Donate to Charity
Portions of an estate left to a charity are always untaxed. Check first to be sure that the charity is legally qualified.
These are just a few of the ways a good estate advisor might help you to reduce taxation on your estate. Whoever you are and whatever your financial position, providing for the best distribution of your assets is an important thing to consider. By reducing the taxes paid on your estate after you are gone, you are helping to ensure the protection of your wealth and the comfort of your loved ones.