A big part of estate tax planning is reducing inheritance tax. There are a number of devices you can put into place to reduce or avoid the inheritance taxes. Because each person’s circumstances are unique, not every inheritance tax avoidance strategy works for every person.
Examples of some estate tax planning strategies that can be effective are:
- Spousal Trust Planning:
Keeping the surviving spouse’s income and assets protected, spousal trusts can be a valuable tool to preserve family assets for a spouse’s benefit while ensuring that the deceased spouse’s wishes are carried out at the surviving spouse’s death. - Charitable Trusts:
Making a gift to a charity, especially a substantial gift, using a charitable trust allows you to do it in a way that can give you significant tax benefits. - Family Limited Partnerships:
As a family business owner, creation of a family limited partnership is a good estate tax planning strategy; family limited partnerships can be good ways for parents to make gifts to their children and gain tax benefits. - Generation-Skipping Transfers:
A generation-skipping transfer uses trusts to skip the payment of taxes without skipping the benefits of the estate to the next generation.
Speak to an Estate Planning Attorney About Estate Tax Planning
The Law Offices of Eric A. Rudolph P.C. can help advise you on estate tax plan strategies, including spousal trust planning, charitable trusts, family limited partnerships and generation-skipping transfers.