Meurer Law Offices, P.C., serves clients in Denver, Greenwood Village, Centennial, Aurora, Littleton, Englewood, Arvada, Westminster, Broomfield, Parker, Castle Rock, Lone Tree, Sheridan, Elizabeth, Kiowa, Lakewood, Parker, Highlands Ranch, Denver County, Arapahoe County, Adams County, Douglas County, Jefferson County, Colorado.
PRACTICE AREAS - ESTATE PLANNING
Estate Planning Services
Reducing Or Eliminating Estate Taxes By Removing Assets From Your Estate
A great way to reduce Estate taxes is to reduce the size of your Estate before you die. You probably already know who you want to have your assets upon your death. If you can afford it, give them some assets now and save Estate taxes. Appreciating assets are usually best to gift, because any future appreciation will also be out of your Estate. One disadvantage to gifting is your beneficiary misses the opportunity to receive a stepped-up tax basis in the property when you die. When your beneficiaries sell the assets you gifted to them, depending on the asset basis on the date of the gift, they may have to pay capital gains tax. But the top capital gains rate is only 15% (for assets held at least 12 months) which is less than Estate taxes of 45%. A second problem with gifting is gifts are irrevocable so you cannot change your mind latter.
Each year you can give a tax free gift up to $13 thousand ($26 thousand if married) to as many people as you wish. So if you give $13 thousand to each of your two children and five grand children, you will reduce your Estate by $91,000 (7 beneficiaries x $13,000). if your spouse joins in the gifting, you could give a tax free gift of $182,000. The amount of the tax free gift is tied to inflation and may increase every few years. If you give more than this amount, the excess will be considered a taxable gift and will be applied to your $1 million gift tax exemption. Charitable gifts are unlimited. Gifts for tuition and medical expenses are also unlimited if you give directly to the institution.
Estate Planning techniques to remove assets from your Estate include the following:
- Creation of an Irrevocable Life Insurance Trust (ILIT)
- Creation of a Qualified Personal Residence Trust (QPRT)
- Creation of a Grantor Retained Annuity Trust (GRAT)
- Creation of a Grantor Retained Uni-Trust (GRUT)
- Creation of a Family Limited Partnership (FLP)
- Creation of a Limited Liability Company (LLC)
- Creation of a Charitable Remainder Trust (CRT)
More Strategies
Meurer Law Offices
5347 S. Valentia Way, Suite 220
Greenwood Village, Co. 80111
303.991.3544
Estate Planning Attorney
FREE Consultations
MEURER LAW OFFICES, P.C.
5347 South Valentia Way, Suite 220
Greenwood Village, CO 80111
Phone: 303-991-3544
