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 Using Both - Exemptions
If you are married, you have the opportunity to use both Estate tax exemptions. In 2009, rather than having $3.5 million exemption, you and your spouse could protect $7 million.
If your spouse is a U.S. citizen, you can leave your spouse an unlimited amount when you die with no Estate tax. However, this can be a tax trap because it wastes your Estate tax exemption. For example, assume that John and Mary together have an Estate of $7 million and they both die in 2009. John dies first. He leaves everything to his wife Mary, so no Estate taxes are due. When Mary dies her Estate of $7 million uses her $3.5 million exemption. The remaining $3.5 million is taxed at 45%. The tax bill on the remaining $3.5 million is $1,575,000.00.
If instead John and Mary plan ahead, they can use both of their Federal Estate tax exemptions and pay no Estate taxes. John and Mary could create a Living Trust inserting a tax planning provision that splits their $7 million Estate into two Trusts of $3.5 million each. When John dies, his Trust uses the $3.5 million exemption. When Mary dies, her Trust uses her $3.5 million exemption. This reduces their taxable Estate to $0 so the full $7 million can go to their loved ones, a savings of $1.575 million.
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Meurer Law Offices
5347 S. Valentia Way, Suite 220
Greenwood Village, Co. 80111
303.991.3544
Estate Planning Attorney
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MEURER LAW OFFICES, P.C.
5347 South Valentia Way, Suite 220
Greenwood Village, CO 80111
Phone: 303-991-3544
