Advanced Estate Tax Planning
Did you know that:
- The estate tax is separate from the income tax, and is paid on the net value of all your assets, including life insurance, owned at your death in excess of the exempt amount?
- The estate tax rate is currently 45%?
- For most families, estate taxes are totally voluntary? Only people who fail to plan will end up paying estate taxes.
In every essential estate plan we prepare, our clients can save up to approximately $1,000,000 in estate taxes.
For our clients with significant life insurance, we can help them save 45 cents on every dollar with an irrevocable life insurance trust (”ILIT”). An ILIT is designed to be the owner and beneficiary of your life insurance policies. Assuming the trust is properly structured and administered, the life insurance is not part of your estate at your death because you don’t own it. Instead, 100% of the insurance proceeds are available to do what you intended - to provide for your loved ones.
If you have a very large estate, it is worth considering other estate tax avoidance strategies. Many of these techniques involve giving assets to your loved ones during your life at a reduced value for tax purposes, removing the assets and their future appreciation from your estate.
To schedule a no-charge initial consultation with a Germantown, Tennessee Attorney, please contact us.
