What Is An Advance Estate Planning Technique?
Currently, the estate and inheritance tax (EIT) is triggered upon the death of each person. In one person’s lifetime, they are able to give a specified amount of money to their heirs free of the EIT. In 2016, the amount is $5.45 million. This amount is subject to increases based upon cost of living adjustments.
For estates that are valued over the $5.45 million dollars (2016), or $10.9 million (2016) for a married couple, they can avoid paying any EIT if their estates fall within those limitations. The IRS updates these amounts yearly.
At The Law Office of Matthew C. Yu, we can provide current information about the tax liability facing your estate. The maximum tax rate fluctuates, but has been as high as 45 percent. Our attorneys provide quality comprehensive estate planning services to individuals and families across the South Bay from our office located in Torrance.
Reduce Estate And Inheritance Taxes With Proper Planning
The use of advance estate planning techniques has significantly changed over the past decade. If you worry about the effect of estate and inheritance taxes, there are planning techniques that provide additional avenues to reduce or eliminate this EIT. We can reduce the EIT by using discounting methods, freezing methods, charitable methods and marketability methods such as:
- Intentionally defective trusts
- Grantor trusts
- Charitable trusts
- IRA trusts
- Family limited partnerships
- Private foundations