Texas Tax Planning Lawyer
You may have to pay estate taxes, commonly known as the death tax, prior to your assets being distributed, as you would like. According to the latest figures from the IRS, 25 billion dollars were collected in estate taxes in one year. Fortunately, our state does not impose estate taxes for those who died after January 1, 2005. Federal taxes can be very expensive though, as much as 45-55%, which can be a large burden for your estate. These taxes usually have to be paid within 9 months of your death and are paid in cash. Many estates do not have such large amounts of cash, and assets frequently have to be liquidated, in order to pay the taxes that are due.
With proper estate planning, through trusts and other legal means, estate taxes may be reduced or even eliminated. An experienced Texas estate planning attorney may be of great service to you and your benefactors through industrious tax planning. One of first orders of business will be to correctly determine the current value of your estate in its entirety. Clausell Law Firm, PLLC specializes in treating each estate individually, as they all are unique in their needs. What you wish for your estate and its benefactors may vary greatly from someone else. With customized tax planning, we may be able to significantly take a bite out of any estate taxes.
Tax Handling Methods
There are several viable methods to reduce or eliminate estate taxes. You can remove assets from your taxable estate before your death. This will reduce your overall estate tax amount. Knowledgeable estate planning can utilize federal estate tax exemptions to reduce or eliminate your tax, if you are married. Tax-free gifts can be used to reduce the value of your estate and thus your taxes. You may be able to create a trust that becomes the owner of your life insurance. This can remove the life insurance from your estate and reduce the estate taxes you may have to pay. Clausell Law Firm, PLLC would like the opportunity to discuss these and many other methods, which can be used, to reduce or eliminate estate taxes.
A key purpose of estate planning is to ensure that your loved ones and other benefactors receive the benefits that you want, in the manner you desire. A burdensome estate tax can reduce your ability to achieve that purpose. Clausell Law Firm, PLLC would like to assist you to achieve your goals for the handling of your estate. One important way that this can be done is through reduction or elimination of an estate tax.