If chosen wisely, with the help of an experienced estate planning attorney, a trust can be a great chance to minimize taxes on your estate.
Forbes’ recent article entitled “Estate Planning Opportunities: How Trusts Can Minimize Taxes On Your Legacy,” explains that trusts are legal arrangements that benefit causes or people you choose down the line. They vary in how they are activated and accessed, according to these basic types.
If you have concerns about taxes, consider an Irrevocable Life Insurance Trust (ILIT). This is used to manage life insurance for your beneficiaries, while offering you insulation from your creditors and reductions on your taxable estate. A life insurance policy’s “death benefit” is usually protected from estate tax already, but even policy premiums can be structured as tax-free gifts inside the ILIT.
There’s also the Spousal Lifetime Access Trust (SLAT) can help married couples achieve similar tax reductions while helping them maintain indirect access to the cash values in each other’s life insurance policies. This is essentially an ILIT with added access during the spouse’s lifetime for health, education, maintenance, support, and under any other specified terms for withdrawal.
When properly structured, assets belonging to an Intentionally Defective Grantor Trust (IDGT) will also transfer to your beneficiaries free of estate tax.
With the help of an experienced estate planning attorney, you can look at the best opportunities for you to protect your assets from unnecessary charges, leaving behind as much of your legacy as possible.
Schedule a meeting- The Law Offices of Claude S. Smith, III
Reference: Forbes (May 23, 2022) “Estate Planning Opportunities: How Trusts Can Minimize Taxes On Your Legacy”
Legal problems are extremely stressful, especially when your family, your health, or your freedom are at stake. At this point in time, you may not even be sure what kinds of questions you need to ask a lawyer, but that’s entirely normal. Whether your situation involves family law, estate planning, elder law, a criminal charge, or a personal injury, we will start by giving you all the information you need.
The way we see it, you deserve to get this information directly from an expert. That’s why we make it easy for you to get in touch with your lawyer, and we never ask you to sit down with a paralegal or assistant instead.
As our relationship continues, we will keep you updated about the status of your case every step of the way. Your lawyer will reach out regularly to tell you about any new developments, and he will also be happy to answer any questions you have throughout the process.