Estate Tax Planning

Estate Tax Planning

 

Although California has no death tax, the federal death tax can be substantial. The larger your estate, the more carefully you must plan and choose from many options, depending on your specific circumstances and objectives.

Eliminating the 40% Death Tax

  • Our estate plan solutions may involve any of the following approaches:
  • Use of revocable living trusts and irrevocable life insurance trusts to transfer assets out of your estate while maintaining control and beneficial use
  • Qualified personal residence trusts, especially where your primary residence represents a significant asset
  • A/B bypass trusts, dynasty trusts, and generation skipping trusts to avoid and manage the complications presented by California community property law
  • Charitable remainder trusts, charitable lead trusts, or gifts
  • Community property agreements, prenuptial agreements, and postnuptial agreements

A Dual Approach to Managing Liability

There are essentially two main approaches to managing estate tax liability: transferring assets out of your estate through trusts or gifts and maximizing the value of your federal estate tax exemptions. Some of the instruments described above emphasize only one approach, while several cover both. What’s right for you will depend upon your goals, your family, and the nature and value of the particular assets you hold.

An important feature of sound estate tax planning is integrating tax management strategies into a broader estate plan without overwhelming or distorting it. Unintended and unfortunate consequences, such as the disinheritance of one’s own children, can result from too close a focus on tax planning without sufficient attention to your other wealth transfer objectives.

We are estate planning attorneys that have the necessary experience to find the estate planning solutions that will allow you and your family to reduce or to eliminate the voluntary death tax.

The 40% death tax is a “voluntary” tax. You can plan your estate to reduce or totally eliminated the death tax, the inheritance tax, and the estate tax. What type of plan do you want?

Call us at 949-756-0684 for a free consultation in either our Irvine or Long Beach office.