How Estate Planning Can Help With Taxes

Federal taxes that come into play during your estate planning include the estate tax, the gift tax, and the generation-skipping transfer tax. The estate tax dictates that your transferable assets can be subject to a tax if they exceed the federal exemption limit. The gift tax dictates that anything you give away in your lifetime, including your estate, may be subject to a tax if they exceed the federal exemption amount. The generation-skipping transfer tax may come into play if you leave anything to a relative that is two or more generations younger than you. It is a good idea to hire an estate planning lawyer to help you better understand these taxes.

State taxes on estates vary widely. Some states will add an additional gift or estate tax on top of the federal one. Some states consider inheritance to be taxable income. Some states have an inheritance tax that kicks into play when a beneficiary receives an inheritance. Talk to a certified estate planning lawyer, like the experts at Zaremba Center for Estate Planning & Elder Law to learn what state taxes you may have to deal with.

There are a couple of ways to minimize your estate tax burden. One thing you can do is gift a certain amount of your estate to your heirs while you are still alive. You may also be able to use irrevocable trusts to remove assets from your estate. A certified estate planning lawyer can help you navigate the process and ensure your heirs receive as much as they can from you.

Tax law and estate planning are complicated. A certified estate planning lawyer can help you navigate this confusing process and ensure you leave behind as much as possible to your loved ones. If you are looking for an estate planning lawyer in Williamsburg, you can reach out to the Zaremba Center for Estate Planning & Elder Law. We can help you get all your affairs in order and ensure your loved ones are taken care of when the time comes.