Estate Taxes: Can I avoid Paying them?
In the simplest of terms, the "estate tax" is a tax on the amount of wealth you possess upon your death. Each person receives an exemption on the first $5,250,000 in their estate.
There are effective ways of reducing your estate tax liability. They vary in complexity and require advice from qualified legal and tax counsel. Below are some options that might have relevance in your particular situation:
- Create a plan that protects both spouse's applicable estate tax exemptions;
- Establish an appropriate lifetime gifting program;
- Consider special charitable giving trusts;
- Remove life insurance from your taxable estate by creating a special life insurance trust;
- Remove the value of your home from your taxable estate by creating a qualified personal residence trust;
- Form a family holding company to hold certain assets and use the company as a gifting vehicle;