When our clients are concerned about how estate and gift taxes might impact beneficiaries, we propose strategies to potentially avoid them altogether, or at least minimize them with proper planning. Married couples and individuals with assets that exceed the state exemption limits can utilize trust strategies that allow for much higher tax exemptions. Real estate investors with properties in markets where property values have skyrocketed will also want to consider estate tax planning.
ESTATE & GIFT TAX PLANNING
Working with a client on setting-up a $20M tokenized real estate lending master feeder fund (US/Cayman), including potential tax implications, application of US securities and investment regulations and worldwide treatment of the fund tokens
Gift Taxes and Estate Planning
Unless money is donated to a charitable organization or make a similar non-taxable gift, the federal government is allowed to tax gifts in excess of the $15,000 annual exclusion. According to the Internal Revenue Service, examples of gifts that will be taxed include “any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money’s worth) is not received in return.” This means the IRS can tax any gift in excess of the $15,000 annual exemption.
Some exceptions do apply to the gift tax:
- Spousal gifts
- Gifts that re less than the maximum annual exclusion
- Gifts for pay for medical or education expenses
- Gifts given to a political organization for its use
Planning an Individualized Estate Tax Strategy
Executed properly, providing a generous inheritance for grandchildren and other family members leaves a wonderful legacy, but it is preferable when this can be done without leaving these gifts vulnerable to significant taxation.
Simply put, an effective transfer of wealth to beneficiaries should be done in the most tax-efficient manner. Without a solid plan, it is likely that taxes will reduce an estate’s value.
Our experienced estate tax attorneys will ask all the right questions and pay attention to every detail with regard to the assets in our clients’ estates. Our attorneys are adept at using these questions to provide insight that leads to confident guidance for our clients.
At Dilendorf Law Firm, we believe that full understanding of an individual client’s personal needs and business goals is the only way to achieve a successful estate plan. We always consider the big picture, including family dynamics, health, business and personal objectives, liabilities, and tax situation. Our comprehensive estate plans are fully customized, reliable, and professionally reviewed to cover every detail.
- Estate and Gif Tax FAQs – Internal Revenue Service
- Federal Estate and Gift Taxation
- Estate Tax Schemes – Senate Committee on Finance
- 26 U.S. Code Subtitle B – Estate and Gift Taxes
- Estate and Gift Taxes – Internal Revenue Service
- Tax Planning for Estates Under the New Estate and Gift Tax Regulations
- Estate and Gift Tax Incentives and Inter Vivos Giving
- Estate Tax – TAX.NY.gov
- Explaining the Estate Tax – The United States Senate Committee on Finance