How to Minimize Estate Tax
Gradually give money away to your individual family members or loved ones., Give money to your favorite charity., Put your assets in a trust., Form a Limited Liability Company (LLC) or a Family Limited Partnership (FLP)., Purchase life insurance...
Step-by-Step Guide
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Step 1: Gradually give money away to your individual family members or loved ones.
As of 2013 the maximum amount that can be gifted, tax-free is $14,000 annually, or $28,000 if the gifter is a married couple with a total lifetime value of $5.12 million (or double for couples).There is no limit on the possible number of recipients. -
Step 2: Give money to your favorite charity.
Most millionaires and billionaires have some sort of charitable planning strategy that reduces their financial profile during life to minimize taxes and then gifts the remainder to a charity of choice on their passing.
To qualify as a tax deduction the charity must be registered as a 501(c) non profit organization , Items in a trust immediately transfer ownership, are tax-exempt and additionally are protected by the court's jurisdiction from things like lawsuits and creditors.
There are over ten different kinds of trusts to suit each kind of recipient and property, including ones for those with special needs and for educational pursuits., This allows you to immediately transfer assets of high value such as a business or stocks immediately to your heirs, while retaining control over important business decisions. , The settlement on your death can be put towards the estate tax bill if one is unavoidable. -
Step 3: Put your assets in a trust.
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Step 4: Form a Limited Liability Company (LLC) or a Family Limited Partnership (FLP).
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Step 5: Purchase life insurance through an irrevocable living trust.
Detailed Guide
As of 2013 the maximum amount that can be gifted, tax-free is $14,000 annually, or $28,000 if the gifter is a married couple with a total lifetime value of $5.12 million (or double for couples).There is no limit on the possible number of recipients.
Most millionaires and billionaires have some sort of charitable planning strategy that reduces their financial profile during life to minimize taxes and then gifts the remainder to a charity of choice on their passing.
To qualify as a tax deduction the charity must be registered as a 501(c) non profit organization , Items in a trust immediately transfer ownership, are tax-exempt and additionally are protected by the court's jurisdiction from things like lawsuits and creditors.
There are over ten different kinds of trusts to suit each kind of recipient and property, including ones for those with special needs and for educational pursuits., This allows you to immediately transfer assets of high value such as a business or stocks immediately to your heirs, while retaining control over important business decisions. , The settlement on your death can be put towards the estate tax bill if one is unavoidable.
About the Author
Jerry Cooper
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