Tax Planning Attorney in Grand Junction
Do You Need Help with Tax Planning?
Most of us have worked our entire adult life building a nest egg to pass on to our children and grandchildren. However, without proper tax and Estate Planning a large portion of this nest egg may wind up in the hands of Uncle Sam or attorneys. The good news is that Estate Planning is much easier than you think, and a thoughtfully drafted plan is cost-effective, saving you and your heirs thousands of dollars.
The Federal Estate Tax and How to Avoid It
The federal estate tax is a tax imposed on estates valued over a dollar amount determined by Congress. Because that amount has changed frequently over the last 15 years, tax avoidance planning can be difficult. For example, the estate tax exemption was $675,000 per person in 2001; $2,000,000 per person in 2008; $3,500,000 in 2009; $5,000,000 in 2011 and $5,250,000 in 2013.
Fortunately, there is consensus in Congress that the estates of most couples should not be taxed until the second spouse dies. This deferral of the federal estate tax is referred to as "the Unlimited Marital Deduction" and it applies only if both spouses name the other as the beneficiary of his or her estate.
Unfortunately, the Unlimited Marital Deduction is only available to married couples (not co-habiting couples or single persons) and if the value of the estate exceeds the exemption, the estate tax will be due at the death of the surviving spouse.
Tools for Reducing Your Estate Taxes
Proactive Estate Planning can significantly impact your exposure to the federal estate tax including:
- Aggressive gifting plans
- Establishing an Irrevocable Life Insurance Trust
- Establishing Living Revocable Trusts for both spouses
- Creating a Charitable Remainder Trust
- Creating a Family Limited Partnership (FLP) or Limited Liability Company (LLC)
A combination of these Estate Planning tools will protect the majority or all of your estate from federal estate tax.
Grand Junction Tax Planning Lawyer
The Law Offices of James A. Littlepage , a Grand Junction Estate Planning firm, has been helping clients to reduce the impact of federal estate taxes with effective, straightforward tax planning since 1993. Mr. Littlepage has prepared over 2,000 estate plans and recently was recognized with a 2015 and 2016 Five Star Estate Planning Attorney℠ award. In 2014, 2013, 2012, 2011 and 2010 he received the Five Star Wealth Manager℠ award, as seen in 5280 and ColoradoBiz magazines. For assistance in avoiding the federal estate tax contact our Grand Junction office for a complimentary 30 minute consultation for estate planning and probate.