Most people want to do as much as possible for their loved ones throughout their lives and at the time of their passing. So, you may think that accumulating resources for the well-being of your loved ones is a good deed that should go unpunished.
While it is enriching to leave behind a robust legacy, when your assets reach a certain level you do have to concern yourself with the federal estate tax. This death levy carries a 35% rate at the present time, and if that was not enough it is going up to 55% next year as current laws stand.
This year the first $5.12 million of your estate can pass to your heirs free of the estate tax, but next year this exclusion goes all the way down to $1 million so it is a concern for millions of Americans.
Even your life insurance policies are subject to the estate tax, and this is something to take into consideration. One way to save estate taxes would be to have a life insurance trust purchase and hold your policies. Your selected heirs can be the beneficiaries, but since you don’t own the policies personally they are not subject to the estate tax.
Steps like this can mitigate your estate tax exposure, but you may not even know this and other options without discussing your estate planning with a professional. If you are serious about preserving your wealth for future generations, take action right now to arrange for a consultation with a seasoned estate planning lawyer in the Covington, KY area.
John’s practice focuses on the use of Wills and Living Trusts in Estate Planning to help individuals protect their families and preserve their legacies after their deaths, but his practice also focuses on the critical issues of protecting individuals with dementia or other diminished capacity, assisting individuals in qualifying for Medicaid and other government benefits to offset the costs of long-term care, and providing special needs planning.
John is admitted to practice law in North Carolina, South Carolina, Kentucky, and Ohio, and he is accredited by the Department of Veterans Affairs.
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