<#if page.ID == "About"> In This Section
<#else> View Our Practice Areas

Reducing or Eliminating Estate Taxes: Smart Strategies

Will you be leaving substantial assets to your heirs? Then you are probably concerned about estate taxes and the bite they'll take out of your multi-million dollar estate. Not to mention state taxes that your heirs may have to pay. Our contributors have a few savvy strategies that can help lower your estate tax burden.

The annual gift exclusion is one of the strategies discussed in The Motley Fool's article, "3 Smart Strategies Designed to Reduce or Eliminate Estate Taxes." This allows you to pass some of your estate on to heirs tax-free every year while you are still living, at the same time it decreases the value of your estate.

Because your home may be your biggest asset, you may want to reduce the amount of estate tax you pay on your home, which will be a money-saver for your family. One strategy uses what's known as a Qualified Personal Residence Trust (or "QPRT"). To use the QPRT, you would transfer your home into a trust and designate the length of the trust and the recipient of your home when the trust ends. The QPRT lets you keep living in your home during this period. Although you still have to pay real-estate taxes and insurance, you get the income-tax benefits of home ownership. After the trust ends, typically you can still live in your home, but you'll have to pay fair-market rent to the beneficiaries at that point moving forward. The QPRT is a highly specialized strategy, but you may want to look into it with the help of an experienced estate planning attorney.

State Estate Taxes. Where you live has a lot to do with the amount of your taxes and how much of your wealth ultimately gets transferred to your beneficiaries. Right now there are 15 states and DC that have an estate tax. Every state can have a different minimum and maximum tax threshold and differing exemptions.

If you live in one of these 15 states with an estate tax, you should talk to your estate planning attorney about the type of tax liability your estate could face in the future.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Find Out The Difference That Experience And Expertise Makes

Get the peace of mind that you deserve. First, attend a seminar. This will entitle you to a free initial consultation and a discounted estate planning fee. To learn more about our services or sign up for a seminar, contact us online or call us at 866-402-1805. We have offices in Torrance, Orange, Newport Beach, Pasadena and Woodland Hills.

Questions? Contact Us.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Call Now For A Free Consultation: 866-402-1805
  • ${site.data.firmName}${SEMFirmNameAlt}
  • Main Office: Torrance

    Torrance Office
    990 West 190th Street
    Suite 500
    Torrance, CA 90502

    Toll Free: 866-402-1805
    Map & Directions

    Orange Office
    333 City Boulevard West
    17th Floor
    Orange, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Newport Beach Office
    5000 Birch Street
    Suite 8000
    Newport Beach, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Pasadena Office
    790 East Colorado Boulevard
    9th Floor
    Pasadena, CA 91101

    Toll Free: 866-402-1805
    Map & Directions

    Woodland Hills Office
    5850 Canoga Avenue
    4th Floor
    Woodland Hills, CA 91367

    Toll Free: 866-402-1805
    Map & Directions

    Office map