Depending on the nature of your financial situation, a trust may not be the most effective means for avoiding certain kinds of property and inheritance taxes. Individuals with multi-million dollar estates can exempt up to a million dollars of their estate through a gift tax plan. Currently, there is a $1 million limit at the Massachusetts state level. The Federal Estate Tax is currently in a state of change of dramatic change and could be eliminated or raised, depending on what legislators decide within the upcoming months and years. If Congress does not renew the current taxable rate, the estate tax would return to 55 percent and allow only a $1 million exemption.
The Boston law office of Blake Law works closely with clients interested in establishing an estate gift plan, structuring your will or trust to take full advantage of the unified credit exemption.
To learn more about gift tax plans and how we can enhance your current estate plan, contact the estate and gift tax planning lawyers at Blake Law today.
What is the Gift Tax?
When you give property to another person without expecting anything in return, under federal law you may be subject to a tax on the value of the gift provided. In this sense, gifting can be an essential component in asset protection. While most people think of gifts primarily in the form of homes or real property items like cars, even money you lend to a friend in the form of an interest free loan may be considered as a gift by the federal government.
Gifts and Estate Planning
Our attorneys can evaluate your current financial situation and estate plan and advise you in regard to the following:
- Charitable remainders
- Family limited partnerships
- University gifts
- Transferring a home title or deed
- Transferring cars, antiques and other kinds of property
How Can a Gift Help My Estate Plan
Certain gifts are exempt from taxation and allow the donor to claim a tax deduction on their estate tax. Charitable donations to various organizations allow you to avoid paying certain kinds of taxes on your estate. As your estate planning attorneys, Blake Law explains how you can protect more of your estate through effective gift-giving and investment strategies.
Discuss Your Options - Avoid Spending Down Your Assets
Even if you currently have an estate plan in place, our office can help you identify means for protecting more of your assets for your family's future. Our attorneys can audit what you currently have in place in order to identify additional estate planning options that can help you protect more of your assets while supporting a cherished cause. Additionally, changes in Massachusetts' guardianship laws affect gifting and the amount a person can give without court approval.
To discuss how we can help you, contact the estate and gift tax planning lawyers at Blake Law today. Understanding the gift tax exemption and estate inheritance planning can help you save more of what you've worked hard to earn.