If you’re concerned about estate tax, there are several strategies you can use to minimize your tax liability. Here are a few:
You can give up to $15,000 per year to each of your children or grandchildren without triggering any gift tax. By doing so, you reduce the size of your estate, which can lower your estate tax liability.
Placing assets into a trust can help you avoid estate tax by removing them from your taxable estate. There are many different types of trusts to consider, such as revocable trusts, irrevocable trusts, and charitable trusts.
Life insurance proceeds are generally not subject to estate tax, so you can use a life insurance policy to provide for your heirs while reducing the size of your taxable estate.
A family limited partnership allows you to transfer assets to your heirs while retaining control over them. By doing so, you reduce the size of your taxable estate without giving up control of your assets.
If you’re married, you can use the marital deduction to transfer unlimited assets to your spouse tax-free. This can be a powerful way to reduce your estate tax liability.
