Probate in California - Fontana Probate Lawyer
They say that nothing is inevitable but death and taxes - and estate taxes follow you even after death. A Fontana probate lawyer can help you reduce the tax liability on your estate so that your family will inherit more of what you leave behind. With the help and guidance of a probate lawyer, you can use various legitimate and fully legal tactics to reduce estate taxes. Here are just a few of the techniques that may be useful to you. The specific strategies and plans that suit you will vary with your circumstances. An experienced Fontana probate lawyer can help you sort out the best strategies for your estate planning purposes.
1. Annual Gifts
Marital transfers and lifetime gifts to children and grandchildren are one way to transfer assets to intended beneficiaries and reduce the size of your taxable estate. The IRS allows you to transfer up to $12,000 a year to children and grandchildren without incurring a gift tax. Over the years, that can add up to a sizable amount.
2. AB and QTIP Trusts
Both AB and QTIP trusts maximize the amount of your estate that will be passed on eventually to your children by reducing or deferring the estate taxes due on your estate. A probate lawyer can explain the details and tell you whether you qualify.
3. Irrevocable life insurance trusts
Life insurance proceeds are generally not taxable. By setting up a life insurance trust that transfers a relatively small amount of the estate (the price of life insurance premiums), you create a much larger asset outside the estate (the life insurance proceeds).
4. Charitable Trusts
For those who wish to donate part of their estates to charity but retain the use of a portion or all of the assets during their lives, there are types of charitable trusts that allow you to do just that while receiving an immediate tax deduction for their contribution. If you think you may be able to take advantage of a charitable trust deduction, consult a Fontana probate attorney to discuss details.
5. Family Limited Partnership
If you have a family business, you may be able to set up a family limited partnership that will allow you to maintain control of your business while making transfers of property to your children, and significantly reducing the tax burden that they'll inherit along with your property.
A Fontana Probate Attorney can tell you more about these and other ways to reduce the burden of inheritance and estate taxes on your heirs. Take the time to talk over your options with a skilled probate attorney or professional so that your children and beneficiaries get the full benefit of your assets after your death.
