Tampa Estate & Gift Tax Attorney
Confused about what estate or gift taxes you might have to pay? You are not alone. There is a lot of confusion surrounding estate taxes because the tax code is in constant flux. Your estate may, in fact, be too small for the IRS to tax it as it currently stands. Or, you may end up paying hundreds of thousands of dollars more than you need to if your estate is not exempt and you do not plan accordingly. With proper planning, we can help you minimize your completely eliminate estate and gift taxation. Here at Strategic Counsel Law Group, L.C., our attorneys are always up to date on the ever-changing estate and gift tax codes, and will work to find a solution for your individual case. A Tampa estate & gift tax attorney can help.
How Large Does an Estate Need to be to be Taxed?
Like most states, North Carolina does not impose any estate tax whatsoever. However, the federal estate tax exemption does apply to North Carolina residents. For individuals, that federal estate tax threshold is $12.06 million. Anything under this does not get taxed. For married couples, the limit is double: $24.12 million. And, only funds over the taxable limit are taxed. For example, if a couple’s assets are valued at $30 million, only $5.88 million is taxed (not the entire $30 million). The lowest estate tax rate is 18 percent, while the highest is 40 percent.
Gifting is a popular method for reducing the size of one’s estate, while also providing assets for your loved ones to use now, when they need those assets the most. You can gift up to $16,000 per year, tax free. Married couples can gift up to $32,000 tax free each year to a single person. And, if you are married and the party you are gifting to is also married, the tax-free gifting limit is doubled to $64,000 per year.
Methods for Spending Down Your Estate
If your estate is larger than $12.06 as an individual or larger than $24.12 million as are married couple, there are a number of methods you can employ to reduce the size of your estate in order to avoid taxation, or significantly reduce the value of assets that end up being taxed. These methods include:
- Creating an irrevocable trust
- Setting up charitable trusts
- Planned tax-exempt gifting
- Create a family limited partnership
- Create a qualified personal residence trust (QPRT)
- Create a generation skipping trust
Reach Out to a Tampa Estate and Gift Taxation Attorney Today for Assistance
Minimizing taxes is an important aspect of estate planning, and here at Strategic Counsel Law Group, L.C., we understand your goal of avoiding unnecessary taxation. Our Tampa estate and gift taxation attorneys employ strategic estate-reducing tactics to help limit the tax burden that will be imposed on your loved ones when you pass away. Call us today at 813-286-1700 to schedule a free consultation.