Many people in Louisiana don’t realize that their loved ones might have to pay estate taxes after their death. You might not be able to eliminate estate taxes entirely, but you can take steps to reduce the amount of taxes that your loved ones have to pay on their inheritance. Here’s a few ways you can reduce the taxes on your estate.
How can you reduce your family’s estate taxes?
One technique to reduce estate taxes involves giving away as much of your estate as possible while you’re still alive. Since it’s not considered an inheritance until you pass away, these gifts won’t be taxed. However, you’ll want to be careful not to give away too much as you don’t want to run out of money before you die.
Some people use certain estate planning techniques to reduce the amount of estate taxes. An estate planning attorney might help you create trusts, LLCs and other financial products that help your family members reduce the inheritance tax. If you form a charitable trust, you and your loved ones will even get a tax deduction.
You can also take advantage of the marriage exemption. When two people get married, they get to combine their estate tax exemption. As a result, you could potentially leave up to $23 million in assets to your loved ones without any estate taxes.
Should you hire an attorney to help you plan your estate?
Planning your estate isn’t just about dividing up your assets. You’ll want to talk to an attorney to figure out how to leave behind an airtight will that doesn’t force your loved ones to pay a hefty inheritance tax. An attorney may help you write an in-depth estate plan that frees your beneficiaries from taxes as much as possible.