Tax Planning
Proper tax planning seeks to reduce unnecessary taxes to the maximum extent possible. To this end, a number of estate planning techniques may be employed.
Tax planning is an integral part of estate planning, since virtually every type of asset is affected by one or more taxes. Take for example, a simple rental property. During each month the property is owned, property taxes must be paid. If the property is sold for more than the purchase price, capital gains taxes must be paid. If the property is passed on at death and the value of the property together with the value of the entire estate is greater than the maximum allowable exclusion amount for estate taxes, then estate taxes must also be paid. If the property is passed onto grandchildren, as opposed to children, there might even be generation skipping taxes that must be paid.
Essentially, then, there are a myriad of different types of federal, state and county taxes that, if unplanned for, can devastate an estate, a business, or an individual's personal tax return. With proper tax planning, however, capital gains taxes can be avoided upon the sale of an appreciated asset, income tax deductions can be maximized, gift and estate taxes can be discounted or altogether avoided, and the reassessment of property taxes upon death or in the event of the gift or transfer of the property can also be avoided.
- Areas of Practice
- Revocable Living Trust
- Living Wills
- Durable Power of Attorney
- Irrevocable Life Insurance
- Charitable Remainder Trust
- Tax Planning
- Estate & Gift Tax
- Advanced Estate Planning
- Private Foundation
- Trust Administration
- Probate & Trust Litigation
- Business Succession Planning
- Asset Protection
- Corporation
- Limited Liability Company