If you are among the many Florida residents working on your estate plan, you would be wise to consider whether you will have to pay estate tax. If so, it may prove beneficial for you to think about how you might be able to minimize the amount owed. At the Law Offices of Frye & Vazquez, P.L., we have helped many residents work through these and other estate-planning issues, aiding Floridians as they plan for the future while helping them retain more of their own wealth.
Per U.S. News & World Report, just how much you may ultimately owe in estate taxes will depend on several factors, among them how much you have in assets. Odds are, you want to minimize your estate tax burden as much as possible so that more of the assets you worked so hard to generate make their way to your beneficiaries, and there are several techniques you can employ in doing so.
A popular option many people choose when trying to minimize estate taxes involves placing assets in a trust. Placing your assets in a trust is one method of shielding them from estate taxes, and there are several different types of trusts you may consider. While your trust will require a trustee, this person can, if you wish, be a spouse or other trusted family member.
Depending on your level of wealth, you may also want to consider purchasing extra life insurance you can utilize to cover the cost of estate taxes. The value of such a policy goes straight to your beneficiaries, bypassing probate. However, you must also establish an irrevocable life insurance trust to ensure that the value of the insurance policy does not factor in to the value of your entire estate. More about estate planning is available on our web page.