As a Florida resident who worked hard to create a lasting legacy, chances are, you drafted an estate plan with the hope that doing so would allow you to maximize the amount you were able to leave behind for your loved ones. At the Law Offices of Frye & Vasquez, P.L., we understand that reducing the amount of tax assessed against your estate is an effective method of maximizing what you can leave behind. We also have considerable experience in helping clients accomplish this and many related estate planning endeavors.
According to U.S. News & World Report, one of the easiest ways you can reduce the amount of estate taxes your loved ones must pay after your passing is by giving away your wealth now. Maybe you want to use your assets to help fund charitable causes of interest to you, or maybe you wish to give them to your children or loved ones in, say, annual installments. Regardless of the method you use to do so, giving away wealth now will reduce the overall amount of estate taxes your loved ones must one day pay.
Another popular and effective method of reducing estate tax involves placing your assets into a trust. A trust is a type of fiduciary arrangement in which you give someone else the power over assets intended for a beneficiary. Trusts come in an array of different forms, but a special needs trust, for example, can help you provide for a special needs child after your passing without impacting the child's ability to maintain access to government benefits. The assets you enter into a trust do not factor in when determining estate tax, so this is an effective method of reducing estate tax.
A third way you can work to reduce estate tax is by using your lifetime exemption from estate taxes. In most cases, the exemption does not come into play until a person dies, but in some situations, taking advantage of it sooner can reduce the amount of estate taxes assessed after your passing. Find more about estate planning on our webpage.