Trusts for Minimizing Estate Taxes
Although Congress recently increased the federal estate tax exemption to its highest level in years, many sizeable estates are still subject to taxation without additional estate planning measures.
The Law Offices of Kennedy & Jackson advises on sophisticated strategies to eliminate or minimize federal estate taxes. Our established and respected law firm advises high net worth couples and individuals in Houston, Sugar Land, Harris County and beyond.
ESTABLISHING TRUSTS FOR MINIMIZING FEDERAL ESTATE TAXES A LAW FIRM IN HARRIS COUNTY WITH BOARD-CERTIFIED ESTATE LAWYERS
Under the current threshold, individuals are able to exempt the first $5.25 million in wealth from federal estate taxes. This is more than adequate for most people, including high earners whose estates would have been taxable just a year or two ago.
A revocable living trust (also known as a marital trust or A-B trust) allows a married couple to double the exemption, protecting up to $10.5 million from federal taxes when the estate passes to the next generation. Without such a trust, only one parent’s exemption passes to the heirs.
For clients whose assets are not covered by the individual or marriage exemptions, any excess is subject to a 40 percent “death tax.” There are options to reduce the taxable estate through gifting, as well as options to reduce or defer estate taxes by placing assets in irrevocable trusts.
Attorneys Thomas Kennedy and David Jackson are certified in estate planning and probate law by the Texas Board of Legal Specialization. Drawing on decades of experience, they can demystify the alphabet soup of various trusts to find the right mix for your estate-related goals, including:
- Qualified personal residence trust (QPRT)
- Qualified terminable interest property trust (QTIP)
- Charitable giving (charitable lead/charitable remainder trusts)
- Generation-skipping trust (dynasty trust)
- Grantor retained annuity trust (GRAT)
- Intentionally defective grantor trust (IDGT)
Reversal Of Estate Tax Planning
Because Congress raised the estate tax exemption, you might wish to regain control of assets that no longer need to be siloed in an irrevocable trust. Our attorneys can help “revoke” a tax minimization trust (with the consent of the beneficiaries) to restructure those assets.
ARE YOU PASSING WEALTH TO YOUR HEIRS … OR THE GOVERNMENT?
Our attorneys have helped many clients with multimillion-dollar estates diminish or eliminate estate tax burdens for their children and grandchildren. We offer a complimentary and confidential consultation to new estate planning clients.
Our law office is located in the Galleria area of Houston, with free on-site parking available next to our office building. To schedule an appointment with one of our board-certified attorneys, call 713-783-7444 or send us an email.