Estate and gift taxes can significantly affect how much wealth gets passed on to the next generation. While many families won’t face federal estate tax because of current exemption levels, others may still need to plan carefully to reduce the impact of both estate and gift taxes. Our Jacksonville, FL tax lawyer can provide valuable support by helping us take advantage of the law in a way that fits our goals. We offer 24/7 live call answering, so don’t hesitate to reach out to us today.
Keeping Up With Tax Law Changes
One of the most important reasons to work with a lawyer in estate and gift tax matters is that tax laws change frequently. What worked a few years ago might no longer apply, and thresholds can shift depending on current legislation. For families with significant assets, it’s important to stay ahead of those changes and act when the law allows for planning opportunities. For example, lifetime gift exclusions or annual exclusion amounts might be used strategically to transfer assets over time.
Using Annual And Lifetime Exclusions Wisely
A lawyer can help us use the gift tax rules to our advantage. The law allows individuals to give a certain amount of money or assets each year to another person without triggering gift tax. While that seems simple, it’s more effective when it’s part of a long-term strategy. Gifts can be structured over time or spread among family members. A lawyer can also help us document those transfers correctly, which matters if questions come up later with the IRS.
Structuring Trusts And Asset Transfers
For high-net-worth families, a lawyer can assist in setting up trusts or other tools to reduce the value of the taxable estate. That might include irrevocable trusts, grantor retained annuity trusts (GRATs), or charitable giving plans. These strategies require careful drafting to comply with tax laws while still meeting our personal and financial goals. Without the right legal guidance, we could end up creating problems rather than solving them.
Planning For Business Or Property Transfers
It’s also common for families to want to pass down a business, real estate, or other large assets that aren’t easily divided. In those cases, a lawyer can help us look at the best way to structure the transfer, avoid unnecessary taxes, and reduce potential disputes among heirs. This kind of planning often involves both estate and gift tax considerations. It may also involve reviewing state tax laws, which can vary and apply in addition to federal rules.
Filing Accurate And Timely Tax Documents
Gift and estate tax returns may also be required. A lawyer can help us prepare and file those documents, keeping things accurate and timely. That’s especially important when we’re making larger gifts or using a portion of the lifetime exclusion. Mistakes on these filings can lead to audits or penalties.
At Crepeau Mourges, we work with individuals and families to develop estate and gift tax plans that are both practical and effective. If you’re looking to reduce your estate’s tax burden or want to pass wealth to future generations without surprises, contact us to schedule a consultation; we have over 40 years of experience. Let’s talk through your options and build a strategy that makes sense for your situation.
