What Is Legacy Wealth Planning? www.wealth-counselors.com
could use your exclusion as well as his or her own. In addition to the estate tax, there is also a gift tax in the United States. You can't just give away assets while you are living in an effort to avoid the federal estate tax. The estate tax and the gift tax are unified. The $5.25 million exclusion extends to taxable gifts, or gifts that exceed the annual exclusion amount. As a result, if you give away $5.25 million while you are living using this exclusion, the remainder of your estate would be subject to federal estate tax. In addition to the unified gift/estate tax exclusion there is an annual per person gift tax exclusion. Under the tax code, you may give gifts totaling as much as $14,000 to any number of individuals in a given year free of the gift tax. To be clear, when you give gifts using this exclusion, they do not reduce the amount of your available unified exclusion.
There are a numberof strategies you can use to mitigate your estate tax exposure. One possible solution would be the creation of a generation-skipping trust. A single imposition of the federal estate tax can have an enormous impact on your financial legacy. However, the estate tax can be imposed over multiple generations, and the same resources could be taxed multiple times. With a generation-skipping trust you name your children as the beneficiaries and trustees for their lives. Your children can receive monetary distributions