Can a Trust Provide Estate Tax Efficiency?

Estate tax efficiency is very important for some people. There is an estate tax on the federal level, and it can have a significant impact on your financial legacy. This tax carries a 40 percent maximum rate, so we are talking about a noticeable bite. At the time of this writing in 2014, the estate tax exclusion is $5.34 million. The first $5.34 million that you transfer to people other than your spouse can be transferred tax-free. There is an unlimited marital estate tax deduction. This allows you to leave any amount of money to your spouse free of the estate tax. You would be using a portion of your $5.34 million exclusion to leave tax-free bequests to people other than your spouse. Trusts and Estate Tax Efficiency There are different types of trusts that are used in the field of estate planning. Some trusts are useful for people who want to gain estate tax efficiency, and some are not. Revocable living trusts are very widely utilized by a wide range people. These trusts facilitate
http://www.preserveyourestate.net/trust-provide-estate-tax-efficiency/

Advertisements