Three Trusts That Can Reduce Your Estate Tax Burden


People who have been able to accumulate significant wealth are undoubtedly aware of the potential imposition of estate taxes. On the federal level, the estate tax carries a 40 percent top rate, and this is a very big slice. The existence of this tax is especially disturbing to many people, because they see it as an instance of double taxation. After all, your estate is comprised of assets that you have left after you paid taxes all of your life. Why should a legacy that you are leaving to your loved ones be hammered down by 40 percent after you already paid so many taxes? This question is a good one, and there have been legislative efforts to eliminate the estate tax. However, it is a fact of life at the present time. On the federal level, the exclusion is $5.45 million. The portion of your estate that exceeds this amount is subject to the estate tax. The gift tax prevents you from giving gifts while you are living to avoid the death tax. The $5.45 million exclusion encompasses gifts
http://preserveyourestate.net/blog/estate-planning/trusts-reduce-estate-tax-burden/

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