Taxes Attorney in Henderson, Nevada
What are some of the ways taxes be reduced through estate planning?
What are some of the ways taxes be reduced through estate planning?
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00:04
there are some very important steps that
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everyone needs to understand about the
00:08
taxation of assets
00:10
and one of the the challenges of of good
00:13
estate planning is these laws are
00:14
constantly in flux right now congress is
00:17
considering laws to change
00:19
uh the way that we gift assets but as
00:22
the laws currently exist each person has
00:25
an exemption from a state tax or
00:28
inheritance tax of eleven million seven
00:30
hundred thousand dollars so for most
00:32
people everything they own
00:34
will pass tax-free to their heirs when
00:36
they die
00:38
now those laws can change there there
00:40
was a time when the amount that was
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exempt from estate tax was six hundred
00:44
thousand dollars and so these amounts
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that you can gift free of tax are
00:49
subject to the laws that congress passes
00:52
and currently those laws are very
00:53
generous
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and so one of the things that we try to
00:56
encourage our clients to do
00:59
is to
01:00
focus on how what is the most effective
01:02
way to use that exemption whether it be
01:05
six hundred thousand or eleven million
01:07
seven hundred thousand
01:09
and what i mean by that if we wait until
01:11
they die
01:12
to use their exemption then the most
01:15
that we will ever move from their estate
01:17
is the amount of the exemption
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but
01:20
if mom and dad are in a position to make
01:22
lifetime gifts
01:24
they can allocate part of that exemption
01:26
to that gift and let me give an example
01:29
of that if mom and dad have a business
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and it’s worth a million dollars but we
01:34
think that it’s going to go up in value
01:36
let’s say in 10 years it’s going to be
01:37
worth 5 million dollars if mom and dad
01:40
make a gift today of a million dollars
01:43
and we allocate part of their exemption
01:45
to cover that gift
01:47
then all of that appreciation takes
01:50
place out of their estate and it’s not
01:52
subject to estate tax so by correctly
01:55
using
01:56
this estate tax exemption for lifetime
01:58
gifts you can sometimes give away much
02:01
more than just the exemption itself
Las Vegas, NV estate planning attorney Gregory J. Morris discusses some of the ways taxes be reduced through estate planning.
