Although you might be one of many Americans who will not owe any estate tax, you might still have to pay an inheritance tax. To understand the difference, it is a good idea to get advice about estate tax planning Beaver Dam, WI residents need.
As the beneficiary of an estate, you are responsible for paying the tax. However, the right provisions in a will might relieve you of this burden. Here are a few things for you and your loved one to consider about handing this liability.
Reduce Estate Value by Spending Assets
One action that guarantees a reduced tax liability is to spend assets. By doing this, you reduce the value of the estate. Keep in mind that this tactic works best when you have enough money to sustain your lifestyle for the remainder of your life.
Creating a Foundational Estate Plan
Another consideration for estate tax planning in Beaver Dam, WI is to create a foundational estate plan. What this does for married couples with a basic AB Trust is reduce, or in some cases eliminate, estate taxes on the state and federal level.
Taking Advantage of Estate Planning Techniques
There are many advanced methods that can help you reduce taxes. For example, you can create a charitable trust to receive a charitable income tax deduction upon funding the trust. This also ensures that after you die, your estate receives a charitable estate tax deduction.
Come to Quincey Becker Schuessler Chase & Devitt SC for Sound Advice
Confer with QBS Law S.C. for peace of mind and legal ways to reduce your tax bill. For more information on how we help you navigate the estate tax landscape.
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