Yakima Estate Tax Lawyers
You are certainly familiar with taxes on income, property, business dealings, and many other areas of your life, and there may even be tax liability upon your passing. Under federal tax regulations established by the IRS and tax laws in Washington, individuals with higher net worth might incur estate tax on the assets they own at death. The good news is that you do have options to reduce or eliminate the amount your estate owes, and you will need to engage in some advance planning to achieve your goals.
At Moulton Law Offices, our team has in-depth knowledge of estate planning laws, so we can advise you on strategies for minimizing estate taxes. Your options offer significant benefits, but they are also extremely complicated. Errors can lead to costly results when your estate tax liability takes a chunk of the legacy you left for loved ones. Please contact our firm to schedule a consultation with a Yakima estate tax lawyer today. You may also benefit from reviewing some background about the relevant concepts.
Estate Tax Basics
IRS rules are always complicated, and the same is true for estates. Plus, with Washington’s estate tax, there are multiple levels of taxation to consider. A few important points should help convince you to explore options for estate tax planning:
- Federal estate tax is triggered when an estate is valued at $12.92 million at death. The amount is doubled for married couples. The tax rate on the amount above these thresholds ranges from 18 to 40 percent.
- In Washington, you will have estate tax liability if your estate’s net worth is $2.193 or more at your death. The rate applied to the excess amount is 10 to 20 percent. You can obtain a deduction under federal estate tax laws when paying the Washington estate tax.
- If you own assets that are situated in another state, you could owe estate taxes depending on the home jurisdiction’s laws.
Strategies for Estate Tax Planning
There are ways to minimize or avoid estate taxes, and time of the essence to get started with planning. One option is lifetime gifting, where you reduce your estate by giving gifts according to structured distributions. Moulton Law Offices can counsel you on strategy, since you are limited on the amounts you can give by IRS rule. In 2023, you can gift up to $17,000 and married couples can give a maximum of $34,000.
A Washington estate tax lawyer can also evaluate opportunities for married couples to protect their double exemption amount. You may benefit from incorporating charitable trusts, irrevocable trusts, limited liability companies, and family limited partnerships into your estate plan. Keep in mind that it is always wise to review your estate tax planning, since the laws change frequently.
Get Legal Help from a Yakima Estate Tax Attorney
If you have concerns about incurring estate tax liability, please contact Moulton Law Offices to learn more about ways to avoid or minimize the costs. We can set up a consultation with a Yakima estate planning lawyer who will analyze your situation and determine how the laws apply.
