You work hard for your money and you are taxed on that money as you earn it. Unfortunately, if you want to pass on your wealth to your loved ones, you could face additional taxes. Depending upon the value of the assets that you want to give to others, you could be taxed both on gifts you make during your lifetime and on the transfer of wealth after your death.
Paying taxes on gifts and on assets after your death can significantly reduce the wealth that you want to provide to the people you love. You do not have to lose this money to the government. Let Anderson, Dorn & Rader, Ltd. help you to develop a strategic plan for avoiding gift taxes and estate taxes so you can use your money to support loved ones. Give us a call at 775-823-9455 to get personalized tax planning advice and answers to questions you have about gift tax and estate planning including:
What are the rules for gift tax and estate tax?
How can I avoid gift tax and estate tax?
How can a Reno estate tax planning lawyer help me?
Anderson, Dorn & Rader, Ltd
What are the Rules for Gift Tax and Estate Tax?
The state of Nevada does not impose an estate tax on anyone who has passed away after January 1, 2005. Nevada also does not impose a gift tax. This does not mean you don’t have to worry about these taxes if you live in Nevada.
The federal government will try to tax both gifts you give and estate assets that you pass on, if the gifts or estate assets are valued highly enough. The federal government imposes an estate tax on any estate that exceeds $11.58 million as of 2019. Gift taxes are also imposed upon gifts that are valued at more than $15,000.
How can I Avoid Gift Tax and Estate Tax?
Although both gift and estate taxes can be burdensome, they are also both avoidable in many circumstances… if you get legal help form an experienced gift and estate tax lawyer. Anderson, Dorn & Rader, Ltd. can provide you with advice on how to avoid these taxes through strategic tax planning.
One of the most important things to realize about gift tax is that each gift giver can give $15,000 to each gift recipient annually without the tax being assessed. This means if you have two children, you could give $15,000 to each child for a total of $30,000 given. Your spouse could also give $15,000 to each child. This means that your son could get $30,000 total from you and your spouse combined, and so could your daughter.
Gift taxes are also not assessed on gifts given between spouses, and you do not pay gift taxes if you use the money to directly pay things like tuition or medical bills. Because you can end up giving a lot of money away each year, giving inter vivos gifts (gifts during your lifetime) is one way you can reduce your taxable estate and avoid estate tax.
There are also ways to reduce or avoid estate tax as well. First and foremost, there is no tax assessed on assets transferred to a spouse after death. If you do not use your $11.58 million exemption because you leave all of your wealth to your spouse, you can also pass your exemption on. Your spouse could now transfer $22.8 million upon death to your children or other chosen heirs. This means simply leaving your wealth to your spouse can help many people avoid estate taxes entirely.
If you do not want to leave wealth to your spouse or if doing so won’t allow you to avoid estate tax entirely, you can also explore other tools that can allow you to reduce or avoid estate tax. These tools could include the creation of a family limited partnership and the use of trusts. Anderson, Dorn & Rader, Ltd. can assist you with the creation of a personalized plan so you can find ways to keep your wealth safe from the government.
How Can a Reno Gift Tax Lawyer or Estate Tax Lawyer Help Me?
Don’t lose your hard earned assets due to large tax bills assessed when you give a gift or when you pass away. Talk with a Reno gift tax lawyer or estate tax planning attorney to find out what options you have for passing your money on without giving the IRS a big piece of it. You can contact Anderson, Dorn & Rader, Ltd. today to get personalized tax-planning assistance to help you reduce taxes or avoid taxes altogether. Call now to get started.