Death and taxes.  The statement is still true – you can not escape either of them. The main change in this statement is that in the last few years estate taxes have gone through numerous changes based on a number of factors. One of these factors is the current administration.  This allows for numerous estate tax planning opportunities that should be considered.

Estate taxes, sometimes referred to as inheritance taxes, are taxes paid on the transfer of wealth from one generation to another. There are several types of returns that are brought about by the death of a member of your family, and transfers in anticipation of this passing. Depending on the relationship there may or may not be taxes due at this time. (SUCH AS SPOUSE TO SPOUSE TRANSFERS)

There are three main tax returns that are related to estate and gift taxes;

• FORM 1041, UNITED STATES RETURN FOR ESTATES AND TRUSTS
• FORM 706, UNITED STATES ESTATE (AND GENERATION SKIPPING TRANSFER) TAX
• FORM 709, UNITED STATES GIFT (AND GENERATION SKIPPING TRANSFER) TAX

With proper planning, using an attorney, financial planner, and an acountant, estate taxes can be minimized. Our firm works with legal firms that create revocable living trusts that not only avoid probate, thus saving future legal fees, but also have an impact on the final estate tax.  We are available for consultation with these other professionals.