Limiting Estate Taxes, Preserving Wealth
At the St. Paul office of Scott + Hespen Law, PLLC, we believe our clients should transfer their property and wealth to the next generation in the most tax-efficient manner possible. For almost 25 years, our attorneys have been helping individuals throughout the Twin Cities take advantage of estate planning tools that reduce their overall tax liabilities and preserve family wealth across generations.
Our attorneys believe family wealth should stay in the family. With the help of certified public accountants and financial advisors, we develop sophisticated estate plans that take advantage of a wide variety of estate planning tools, such as tax-savings trusts, family foundations and gifts, to reduce our clients’ overall federal and state gift and estate tax liabilities. Giving to charity is another way to increase deductions and reduce overall taxes.
When Are Estates Taxed?
Both the federal government and the state of Minnesota impose an estate tax on the value of the decedent’s estate upon his or her death.
Under federal law, gift and estate tax is only imposed on estates valued at more than $5 million for individuals and $10 million for married couples. There is also an annual gift tax exclusion. Gifts in excess of that exclusion may be subtracted from the lifetime $5 million exemption.
However, Minnesota estate tax laws differ from federal laws. A new gift tax will be implemented in Minnesota this year and the state imposes estate tax on estates valued at more than $1 million for individuals and $2 million for married couples.
Because the Minnesota estate tax deduction is limited, it is important to create an estate plan that takes advantage of tax planning tools to move wealth out of your estate and into the hands of your heirs in a tax-free manner. Unless sophisticated tax planning devices are used, large estates will be subject to both federal and state estate taxes and possibly gift taxes as well.
Speak To An Attorney About Protecting Your Assets
Our attorneys are constantly looking at the bigger picture to ensure each tax-saving tool we use works seamlessly within the greater estate plan. Because each document is part of a greater whole, we are often able to eliminate clients’ estate tax liabilities altogether.