The Wall Street Journal
The New York Times
Better Homes and Gardens
Working Mother
Boulder Daily Camera

How to Avoid Estate Tax

The Colorado estate tax is also referred to as the death tax. Some people think that the decedent's heirs have to pay taxes on the estate. However, this is not the case. The taxes are actually paid out of the estate before any proceeds go to the heirs. The person designated as executor of the estate will oversee the details and the distribution of assets. Additionally, your spouse does not have to pay estate taxes as long as he or she is a United States citizen. By law the estate transfers to the spouse upon death.

For advice on your specific situation, contact the experienced attorneys at Braverman Law Group, LLC. They help clients create customized estate plans. Call us at (303) 800-1588 to arrange your free consultation.

Strategies for Avoiding the Death Tax

Fortunately, there are ways around paying estate taxes in Colorado.

  • Give it away — You are allowed to gift up to $14,000 a year to individuals. This money will not be taxed. This amount becomes unlimited if the gifted money is used for someone's education or medical bills.
  • Relocate for a tax break — Some states either do not have an estate tax or have a lower estate tax than Colorado. You could establish residency in one of those places in order for your estate to be considered in that state regarding taxes rather than in Colorado.
  • Reduce your assets — This may seem obvious, but you can reduce your assets or downsize in order to lessen the taxes due at the time your estate is settled. Reducing assets has the advantage that you will have control over selling or donating them. You will be certain that your intentions are carried out by doing some of this up front work.

By employing strategies now, you can ensure that your children and other heirs will receive the maximum amount from your estate, rather than handing over more money to the government.

Get a Free Consultation Today

Contact our Boulder Valley attorneys for your estate planning needs. We offer a free consultation and our estate planning lawyers each have more than 15 years of experience assisting people with their future plans. Call us today at (303) 800-1588 or email our firm to make your appointment. The best plans are made before you need them.

Client Reviews
When my husband died, I felt I needed to honor him for his children and friends. Working through the plans was healthy because I've been a planner professionally. My daughter is not a planner and I know she would not find those endless tasks therapeutic like I did. So I've created a very specific estate plan with Diedre Braverman's counsel, detailed guidance, and support. Now I feel relief knowing that my death will not derail my daughter's life. Barbara Joan Martin
I really appreciate your calming nature. You are incredibly helpful and kind. After speaking with me it was the first time in a long while where I was able to sleep through the night because of your reassurance. Trudy Moore
I trust Bennett and feel his depth of knowledge. The time and energy Bennett spent briefing the beneficiaries of our plan – helping them to know what to expect and what their duties and responsibilities would be – was invaluable. I trust Bennett and feel his depth of knowledge will allow him to serve a wide range of client needs. The ramifications of each decision were fully explained and his adaptation to our family’s needs was exceptional. Anonymous
Diedre took the time to go beyond our initial assumptions and explained how we can benefit from strategies no one had explained to us before. Kathy
Bennett Braverman is a thorough, knowledgeable expert in his field. He did an excellent job in walking us through the Living Trust process, coaching us through decisions, and making sure we completely understood the what we had to do and the associated benefits and risks. We will continue to recommend him to our friends and look forward to partnering with Bennett in the future. Lisa
Justia Lawyer Rating
Super Lawyers
Colorado Bar Association
Wealth Counsel
Boulder County Bar Association