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.