Estate Tax Planning in Frankfort

For those who have acquired significant assets, a lifetime of hard work could be jeopardized by estate taxes. You can protect your legacy by planning ahead. Because estate tax laws are always changing, it is essential to engage the services of an experienced trusts and estates attorney. A Massari Law, LLC we work with clients in Cook, Dupage, Lake and Will Counties to develop a variety of estate tax planning strategies.

Currently, the exemption from federal estate taxes is $5.45 million which means that each individual can transfer up to $5.45 million in assets without owing federal estate taxes. The tax rate for estates over the exemption amount is 40 percent. In addition, Illinois has an estate tax of 16 percent that applies to estates with a value greater than $4 million.

Currently, federal estate tax law allows for portability of individual exemptions between spouses. Put simply, this means that a surviving spouse has the option of utilizing the deceased spouses unused exemption amount.

In so doing, the amount of wealth that a married couple passes to heirs can potentially be doubled. In order to elect portability, a surviving spouse must file an estate tax return with the IRS within 9 months of the death of the first spouse. Unlike the federal government, however, Illinois does not permit portability.  Another option for couples to maximize their tax exemptions is to take advantage of trusts such as an A-B Trust, Bypass Trust or Credit Shelter Trust. By engaging the services of Massari Law, you can learn more about which option is best for you.

There are a number of other ways to minimize or avoid estate taxes. One common approach is to take advantage of year end gift giving. Currently, individuals can give up to $14,000 each year to as many recipients they wish without paying a gift tax. In addition, charitable gifts, tuition and medical payments can be made without paying a gift tax. This allows you to reduce the size of your estate and minimize the tax consequences. 

In addition, there are a number of trusts that can be established that can protect your estate from taxes. For example, an irrevocable life insurance can be used to transfer an individual's life insurance proceeds outside of his or her estate. Charitable trusts can also be put in place to reduce income and estate taxes by combining gifting with charitable donations. In a charitable remainder trust, for example, an individual receives incomes from the trust for a certain period of time, and the remainder is transferred to a charity as the final beneficiary. An experienced trusts and estates attorney can help you take advantage of these and other options

Located in Frankfort, Massari Law designs estate tax planning strategies to clients in the Chicago Metro Area. You've spent your life working hard to provide for your family, don't let estate taxes put your wealth at risk. Call our office today for a free consultation.