Estate Taxation Attorneys in Colorado Springs
You Can Limit the Impact of Taxes on Your Estate
An estate planning attorney can help you reduce your estate’s exposure to taxation. Strategies such as making lifetime gifts and utilizing trusts can help to reduce the amount of taxes due upon your death—or even eliminate them altogether. Devising a strategy that meets your unique needs and goals is possible, but only with an experienced estate planning lawyer.
If minimizing your estate’s exposure to taxes is one of your estate planning goals, we at Drexler Law can offer the guidance and services you require. We take the time to get to know our clients and their unique needs so that we can provide personalized advice tailored specifically to them. Our team of experienced estate taxation attorneys in Colorado Springs can work with you to develop a strategy that puts your mind at ease when it comes to taxes and your estate.
Let us do the hard work for you. Call (719) 259-0050 now to learn more about how Drexler Law can help.
We Can Help You Minimize Your Taxable Estate
Although Colorado doesn’t have an estate tax, the federal government does. If you are single and your estate exceeds the $12.92 million federal exemption ($25.84 million if you’re married), careful planning can help you reduce the size of your estate and its exposure to federal taxation.
A few strategies that can help you minimize your estate’s tax exposure include the following:
- Making gifts to your family members
- Establishing an irrevocable trust
- Making charitable donations
- Utilizing tax-advantaged accounts
- Developing asset protection strategies that incorporate IRAs, 401(k)s, 529 plans, and Health Savings Accounts (HSAs)
- Place assets in jointly held accounts
Some of these strategies may help you accomplish your estate planning goals, but there are many others that our experienced estate taxation lawyers in Colorado Springs can help you explore. Reach out to us today and request a consultation to learn more about how we can provide the legal support you need.
When Does Giving Money Trigger the Gift Tax?
You can gift up to defined amounts as established under the Internal Revenue Code (e.g., $16,000), adjusted for inflation, to any number of individuals without your gift counting toward your lifetime federal estate tax exemption or triggering gift tax consequences.
Giving an annual gift is one way those with sizeable estates can slowly transfer wealth to their children and other relatives. Mapping out gifts in this manner can help you avoid unintended consequences for your estate, such as reducing your lifetime exemption that may expose it to federal estate taxes.
How Does a Trust Reduce Estate Taxes?
Not every trust can reduce estate taxes, but irrevocable trusts take advantage of provisions of the Internal Revenue Code. Often seen as effective tools for preserving a family’s wealth, these trusts can reduce estate taxes because the tax a grantor pays on the trust’s income reduces the value of the grantor’s estate.
Structuring a trust to account for and avoid the myriad or traps and tax consequences is an exacting endeavor and involves careful coordination between attorneys and other tax professionals. Drexler Law maintains an in-house associated Certified Public Accountant (CPA) to assist and advise our clients on the important tax provisions affecting the client’s estate plan. We take this seriously so you can sleep at night knowing your wealth will be transferred to your heirs without leaving daunting tax liability after you pass away. Your legacy should be about you, not about the tax liability left behind.
Overall, when used in conjunction with other tax-planning strategies, an irrevocable trust can support your estate planning goals. Our estate taxation attorneys at Drexler Law can guide you through options that may be suitable to your objectives.
Contact Us Today to Learn More
There’s no better time to think about tax planning than right now. If you’d like to learn more about how Drexler Law can provide the legal support and services you need, reach out to us and request a consultation. During this meeting, you can learn more about us as a law firm and how we help people like you achieve their estate planning goals.
Get in touch with us today by contacting us online.