When you work on your Massachusetts estate plan, you may do so with the intention of leaving as much of what you have behind for your family or loved ones as possible, but estate taxes can throw a wrench in the works. Depending on where, exactly, you live, estate taxes can take up a substantial portion of your legacy, which can significantly reduce the amount you have to leave behind for your loved ones. At Curley Law Firm LLP, we recognize that lowering your estate tax burden is an effective method of maximizing your wealth, and we have helped many people accomplish this and similar estate planning objectives.
According to U.S. News & World Report, there are several key steps you can take that can effectively reduce the amount the government will take from your estate. Arguably one of the easiest methods of reducing estate tax simply involves starting to make distributions to heirs now, before you pass away. By doing so, you are reducing the overall value of your estate and in doing so, lowering the amount of tax assessed against it.
Another highly effective method of lowering your estate tax burden involves leaving your asses behind to your loved ones in trusts. Trusts, which are fiduciary arrangements that allow you to hold and protect assets, involve giving someone else control over them, but in doing so, you can safely shield the assets you place inside the trust from estate taxes. In other words, any assets you enter into a trust do not ultimately factor into the value of your estate, thereby lowering your estate tax burden.
Chances are, you worked hard all your life so that you could leave something behind for those you hold dear. By lowering your estate tax obligations, you can, in turn, maximize how much of your legacy will go directly to your beneficiaries. You can learn more about estate planning on our webpage.