4: Minimizing Your Tax Liabilities
Virtually everything you own or control may be subject to estate, inheritance, gift, and generation-skipping taxes, which can substantially reduce what you pass on to your heirs.
Federal estate tax law has shifted repeatedly over the past two decades, and it will shift again. What remains constant is this: the larger and more complex your estate, the more important thoughtful planning becomes. Even when the federal exemption is historically high, many states impose their own estate or inheritance taxes — often with far lower thresholds — on distributions to non-charitable heirs.
Thoughtful estate planning may help reduce or eliminate certain tax liabilities while preserving more for the people and causes you care about.
Things You May Want to Consider
- Some planning strategies may involve transferring ownership or control of assets during your lifetime.
- Tax laws change. It's wise to review your estate plan every few years with a qualified advisor — especially after major legislation or a significant life event.
- Well-structured planned gifts can provide tax advantages while helping support a meaningful legacy.
- Charitable gifts — through your will, a trust, retirement assets, or a donor-advised fund — may reduce the taxable value of your estate.
Consider making a gift through your will or trust.
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