Estate planning is more than simply allocating who will inherit your possessions after you pass away. There must be attention given to the taxation ramifications for your beneficiaries. If set up incorrectly, your beneficiaries may be burdened with extensive taxes on their inheritance which could ultimately reduce the amount they receive from your estate.
The Denver estate tax lawyers at Brown & Crona, LLC, have extensive experience in helping clients create and/or modify the right documents to protect their estate, avoid or minimize state and federal taxes and reduce lengthy probate court costs. Upon review of your unique situation, we may recommend you:
- Set up a will or trust
- Make sure you have beneficiaries listed on insurance policies, retirement funds, etc.
- Allocate monetary gifts to other people while you are still alive (the current maximum is $14,000 per person, per year)
- Convert traditional retirement accounts to Roth accounts to avoid income tax
- Set up the right type of business (if you own a business) to pass this onto beneficiaries with minimal taxation
- Purchase life insurance through an irrevocable life insurance trust
There are many other steps that can be taken to avoid or minimize Colorado estate taxes as well as federal estate taxes. The very best way to ensure that you have done everything in your power to protect your estate is by meeting with an experienced attorney. Contact our team today to start that discussion.