Estate Tax Planning Putting Your Legacy on Cruise Control

Fort Myers Estate Tax Planning Attorneys

Helping Your Loved Ones Benefit from the Most of Your Estate

When you’re preparing a comprehensive estate plan for your loved ones, it’s important to consider how taxes will play a role in your affairs after you pass on. The attorneys at Dorcey Law Firm, are prepared to help you preemptively handle how taxes will affect your estate once you pass on.

What people often deem as an “inheritance tax” or “death tax” is actually a series of three taxes regarding the transfer of wealth from an estate to its beneficiaries. These taxes are the estate tax, gift taxes, and generation-skipping transfer taxes. Each tax can have important implications for you and your loved ones, which your estate tax planning attorney in Fort Myers can explain further.

What 'Portability' Means for You & Your Spouse

Consult with your attorney to find out how your estate plan and gifting can function under portability. Portability is a relatively recent concept in estate planning that allows a surviving spouse to inherit the deceased’s tax exemption without using “A-B Trust” planning. In order to qualify for this inherited exemption, however, you must file certain paperwork and meet other requirements. Speaking with our estate tax planning attorneys in Fort Myers can help you understand how portability can impact your estate plan.

Is Your Estate Eligible for Tax Exemptions?

While taxes may be a certainty in life and for many estates, there are four important exemptions that can apply to your situation:

  • The federal estate tax exemption
  • The lifetime gift tax exemption
  • The annual gift tax exclusion
  • The generation-skipping transfer tax exemption

The Lifetime Gift Tax Exemption

As of 2023, the lifetime gift tax exemption is set at $12.92 million. This means that over the course of your lifetime, you can gift this total value before a gift tax is triggered. For married couples, each spouse is each permitted the $12.92 million limit, which means that together a couple can give away $25.84 million before a gift tax must be paid.

The Annual Gift Tax Exclusion

As of 2023, you can give one tax-free gift of up to $17,000 to one person per year. As with other exemptions, individual spouses can each gift up to $17,000 to a single recipient without triggering a gift tax.

Generation-Skipping Transfer Tax Exemption

When wealth is passed on from one generation to another that’s two or more generations down the line (or at least 37.5 years younger), the generation-skipping transfer tax can be triggered. An exemption can be claimed to limit how much can be taxed when you want to pass on your wealth to a grandchild or great-grandchild.

At Dorcey Law Firm, we offer a free consultation to anyone who’s interested in learning more about how we can help them minimize their estate’s taxability. Contact us online or call (239) 309-2870 to learn about your options today!

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