Tax Reduction Strategies Libertyville Request a Quote Reducing tax through a legal method is known as tax avoidance. But using illegal methods to evade tax is called tax-evasion and may get you a federal-conviction. Taking your time to properly prepare your estate plan will make things easier for your heirs later on. The main reason as to why you should plan your estate is so you can preserve the assets and property you have worked your entire life to acquire. By contacting an estate planning attorney and taking the right steps towards tax reduction strategies Libertyville individuals can minimize the taxes will preserve the assets & allow themselves to conveniently pass them to their beloved ones rather than the government. However, before meeting with the estate planning attorney, one needs to prepare a list-of assets & their values, insurance policies, car title information & relevant other documents.Below are some tax reduction strategies Libertyville estate planners can employ for you1. Gifting your assets to your loved ones and childrenYou may take some money out of the estate by gradually giving it away. In case your estate is larger-than the normal exclusion-amount, you may reduce its’ value by slowly giving away $13,000 per/year to each one of your grandchildren, children, or anyone of your loved ones without paying the federal gift taxes. A spouse can gift money too, thus allowing total amount of $26,000 gifting capability-between the 2 of you every year per/recipient. For all financially affluent people, these type of gifts are a great way to aid with educational needs of grandchildren/children or to pass-on legacy without paying the undue taxes2.Choosing a knowledgeable estate planning attorney to protect your Libertyville assetsAlmost 65 % of people with Wills & Trusts use an estate planning attorney, and given the complexity of new tax laws, more-and-more people will need help. A good estate planning attorney should be up to date on all new tax laws & their interpretation. The attorney will help you re-think your tax situation in-light of new tax laws, help you understand and guide you all through the financial transactions, &, most importantly, the attorney will inform you of any new tax saving opportunities & warn you of all the dangerous tax-traps.3. Estate tax elimination strategyA wealthy couple with millions invested-in the stock market may want to leave the future earnings to their kids whilst avoiding estate tax on the earnings. Below is one of the estate tax reduction strategies Libertyville:The parent(s) can set up a Grantor-Retained Annuity Trust (also abbreviated as GRAT) listing the children as beneficiaries.The parent(s) can then contribute, say, $10 million to the already set up GRAT. Under terms of the GRAT, amount contributed-to the trust, plus the interest, should be fully returned-to the parent(s) over a pre-determined period.Whatever amount of return the cash earns in excess-of the interest rate (IRS currently requires 3%) remains in that trust & gets passed onto the heirs, forever free-of estate & gift taxes.4.The Trust Freeze (Freezing the estate value, so that the taxes do not eat up its’ future appreciation)If a wealthy parent intends to leave a collection-of income producing assets, like investment partnerships which own shares to their children, they can “freeze” the value-of that estate at that precise moment, say 20 years before their-death, thus pushing any future-appreciation out of that estate & avoiding what could be high federal estate-tax bills. That’s why this is a smart tax reduction strategy Libertyville individuals should keep in mind.See How Tax Reduction Strategies Libertyville Planners Can Implement Can Protect your Wealth Request a Quote Name Email Address Phone Question Thank you! Oops!