Estate Tax in Las Vegas
Las Vegas, NV Probate Attorney
The five million dollar exemption originated in 2010 under the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 is now permanent and indexed for inflation. As of 2013, the federal estate tax exemption is $5.25 million for individuals and about $10.5 million for married couples. An individual is allowed to gift people $14,000 annually without affecting their lifetime limit, and couples may combine their annual gift exclusions to make tax-exempt gifts totaling $28,000 per year.
The State of Nevada does not collect estate tax at a state level, nor does it collect state inheritance tax. This means a person who lives in Nevada may only have to pay federal estate and inheritance tax if their estate is over $5.25 million. To learn more about how to minimize or eliminate estate and inheritance taxes, contact our Las Vegas probate attorney at Roland Law Firm.
How to Minimize Estate Tax and Gift Tax in Las Vegas and Henderson, NV
An individual's taxable estate consists of everything a person owns, including their home, other real estate, retirement accounts, and life insurance policies. The estate tax and gift tax are closely intertwined and inter-dependent. To minimize or eliminate possible estate taxes on estates are over the exemption limit, an individual may wish to establish specific types of trusts. For example, an A/B shelter, or a credit shelter trust, is used to eliminate or reduce federal estate taxes by married couples whose estates exceed the federal limit.
Another tool to minimize estate taxes is a qualified personal residence trust, which allows a person to give away his or her house at a discounted price, freeze its value for estate tax purposes, and still maintain residency in the house. When a person establishes a qualified personal residence trust, he or she transfers the title of a house to a trustee, but reserves the right to live in the house for some definite time. An irrevocable life insurance trust is another type of trust beneficial to avoid/minimize estate taxes. It keeps the death benefits of a person's life insurance policy out of the taxable estate, and may be structured to give money to beneficiaries at a specific point in time.
Call our Las Vegas and Henderson probate lawyer today!
Estate tax planning allows for individuals and their families to safeguard their assets and loved ones. At Roland Law Firm, our probate law attorneys and tax attorneys have the ability to help clients inventory and evaluate their estate, as well as advise them as to which items are subject to estate tax.
A personal representative has nine months to file an estate tax return, and we have helped numerous clients file tax returns for their decedent's estate correctly and on time.Our firm's lawyers,have extensive tax planning experience, and may help clients create personalized estate tax plans to help them avoid or minimize their estate's taxes.
Contact our firm today!