In 2021, the federal estate tax exemption is $11.58 million. This means that the vast majority of American families won’t trigger this tax upon their death. However, state estate tax exemptions could still apply to depending on your primary state of residence.
One of the most common reasons for people to explore the possibilities of creating a trust for estate planning purposes is to reduce estate taxes. Your heirs could face an unnecessary second round of probate and estate taxes in the event that you own property in a second state.
With a trust all the property will fall under the trust when it has been appropriately titled into there, meaning less paperwork or frustration for your heirs and an overall reduction in the cost of settling your estate.
To discuss show this could make the most sense for you to pass on your assets to beneficiaries, schedule a consultation with a trusted estate planning lawyer who has a track record of counseling clients on options when it comes to trusts. There are many different kinds of trusts available to you depending on your individual goals and what you hope to achieve in creating and funding a trust.
For more information, you’ll need to consult with a dedicated estate planning lawyer to share specific information about your family and your individual intentions to determine that the trust you have selected is most appropriate for your planning purposes.
Need support in creating or updating your strategy? Call our Pasadena law office for assistance with your estate plan.