Do You Need an Estate Tax Planning Lawyer?
The federal estate tax exemption limit has increased dramatically over the last few years. This is good news for many people! Estates that fall below a certain threshold of value will be exempt from estate taxes. For 2019, the federal estate tax exemption is:
- Under $11.40 million in assets (for a single person)
- Under $22.80 million in assets (for a married couple)
An estate includes everything that you own such as your home(s), car(s), savings, stocks, cash, personal property, life insurance, retirement accounts, etc. An estate tax planning attorney can help you determine which of your assets are taxable and what total tax liability would be placed on your loved ones. This type of lawyer can also help you find ways around estate taxes such as developing a trust to shield your loved ones from estate taxes.
Colorado Estate Tax Laws
Colorado does not have an estate tax. In fact, there are 39 states that do not have estate taxes. Likewise, there is no inheritance tax in Colorado and no gift taxes on amounts of less than $15,000 per person, per year (for 2019). All of these reasons make it more appealing for people to retire in Colorado and leave their estates to loved ones.
As with most legal affairs, federal and state estate taxes can be complicated to understand. You want to make sure that your beneficiaries are not burdened with extensive taxes on their inheritance from you. The Denver estate lawyers at The Brown Law Firm, LLC can help you understand what estate assets can be taxed in Colorado. We can also create and/or modify the right documents to protect your estate, avoid or minimize state and federal taxes and reduce lengthy probate court costs. Actions such as making sure you have beneficiaries listed on insurance policies, giving monetary gifts to loved ones while you are living, setting up the right type of business (if applicable) and purchasing the right type of life insurance are just a few of the things we may recommend for your unique situation. Contact us today at (303) 339-3750 or send us a message online to start the conversation.