Planning your estate is important to protecting your assets and Beneficiaries upon passing. However, you may be dismayed to learn that despite leaving assets to your loved ones, they may not recover the full funds intended because they may be subject to an Estate Tax. However, it’s important to understand that in many instances, you may be able to take steps to minimize Estate Taxes, if not eliminate them. If you want to learn more about this process, keep reading. You’ll also discover how a Medina, Ohio estate planning lawyer can help you through these matters.

What Are Estate Taxes?

Generally, when someone passes away, the state and federal government will tax the assets and funds transferred to their Beneficiaries. However, Ohio has eliminated state taxes on these transfers. While this is very beneficial, your estate may still be subject to these taxes by the federal government upon your passing.

Generally, these assets are taken from the estate or the Inheritor, depending on how you have written your Will. Regardless, however, the federal government will impose Estate Taxes for estates worth over 13.61 million dollars as of 2024. As such, if your estate is worth 20 million dollars, you will not be taxed on the first 13.61 million, but anything over that amount will be subject to federal estate taxes.

How Can I Minimize Estate Taxes?

If looking to minimize the Estate Taxes your Beneficiares may face following your passing, it’s imperative to understand that careful estate planning can help. Generally, one of the most common options for this process is to create a Trust Fund. However, many different types of Trust can be beneficial for these circumstances, so connecting with an attorney to explore your options for these matters is critical.

Another option is through Marital Transfers. While this allows your spouse to assume your assets upon your passing, it’s important to understand that this only delays the Estate Taxes. When your spouse passes, these assets will still be subject to taxation.

Can an Attorney Help Me With This Process?

As you can see, there are many considerations you must make during this process if you’re looking to reduce your Estate Taxes. That’s why connecting with an attorney is critical. Unfortunately, many assume they can manage this process on their own, which can lead to unfavorable outcomes for their assets and Beneficiaries. Failure to obtain legal assistance may mean your Will, Trust, or Marital Transfers can be deemed invalid, meaning they will not be honored upon your passing.

If you need help, the team at Krause Law is ready to assist. We understand how important planning for the future is, which is why we are committed to helping you receive the best possible outcome. Connect with us today to explore your legal options to reduce your Estate Taxes.