Medlin & Medlin, PA
Attorney at Law
(704) 786-8173
Concord, NC 

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ESTATE PLANNING TRUSTS AVOIDING DEATH TAXES IN THE LARGER ESTATE

Let me tell you something you may not know about the use of trusts to avoid death taxes.

The federal taxation code allows an individual to leave a substantial amount of his estate to anyone without paying any death taxes at all.

However, above that amount, death taxes will be due and payable at approximately forty-five percent (45%) of your estate.

This is a huge tax burden.

Many couples fall for a trap set by the tax code because they know husband and wife may each leave the other an unlimited amount of assets death tax free.

They mistakenly believe that it is best to do so because they only know half the story.

Leaving that total estate to your spouse only takes advantage of the amount excluded from death taxes one time.

Upon the death of the second of the couple, the entire estate above the exclusionary amount is hit with the heavy death tax of nearly half your assets.

This is where the savvy attorney who practices estate planning every day can help the couple avoid this costly predicament.

What I would do is set up a trust so that upon the death of the first of the couple, leave an appropriate portion of the estate  in trust for the benefit of the survivor and utilize the exclusionary amount the first time so as to avoid death taxes.

Upon the death of the second party of the couple, the exclusionary amount is used the second time, doubling the amount that can be passed death tax free.

This is one example of how a carefully crafted estate plan can help the unique needs of this couple in avoiding the death tax.

In nearly 40 years of law practice, I have handled thousands of effective estate plans.

My job is to take care of my clients.

Call me.