Five Ways to Minimize Estate Tax
1. Don’t Procrastinate: The earlier you plan, the more likely you are to miss possible tax amounts that could be avoided.
2. Create an irrevocable trust for your life insurance policy: Creating such a trust can remove your insurance policy from your estate to reduce the gross estate for estate tax purposes.
3. Give before you’re gone: Giving while you’re alive eats into your gift tax exemption, but it reduces your estate for estate tax purposes.
4. Obtain a current valuation of your assets: An appraisal is recommended, otherwise the IRS can disagree with your valuation of the asset.
5. Consider the value of your business in lifetime gifting strategy: Make gifts during life that will reduce your estate on the back end.
See Jennifer Chappell Smith, 5 Considerations that May Help Minimize Estate Tax, Wells Fargo, May 13, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.