Advanced Estate Planning

High Net Worth Estates

Tax and asset protection strategies for your entire estate

Planning for estate and gift taxes can be a challenge, especially when the tax exemptions between the federal government and Massachusetts differ and the laws keep changing.

At Baker Law Group P.C., we have the unique combination of both financial and estate planning experience to help high net worth individuals develop complete estate plans. These tax and asset protection strategies consider the ever-changing climate for estate taxes and gift taxes through advanced estate planning techniques.

Estates Over $1 Million

In determining the value of your estate, consider the following.

  • the total value of real estate holdings
  • 401(k) and retirement accounts
  • investments
  • life insurance

We will assist you to create an estate plan to minimize your future estate liability. By doing so, you can leave more of your life savings to heirs or charities.

Strategies to Reduce Capital Gains and Taxes

Gifting

For moderate estates and larger, a gift of $500,000 (such as a residence) during your lifetime could subject a beneficiary or beneficiaries to $100,000 in capital gains taxes, assuming a 20 percent combined federal and state tax rate. Depending on the value of the total estate, this same property left to someone at death may not be subject to any estate or capital gain taxes. Consider estate gifting strategies to increase the benefit to your beneficiaries.

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Family Limited Partnerships (FLPs) and

Limited Liability Companies (LLCs)

Family Limited Partnerships (FLPs) and Limited Liability Companies (LLCs) can be useful for estate tax planning purposes, as well as asset protection purposes, particularly for clients with real property, business holdings, and a high net worth. These entities can also be effective in providing a mechanism to gradually transfer not only property or business interests, but also the management and related responsibilities of such wealth.

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Charitable Trusts

With charitable planning, substantial tax benefits can be obtained by properly planning with charitable entities including Donor Advised Funds, Charitable Remainder Trusts, Charitable Lead Trusts, and Foundations. If you are charitably inclined and you own assets which have highly appreciated or have a large net worth, you may benefit by creating a charitable trust. These techniques can assist in reducing capital gains, gift inheritance and/or estate taxes.

FEDERAL AND STATE ESTATE TAX EXEMPTION AMOUNTS

  Massachusetts Federal Highest Rate Exclusion
2018 $1,000,000 $11,200,000 40% $14,000
2019 $1,000,000 $11,200,000 40% $15,000
2020 $1,000,000 $11,200,000 40% $15,000

Contact Us

Complete our online form to Schedule a Free Consultation or call Baker Law Group at 781-996-5656 or 800-701-0352 to set up a confidential meeting. Consultations are available by phone or at one of our offices in Hingham, Plymouth, Brockton, and Holliston.