Advanced Estate Tax Planning for
High Net Worth Estates

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 experience in helping high net worth individuals develop complete estate plans which consider the ever-changing climate for estate taxes and gift taxes, through advanced estate planning techniques.

Estate with $1 Million and Greater in Assets

For people with estates that are above the federal and state estate tax exemption amounts, effective tax and asset protection strategies for the entire estate need to be developed.

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 so you leave more of your life savings to heirs or charities, and not the government.

FEDERAL AND STATE ESTATE TAX EXEMPTION AMOUNTS

Capital Gains, Inheritance Taxes and Lifetime Gifting Strategies

Even for moderate estates, a gift of $500,000 (a residence for example) 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.

Other Tax Planning & Asset Protection Opportunities: FLPs, LLCs & Charities

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. By establishing a FLP or LLC, clients can benefit from certain estate tax discounts, which are available through a properly established and maintained FLP or LLC. Like other entities, the effectiveness of an FLP and LLC is related to its intent and purpose, as well as, to its proper maintenance. For more on business structures and entities, click here.

Charitable Trusts for Reducing Capital Gains, Gift, Estate Taxes

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.

If you do not have an estate plan or the estate plan you have is out of date, or would like to make your existing estate plan more secure, contact Baker Law Group. Our attorneys will quickly and accurately evaluate your estate to create an estate plan tailored to your needs. Through years of practice in the Boston, South Shore, and Metro-west areas, we have developed an extensive knowledge of advanced estate planning in Massachusetts. Call us today at 781-996-5656 or toll free at 800-701-0352, or send us an e-mail to schedule a free case review to discuss the appropriate estate plan for you.