Sentences with phrase «avoid federal estate taxes»

With a trust, you can avoid federal estate taxes, charged at your death and based on the value of the entire estate before any beneficiaries receive the assets.

And life insurance can also avoid federal estate taxes and state inheritance taxes when setup properly.

The federal gift tax exists for one reason: to prevent citizens from avoiding the federal estate tax by giving away their money before they die.

Not exact matches

This discussion also does not consider any specific facts or circumstances that may be relevant to holders subject to special rules under the U.S. federal income tax laws, including, without limitation, certain former citizens or long - term residents of the United States, partnerships or other pass - through entities, real estate investment trusts, regulated investment companies, «controlled foreign corporations,» «passive foreign investment companies,» corporations that accumulate earnings to avoid U.S. federal income tax, banks, financial institutions, investment funds, insurance companies, brokers, dealers or traders in securities, commodities or currencies, tax - exempt organizations, tax - qualified retirement plans, persons subject to the alternative minimum tax, persons that own, or have owned, actually or constructively, more than 5 % of our common stock and persons holding our common stock as part of a hedging or conversion transaction or straddle, or a constructive sale, or other risk reduction strategy.

Because the federal estate tax imposes a lump sum obligation upon by the estate that is payable within 9 months of the date of death, a huge estate planning objective has been to avoid it at all costs.

Additionally, SPL can avoid state inheritance and federal estate taxes.

Important federal estate tax planning is needed to avoid the tax consequences assessed upon the estate holder's death.

In this way, federal estate taxes can be limited or avoided.

The main advantage here is that the proceeds from the death benefit would not be included in the employee's taxable estate since the death benefit would pay out to the ILIT, thus avoiding exposure to the federal death tax.

Additionally, these policies can be structured to avoid federal estate and state inheritance taxes.

When you transfer real estate to your donor advised fund, you avoid capital gains taxes and qualify for a federal income tax deduction based on the fair market value of the property when you itemize on your taxes.

With careful planning, donors may be able to take advantage of federal tax benefits that include avoiding capital gains taxes on certain appreciated property and reducing income and estate taxes.

If your estate is large enough to trigger New York or federal estate tax, placing assets in a trust can avoid that tax, which can be substantial.

Prenuptial agreements are vital elements of a well - conceived estate plan that may also include a testamentary will, powers of attorney, business operating agreements, and trust agreements to reduce or avoid federal estate and gift taxes.

Additionally, SPL can avoid state inheritance and federal estate taxes.

In this way, federal estate taxes can be limited or avoided.

It is important to know that naming your revocable trust or your family trust as the beneficiary of your life insurance will not avoid state and federal estate tax.

The alternative minimum tax was devised to ensure that individuals, trusts, and estates that benefit from tax preferences do not avoid paying any federal income taxes.