108 Wild Basin Road, Suite 250
Austin, Texas 78746
425 RR 2900
Kingsland, Texas 78639

Avoiding Estate Taxes

In January, 2013, each individual U.S. resident was given an exemption equivalent credit against gift and estate taxes equal to the tax on $5 Million, adjusted for inflation from 2011, and an equal exemption from Generation Skipping Transfer (GST) taxes.  Then, in 2017, those exemptions were doubled to $10 Million, adjusted for inflation from 2011, BUT ONLY FOR THOSE WHO HAPPEN TO DIE BEFORE THE END OF 2025.  For 2023, the inflation-adjusted figure is $12,920,000.  Once those exemptions are used up, everything else is taxed at 40%.  Texas currently is one of the few states that has no estate or inheritance tax.

This is an era of huge federal budget deficits.  The federal government is spending about $1.30 for each $1.00 it takes in.  The national debt exceeds $31 Trillion, including the $1.375 Trillion deficit amassed in FY 2021-22, and the Social Security and Medicare “Trust Funds” are projected to run dry in just a few years.  The pressure is on to do something – anything.  As a result, the probability of gift, estate, and GST tax rates being lower or exclusions higher in the next decade seem dim indeed, especially given the partisan political situation in Washington, and the exclusion amounts could be lowered and/or the rates increased.

What will the estate, gift, and GST tax lifetime exclusions be when you die?  Nobody will know the answer to that question until your death is imminent!

The family wealth plans that our clients establish have the built-in flexibility necessary to work as intended under all probable estate and gift tax scenarios.

Paying estate, gift, and GST taxes is optional in that usually it can be avoided with proper planning.  We help families arrange their affairs to avoid ever having to pay those taxes.  However, that kind of planning cannot be implemented quickly and the longer it has time to work, the more it can do.

If your estate is now or could conceivably grow to be more than an inflation adjusted $5,000,000, there are many ways that we can help you and your family avoid ever having to pay estate, gift, or GST taxes and preserve your wealth for your family for generations to come.  CLICK HERE to contact us so we can meet with you and begin planning your family’s future.