Are your life's savings at risk? The answer depends on how much your estate is worth at the time of your death. So your goal should be to find a way to keep the estimated value of your taxable estate from going higher, while still ensuring that you and your heirs enjoy access to your assets when they are needed and wanted.
Generally, your estate must pay taxes for every dollar it is valued over the applicable exclusion amount. Fortunately, there are several ways to reduce your estate tax exposure, while still providing for your heirs after you're gone.
Here's a sampling of some basic estate tax savings ideas for you to consider with your tax and legal advisors:
- Unlimited Marital Deduction—Defer all or a portion of any estate taxes until the death of your spouse.
- Appropriate Will and Trust Arrangements
- Wills—The foundation of your estate conservation strategy
- Purpose of Trusts
- Types of Trusts
- Marital and Credit Shelter Trusts—Defer estate taxes and help your spouse manage the assets after you're gone. You can also take advantage of the applicable estate tax exemption amount for each of you.
- Annual Gift Tax Exclusion—What it is, how it can reduce your estate tax exposure, why you should consider gifting now.
- Charitable Giving—It's generally fully deductible from your estate.
- The Role of Life Insurance—It can help fund your estate tax liquidity needs and help preserve the value of your estate for your heirs.
Insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Each is a Prudential Financial company that is solely responsible for its own financial condition and contractual obligations. Our policies contain exclusions, limitations, reduction and terms for keeping them in force. A licensed financial professional can provide you with cost and complete details.