Do you own a small to medium-sized business? Are your assets worth more than a few million dollars? Are you interested in shielding your estate from creditors and taxations in order to preserve as much wealth for your beneficiaries? The attorneys at Strategic Counsel Law Group, L.C. helps high-asset individuals and couples with advanced estate planning to meet their goals of wealth preservation through the use of buy/sell agreements, GRATs, generation skipping trusts, and more.
What is Advanced Estate Planning?
Most people do not have assets great enough to be taxed by the federal government, and because Florida does not have an estate tax on the state level, most can rest assured that none of their assets will be taxed before transferring to their heirs. However, high-net-worth individuals and couples whose estates are worth more than $12.06 million for an individual or $24.12 million for a married couple do need to consider shielding their assets from estate tax
Advanced estate planning also involves planning for unusual or unique estate assets—such as a farm, ranch, or a family owned business—or there are other complicating matters surrounding your marriage/past marriages or estate.
How Estate Taxes Work
In 2022, only estates worth more than $12.06 million for an individual or $24.12 million for a married couple face taxation, though these exact numbers are constantly changing from year to year. Furthermore, only assets worth more than these amounts will be taxed; for example, if your estate is worth $13.06 million as an individual, only $1 would be taxed. Because the rate for $1 million in taxable estate assets is 40 percent, you would end up paying $400,000 in estate taxes (equating to a total tax rate on your estate of roughly 3.1 percent).
Do I Need Advanced Estate Planning?
Not everyone needs advanced estate planning; for many, traditional estate planning (a will, advance healthcare directive, revocable trust, Medicaid planning, etc.) may be sufficient. However, you will likely benefit from advanced estate planning if:
- You own a business
- Your business exposes you to litigation risk
- Your assets are greater than $12.06 million for an individual
- Your assets are greater than $24.12 million for a married couple
- Your assets are greater than $5.49 million (the estate tax exemption is set to revert back to this level by 2026)
- You have children from a previous marriage
- You have children or other beneficiaries with special needs
- You would like to give to charity
- You own real property in multiple states
- You have concerns about creditors
Advanced Estate Planning Tools
- Qualified Personal Residence Trust
- Buy Sell Agreements
- Family Limited Partnership
- Dynasty Trust
- Wealth Replacement Life Insurance Trust
- Grantor Retained Annuity Trust (GRAT)
- Generation Skipping Trust
- Recapitalization via Non-Voting Common Stock
- Charitable Remainder Trust
Call an Advanced Estate Planning Attorney
The more complex one’s assets and liabilities, the more important advanced estate planning becomes. To get started today, call the experienced advanced estate planning attorneys at Strategic Counsel Law Group, L.C. at 813-286-1700 to schedule a free consultation.
