Estate Tax Planning

Strategies to Limit Taxes and Preserve Wealth

Raleigh, North Carolina, Estate Tax Planning Lawyers

The problem with estate taxes is that the rules keep changing. With the proper approach, however, you can plan for this uncertainty in the tax law and minimize or avoid taxes when your estate transfers to a spouse or children.

Armor Trust Attorneys provides insights and strategies to enable clients with significant assets to avoid mistakes that would trigger unnecessary taxes. Our Raleigh law firm counsels families and individuals in Wake, Durham, Orange, and Chatham Counties. We guide you to legally sound strategies for limiting estate taxes, finding the solution that best fits your unique circumstances.

The Estate Tax Exemption and Planning Alternatives

Current law enables a married couple to exempt $2 million in assets from the federal "death tax." In 2007 and 2008, the first $2 million is tax-free to heirs, but beyond that threshold, the IRS extracts 45 percent of unprotected proceeds. This exemption rises to $3.5 million in 2009, but there will be no tax in 2010. In 2011, the estate tax is supposed to be reinstated with an exemption of $1 million and a top tax rate of 55 percent. Some speculate that Congress will act before 2010 to change the formula again, while others believe Congress will do nothing or repeal the estate tax all together.

If estate taxes are likely to apply when you or your spouse pass away, we can explore various instruments to shelter assets as much as possible. These trusts are known by many names (disclaimer trust, bypass trust, credit shelter trust) and work in different ways. We can explain the options for credit exemptions and help you choose the simplest route appropriate for you:

An Irrevocable Life Insurance Trust (ILIT), if created properly, will remove death benefits paid to the trust from the estate of the insured. An ILIT can also be set up to provide benefits to the insured's surviving spouse.
A Qualified Personal Residential Trust (QPERT) is used to transfer a personal residence to family members without incurring federal estate tax on the trust property.
A Family Limited Partnership can be formed to hold family businesses or investments. It can protect assets such as a family farm, timberland, or family-owned business.

The Solution That Serves Your Needs

Our estate tax planning lawyers have the knowledge to advise and the commitment to protect your interests. We take the time to review your financials, your goals, and your risks in order to identify the tax minimization strategy best suited for you.

Walt Sheffield and Erica Wehner offer more than 25 years of experience and exclusive focus in estate planning, trust management, and wealth preservation. Contact our Raleigh office at (919) 571-4398 to arrange a consultation.