Estate taxes, often referred to as "inheritance taxes" or "death taxes," are levied on the transfer of an individual's assets upon their passing. The Federal Estate Tax Rate is 40%. This tax is applied to the total value of a deceased person's estate before distribution to their heirs. The rate of taxation can vary depending on the size of the estate and the specific laws of the jurisdiction in which the estate is settled. Remember, Estate Planning is the general field of planning and preparing for your eventual passing, which includes the creation of trusts, wills, powers of attorneys, etc. Estate Tax Planning is a specific focus of Estate Planning, which prioritizes increasing the amount of wealth transferred from one generation to the next by mitigating unnecessary tax-burden.

In the United States, the federal government imposes an estate tax on estates exceeding a certain threshold in value, which is periodically adjusted for inflation. Some states also levy their own estate taxes, with varying exemptions and rates. It's important to note that not all estates are subject to estate taxes; only those that exceed the exemption limit set by law. Proper estate planning can help in legally minimizing these taxes, ensuring that a larger portion of the estate is preserved for the beneficiaries. At Wealthstone, we provide expert guidance in estate planning to navigate and potentially mitigate the impact of estate taxes, ensuring your legacy is passed on according to your wishes in the most tax-efficient manner possible.

At Wealthstone, we advise high-net-worth individuals, particularly those with a current net worth exceeding $25 million for married couples or $12 million for single individuals, to engage in proactive estate tax planning. This is especially pertinent for those anticipating a significant increase in net worth due to imminent financial events. Furthermore, it is crucial to note that with the anticipated expiration of the Tax Cuts & Jobs Act of 2017 (TCJA) in 2025, individuals with a net worth of $12 million (married) or $6 million (single) may find themselves subject to estate taxes as exemption thresholds are expected to decrease, therefore it would be wise to begin the discussion sooner rather than later.

Business owners, real estate entrepreneurs, senior corporate executives, and those holding rapidly appreciating assets are particularly encouraged to consult with us. Estate tax planning is an essential component of wealth management, and our focus extends beyond wealth preservation to maximizing your overall wealth. Our approach involves comprehensive planning discussions and the deployment of sophisticated strategies that are often underutilized or overlooked by advisors lacking specialized expertise in managing estate tax liabilities. With the current Federal Estate Tax rate at 40%, failure to effectively navigate estate tax implications can result in substantial financial loss. Our commitment is to safeguard your wealth by meticulously planning to mitigate potential estate tax liabilities, ensuring the preservation of your financial legacy for future generations.

Our clients at Wealthstone Private Wealth Management reap the benefits of our extensive experience and deep knowledge in estate tax mitigation strategies. We dedicate considerable time to educating our clients about the strategies that best suit their specific circumstances. Estate planning, a critical component of our in-depth financial discussions, allows us to assess and address potential estate tax liabilities.

During these planning sessions, if we identify a future estate tax liability, we not only inform you of the potential amount but also evaluate the necessity and complexity of estate planning strategies for your situation. We offer models of different strategies, discuss their advantages and drawbacks, and answer any common queries you might have, ensuring you have a clear understanding and are well-equipped to make informed decisions about your estate planning.

We maintain a comprehensive network of skilled estate planning attorneys, each handpicked for their expertise in estate law. Understanding the personal and intricate nature of estate planning, we connect our clients with these experts to cater to their specific needs, from drafting simple wills to structuring complex trusts.

Moreover, Wealthstone is committed to being actively involved in your estate planning process, to the extent that you are comfortable with. Our team can participate in discussions with your chosen attorney, ensuring that your estate plan aligns seamlessly with your overall financial strategy. This collaborative approach ensures that every facet of your estate plan is considered within the broader context of your financial goals, providing a holistic and cohesive wealth management experience. At Wealthstone, our goal is to ensure that you feel fully supported and confident in your estate planning decisions, backed by the expertise of both our team and our trusted network of attorneys.