At Davis Law Firm, P.A., we are often asked to provide advice to our clients regarding minimization of tax liabilities both during life and after death. We assist our clients in developing estate and gifting plans to minimize income, estate and transfer taxes so that they can maximize the assets they are able to pass on to their heirs.
Each state treats transfer taxes differently. Many states impose an estate tax, which is paid by the deceased person’s estate, and/or a gift tax; others impose an inheritance tax, which is paid by the beneficiaries; and others allow an estate to transfer to the beneficiaries free of any estate or inheritance tax. Currently, Minnesota imposes both an estate tax and a tax on lifetime gifts, and the IRS requires payment of an estate tax. Recently, Minnesota has made significant changes to its estate and gift tax laws. Contact us if you have questions regarding the changes and how they may affect you.
When developing or reviewing estate plans, our attorneys draft the documents in order to provide for the client’s wishes as well as to minimize tax liability during the client’s life and after his or her death. When dealing with an estate which may be subject to state or federal estate taxes, we advise our clients on a variety of strategies to minimize taxes, such as gifting, disclaimer trusts, irrevocable trusts (including ILITs), charitable bequests, etc. We are experienced in utilizing the special deductions to the Minnesota estate tax available to small businesses and farmers to the greatest advantage. We also assist our clients in choosing which assets to transfer to each beneficiary and how to affect the transfer in a way that reduces the total gift, estate, capital gains and income taxes owed on the transfer.
We are also able to assist our clients by preparing both federal and state fiduciary income tax returns (which often must be filed by personal representatives within open probates and trustees during trust administrations), as well as estate, gift, corporate and individual tax returns.