Estate tax, also known as the “Death Tax,” is a government tax on the transfer of a deceased person’s estate to his family and/or heirs. If you are a high-income earner, it is important to plan and prepare in order to minimize your exposure to the death tax. After working hard your entire life, and having already paid income, sales, and other taxes on your wealth, you do not want the government to seize large portions of your estate after you have passed away.

The state of Louisiana no longer has an inheritance tax. But the Federal death tax can be as high as 40%. Assets subject to the death tax include personal property (homes, vehicles, furniture, artwork, etc.), business assets (property, machinery, equipment, inventory, cash reserves, etc.), and investments (real estate, stocks, bonds, retirement accounts, etc.). If you have a large estate, the death tax is difficult to completely avoid. However, there are several advanced planning tools that can help:

  • Transferring wealth to family members while you are alive
  • Transferring assets to your spouse
  • Creating an Irrevocable Life Insurance Trust
  • Leaving assets in trust
  • Transferring assets into limited partnerships
  • Making charitable contributions

If you are a high net worth individual, you want to make sure your estate stays with your family and out of the hands of the government and court system. Wealth Planning Law Group specializes in advanced estate planning and tax strategies for high net worth clients. We will find the best way to protect your estate and your loved ones. Please contact us at (504) 212-3440 or info@lawealthplan.com to learn more.