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At Warner & Schwartz, we help clients understand and minimize estate, trust, and gift taxation. Whether you have a high net worth with several trusts in your estate plan or you simply want to make a large gift to a child, we are here to help. We can help you understand several strategies and tax implications of your gifting and estate plan to comply with complex requirements while reducing taxes.

West Palm Beach Gift Tax

Laws governing gift tax are notoriously complex. Failing to properly file with the IRS can lead to an unpleasant surprise, but the gift tax exclusion can also be a valuable means of reducing the size of a taxable estate. We help clients with estate and gift tax planning as well as gift tax return preparation.

If you make large gifts during your life, you may owe a federal gift tax. Under current federal law, each person can give away up to $5.45 million during their life without owing estate taxes or gift taxes. This amount is exempt. There are also gifts that are not subject to the gift tax such as gifts to a spouse, medical expenses you pay, and tuition if you pay it directly to the school.

Each person also has an annual exempt gift amount of $14,000. Gifts that do not exceed this annual limit (which is per recipient) are not taxable.

When a gift is taxable, the person who gives the gift is required to file a gift tax return and pay the tax. This gift tax will not be owed until the cumulative taxable gifts surpass the $5.45 million exemption.

These exempt gifts can systematically reduce the size of your taxable estate and potentially give family members income tax savings. To reduce estate taxes, the basic premise involves gifting property or cash up to a specific amount each year that remains below $14,000 (or $28,000 for joint gifts from a married couple).

West Palm Beach Estate Tax

The federal estate tax of 40% is levied against an estate with a value that exceeds $5.49 million ($10.98 million for married couples). One of the primary goals of estate planning is implementing legal strategies to reduce the size of a taxable estate to lower or eliminate estate taxes.

At Warner & Schwartz, we assist clients with estate tax preparation. Our accounting firm can help you plan for the future to estimate how much your estate will be taxed and seek strategies to reduce your heirs’ tax bill.

West Palm Beach Trust Tax

 

There are many types of trusts, but all operate in the same basic way: an arrangement in which a third party holds assets on behalf of a beneficiary. A trust can be set up in many ways and specify how and when assets will pass to beneficiaries. Unlike most assets, trusts do not pass through the probate process at death. Most trusts are used to reduce estate tax, protect property in an estate, and avoid probate.

We assist clients with transparent trust accounting and reporting services. We can also advise you on the best type of trust to establish based on your needs and the unique circumstances of your family.

Interested in learning more? Warner & Schwartz provides a FREE initial consultation to all prospective clients, call us at (561) 686-8666 to get started.