There are federal transfer taxes in the United States that can significantly erode your wealth as you are passing it on to your loved ones. These taxes carries a 40 percent maximum rate, and this is certainly an eye-catching figure.
The good news is that there is an unlimited marital deduction. You can transfer unlimited assets to your spouse tax-free, as long as your spouse is an American citizen.
If you are married to a foreign citizen, you could gain estate tax efficiency through the creation of a qualified domestic trust. Your surviving spouse could benefit from the trust throughout his or her life, but the estate tax would not be applied.
Click here to read the whole report or download the PDF which explains what a qualified domestic trust can accomplish and how to implement the strategy.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
- How to Include Cryptocurrency in Your Estate Plan - July 5, 2022
- Estate Planning 101 for the Beginner - June 30, 2022
- What You Need to Know about Long-Term Care Insurance and Medicaid Planning - June 28, 2022
