How can I reduce the estate tax burden?

Estate taxes, or death taxes, are taxes imposed on the transfer of a person’s property or assets after they die. In West Virginia, the estate tax law is administered by the West Virginia State Tax Department. One of the most common ways to reduce the estate tax burden is to create a trust. By setting up a trust, you can manage the distribution of your assets in a way that reduces the amount of the estate tax liability. For example, you can transfer some assets to a trust so that they are excluded from your estate and therefore not subject to estate tax. Another way to reduce the estate tax burden in West Virginia is to maximize the transferable tax exemptions that are available. Every year, the West Virginia State Tax Department sets the amount of the transferable tax exemptions that can be received or given. By transferring your assets within the allowable amount of money, you can reduce your estate tax burden. Finally, gifting assets to family members or charities can also reduce the estate tax burden. By gifting assets such as cash or property, you can reduce the taxable amount of the estate. Be sure to consult with an experienced estate planning attorney to make sure the gifting of assets is done legally, as any mistakes could result in a tax penalty. By utilizing the strategies outlined above, you can reduce your estate tax burden in West Virginia. Remember to also consult with an experienced attorney for help with estate planning decisions.

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How can I reduce the estate tax burden?

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