How can I reduce the estate tax burden?

In Kansas, estate taxes are a significant burden for many families, which can make it difficult to preserve the wealth of a deceased person’s estate. Fortunately, there are several strategies for reducing the tax burden for estate planning. First, it is important to take advantage of any exemptions that may apply. Kansas allows a $4 million exemption for estate taxes, and if an estate is worth less than this amount, it will not incur any estate taxes. Other potential exemptions may include assets in trusts and deferred payment plans such as annuities. Second, charitable giving can be used to reduce estate taxes. Donations to qualified charities are tax deductible, so making a charitable donation can help reduce the taxable income of an estate. Third, it is possible to use strategic gifting. By giving away assets to family members or other beneficiaries while still alive, the estate tax burden is reduced. It is important to note that there may be limits on the amount of gifting; for 2020, up to $15,000 per individual may be gifted tax free. Finally, a person can also set up an irrevocable trust. This type of trust can be used to transfer assets to the beneficiaries of an estate without incurring any taxes. It is important to consult a financial or legal professional who is knowledgeable about estate planning law in Kansas when setting up an irrevocable trust. By utilizing strategies such as exemptions, charitable giving, gifting, and irrevocable trusts, individuals can reduce the estate tax burden in Kansas and pass on more assets to their family and beneficiaries.

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How can I reduce the estate tax burden?

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