How can I protect my assets from taxes?

Protecting your assets from taxes is an important consideration when making your will and other estate planning documents. In the state of Washington, there are several strategies that can be taken to help protect your assets. Some strategies to consider include utilizing trusts, making use of the exemptions and deductions the state offers, and planning your estate ahead of time. Setting up a trust is a great way to protect your assets from taxes. A trust is a legal agreement between you and the trustee, wherein you give the trustee the right to manage or own property as directed in the trust agreement. The trustee is responsible for paying the taxes on the trust assets, thereby reducing the taxable estate. Washington provides both exemptions and deductions that can be used to protect your assets from taxes. The state provides an exclusion on the sales of a primary residence, as well as a deduction for home mortgage interest payments. Other deductions include a limited amount of retirement plan contributions, social security and pension benefits, and medical expenses. Finally, it’s important to plan your estate ahead of time. By knowing your state’s specific rules and regulations, and planning your estate properly, you can ensure that the estate is properly structured to help reduce any potential taxes for your heirs. Additionally, consider speaking to a qualified estate attorney who can provide further advice on how to protect your assets from taxes.

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How can I protect my assets from taxes?

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