• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

501-414-8965

Email Us

facebook

Estate Planners of Arkansas

Estate Planners of Arkansas

Wills, Trusts and Probate

  • Home
  • About Our Attorneys
  • Services
    • Trusts
    • Wills
    • Probate
    • Business Law
    • Estate Tax
    • Prenuptial Agreements
  • Blog
  • Videos
  • FAQs
  • Careers
  • Contact Us
Contact Us

The 3 Ways You Can Save on Estate Taxes

October 3, 2018

After working hard for many years to build up a significant amount of wealth, you don’t want it going solely to taxes. While everyone wants to pay their fair share, many want to preserve as much of their estate for the benefit of their heirs.

Fortunately, there are legal tools you can use to save on federal and Arkansas estate tax. Here are some potential options that you can discuss with an attorney.

Leveraging a Living Trust

Since you can control the assets in a revocable living trust during your lifetime, those assets usually form part of your estate. However, there is a specific kind of trust that can help you pay less in estate taxes in 2018: the credit shelter trust.

A credit shelter trust is irrevocable and allows couples to save significantly on taxes. Upon the death of one spouse, the assets in the trust transfer to the surviving spouse. Properly drafted, the trust can allow for the surviving spouse to use the assets while still alive. When the last spouse passes away, the assets are passed on to heirs, not subject to estate tax.

Speaking with an estate planning attorney can help you determine whether establishing a credit shelter trust is the best option for you and the future of your estate.

Life Insurance Trust

Life insurance sounds like an odd way to save on estate taxes. Essentially, this is an irrevocable trust that buys the life insurance policy. Therefore, once it’s paid out, the beneficiary is the trust, and the beneficiaries of the trust can be your heirs. An experienced estate planning attorney can work with you to decide whether a life insurance trust is the best tool for the future of your estate and your beneficiaries.

Giving Gifts During Life

One straightforward way to reduce the size of your estate is to give money away during your lifetime. You can give away up to $14,000 a year to whomever you choose. Any gifted amount that is greater than $14,000 and the giver has to file a gift tax return with the IRS.

By giving your children and grandchildren monetary gifts during your lifetime, they can start to get some of their inheritance now, tax-free, and they can use their inheritance to plan for their future themselves.

Charitable donations are another way to make your estate smaller, and many charitable donations qualify for write-offs during tax season.

Talk to an Attorney

The rules change frequently regarding who pays estate tax and under what conditions. The best way to sensibly plan for the future is to discuss your financial options with an estate lawyer trained in these matters. To learn more or to make an appointment, contact Estate Planners of Arkansas P.A. today at 501-414-8965.

Filed Under: Estate Tax

Primary Sidebar

Contact Information

Estate Planners of Arkansas, P.A.
2504 McCain Blvd Suite 224
N. Little Rock, AR 72116

501-414-8965

501-414-8966

Email Us

Request a free consultation

Click here

Check out our latest blog posts

  • How is Arkansas Probate Law Different?
  • Why Everyone Should Have a Living Trust
  • What Does it Take to Execute a Will in Arkansas?
  • Prenups Are For Anyone, Not Just the Rich!
  • Do I Need an Estate Planner?

Footer

Contact Us

Estate Planners of Arkansas, P.A.
2504 McCain Blvd Suite 224
N. Little Rock, AR 72116

501-414-8965

501-414-8966

Email Us

About Us

Estate Planners of Arkansas, P.A. was founded in 1993. We practice in the areas of Trust, Will, Probate, Estate Taxes and Business Planning. We show people the most economical and efficient way to transfer their assets to their loved ones upon their death. We have prepared over four thousand estate plans. Our other focus is to show business owners how to protect their business while they are alive and how to successfully pass the business to their heirs when they die.

Copyright © 2023 Estate Planners of Arkansas, P.A.  All rights reserved. Return to top