Understanding Estate And Gift Taxes
An estate tax is a tax that occurs when property is transferred from the decedent’s estate. A gift tax applies when one person transfers property to another person, with the intention that the transfer is a gift. These taxes can make it overwhelming for an individual to approach estate planning, and frustrating for a named representative to distribute the assets of a deceased loved one’s estate.
At Chayet & Danzo, LLC, we will explain the complex tax laws to ease the process while you are planning your own life or administering the decedent’s estate. For estate and gift tax questions, contact our Denver, Colorado, estate tax attorneys at 303-872-5980 to schedule a free initial consultation.
Calculate The Taxes On Your Estate
There are several factors that determine your estate tax. You will need to account for your gross estate, which includes real estate, insurance, personal property and money in your bank accounts. Once you determine the total fair market value of your gross estate, you need to account for your loans and debt.
After you calculate your debt, you can deduct the amount of debt from your gross estate. This leaves you with your taxable estate. After you have deducted your loans and debts, the value of lifetime taxable gifts is added to your total. The tax will be computed from your new total.
There are other considerations that apply when calculating your estate tax, and the attorneys at Chayet & Danzo, LLC, will help compute the tax on your estate.
Reducing Or Eliminating Estate Taxes
You can also reduce taxes on your estate by placing your property in trust. One of the benefits of a trust is that your assets held in trust are protected. The estate tax on trust assets may be reduced or eliminated in its entirety. Our law firm can assist you with creating a trust for the benefit of yourself or others.
Contact A Colorado Attorney For Advice On Gift Taxes
At Chayet & Danzo, LLC, we make sure you understand the steps you need to take in order to calculate your estate taxes. Contact our Denver law firm at 303-872-5980 to talk to an estate tax attorney. We offer free initial consultations.