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Estate Tax Protection Planning for Hawaii Families

You work your entire life to save and have enough money to comfortably retire—and ideally, leave something for your loved ones when you pass away. 

 

During your life, you pay all kinds of taxes: income taxes, property taxes, sales taxes, and so on. And at the end, the government even wants to tax you on the assets you have left at your death. 

This is known as the estate tax, sometimes called the inheritance tax or death tax.

 

The best way to protect your assets and your family’s future from excessive taxation is to hire an attorney experienced in estate tax planning.

 

We can help you reduce—if not entirely avoid—the federal estate tax burden.

 

How Does the Estate Tax Work?


The estate tax is totally separate from federal income taxes and is paid on the net value of all your assets owned at your death.

 

However, there are fairly sizable exemptions to the estate tax, so it’s primarily high net-worth individuals and their families who are affected.

That said, the estate tax rate is a whopping 40%, so we’re talking about potentially massive sums of money being owed by one’s heirs.

 

And that bill must be paid to the IRS within 9 months of the decedent’s death.

 

Exemptions to the Estate Tax

Notably, President Trump’s Tax Cuts and Jobs Act of 2017 nearly doubled the allowable exemptions to the estate tax, ensuring that even fewer families will be affected:

 

  • Estate tax exemption for individuals expanded from $5.4 million to $11.58 million in 2020.

  • Estate tax exemption for married couples expanded from $10.9 million to $23.16 million in 2020.


So unless your estate is valued at more than $11.58 million, you won’t have to worry about the estate tax at this time.

 

But for those who are affected, there are numerous estate planning strategies available that can greatly reduce the amount owed. 

 

We can advise you on the best options for your family.

 

Advanced Estate Planning Strategies

Families with high-value estates face several complex legal and tax issues—and the estate tax is only one of them.

 

We offer a number of advanced estate planning strategies that are primarily aimed at reducing a family’s tax burden.

 

In addition to the estate tax, we also help families navigate the gift tax and generation-skipping tax to pass assets on for successive generations without the risk of estate tax decimating the estate at each generation.

Some of our most popular advanced estate planning tools and strategies include:

 

  • Life insurance trusts

  • Qualified personal residence trusts

  • Grantor retained annuity trusts

  • Asset protection trusts

  • Land trusts

  • Dynasty Trusts 

  • Family limited partnerships or limited liability companies

  • Asset gifting

You worked hard to build your family’s wealth and legacy, so it makes sense to put similar effort into protecting those assets—and that includes protecting them against excessive taxes.

 

Contact us to minimize the potential tax burden faced by your family, so you can maximize the inheritance you pass to them.

NO TIME FOR MISTAKES

 

Learn the 6 Common Major Mistakes Hawaii Families Make When Choosing an Estate Planning Attorney

Let me help you protect the people and things you love to make sure they stay out of Court and out of conflict. 

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CONTACT US

 

810 Richards Street,

Suite 770,

Honolulu, HI 96813

(808) 725-3456

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All information available on this website is for informational purposes only and is not legal advice. You should contact an attorney directly regarding your specific situation. The use of and access to this website or the transmission of information via email or through this website does not create an attorney-client relationship between the Law Office of Keoni Souza, LLC and any users or any other party. Transmission of information via email or through this website may not be secure, therefore confidentiality cannot be assumed.  By using this website or transmitting information via email or this website, the user agrees to this information being collected, stored, or transmitted to a third-party.

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