Can I minimize the amount of Estate Tax I'll owe?
Yes, proper Estate Planning will help you identify and reach the goals you set for your estate. Most of all, it will help you to leave the kind of legacy you want to your family.
Note: Tax laws are subject to change (consult your Tax Advisor)
- Leaving the Estate to Your Spouse - A U.S. citizen can leave all assets to his or her spouse without having to pay federal estate taxes, as long as the spouse is also a U.S. Citizen. While this seems to be a good solution for minimizing estate taxes, leaving a sizable estate to your spouse can create even larger estate tax problems when your spouse dies.
- Leaving the Estate to Your Children or Grandchildren - Federal estate tax applies to assets left to anyone other than your spouse if the amount exceeds the Unified Credit Amount. In addition, a Generation Skipping transfer tax may apply in the case of gifts to grandchildren.
- Giving Away Assets During Your Lifetime - Giving away some of your assets during your lifetime may be a good idea. Remember, you must meet your own needs before giving away your assets. You should also keep in mind that you and your spouse can each give $13,000 adjusted for inflation) per year to each child, grandchild, or any other individual, with no federal gift tax.
- Giving Assets to Charity - This can be a source of valuable tax deductions, and can be a useful part of your estate plan.
First Hawaiian Bank Wealth Management Group provides financial products and services through First Hawaiian Bank and its various affiliates and subsidiaries. First Hawaiian Bank and its affiliates do not provide tax or legal advice.