Avoiding Probate Tax

One of the first things that an Estate must do is pay a “Probate” or “Estate Administration” tax. This “Probate” tax is a 1.5% fee that is taxed on every asset that falls into the Estate over $50,000.00. There is no Estate tax payable for the first $50,000.00 of an Estate.

This means for Estates valued at less than $50,000.00, there is no tax payable at all.

There are very smart strategies to help you avoid this probate tax, however, not all strategies are worth the extra complexity and problems that can arise. For example, some clients will transfer assets to their beneficiaries, such as their primary residence, without realizing that this strategy can actually cost the beneficiary much more money in capital gains tax.

There are other strategies that a rather simple to use that allow you to avoid probate tax, however, they are dependent on whether your beneficiaries and Estate Trustees are able to coordinate effectively.

Our firm can help you learn the simple strategies to avoid Probate Tax while avoiding the more complicated and risky strategies.