Davenport Attorneys Assisting With High Net Worth Tax Avoidance Planning
At the law firm of Schnell & Hancock, P.C., our Davenport and Rock Island lawyers have a depth of knowledge on estate planning strategies and associated taxation that allows us to offer our clients a variety of strategies for avoiding or minimizing tax burdens. With more than 40 years of combined experience, our attorneys can analyze your particular situation and goals and build a plan that helps you reduce or avoid estate taxes. Your heirs deserve to receive the fullest portion of your estate. Do not let unnecessary taxes diminish the fruits of your labors.
Using Strategies to Help Ensure That You Pay Your Fair Share
No one should have to pay more than his or her fair share of taxes. For most people, determining a fair tax burden is a straightforward matter. However, for those who have substantial assets; the question of what is an appropriate tax burden can be more complex. People in these situations should take proactive steps to ensure that they pay their fair share. There are a number of strategies to assist people, including:
Life insurance trusts — These trusts are a vehicle for passing liquidity free of estate tax. This trust holds a life insurance policy on the creator of the trust. Large sums can therefore be transferred for a relatively small annual insurance premium. This type of trust is irrevocable and generally benefits a younger generation.
Generation-skipping trusts — This type of trust allows one to pass assets directly on to grandchildren or other generations. There is currently a substantial tax exemption amount that applies before a generation-skipping tax applies. We will analyze your potential tax burden to help maximize tax avoidance for you and your heirs.
Family LLCs — Limited liability companies (LLCs) are a more sophisticated way to avoid or minimize taxes. Family-owned LLCs can serve a wide range of estate types, including those with substantial non-liquid assets such as a family farm. A family-owned LLC allows a person to retain control as manager of the LLC. This type of structure also allows a person to gift units of ownership over time to his or her heirs through a will or trust, directing the remaining bequests to the heirs upon the person’s death.
Charitable trusts — Continuing a legacy of philanthropic giving can be an enriching personal part of a high net worth estate plan. We have helped many clients form charitable trusts that continue a lifetime of giving, create a lasting community impact, and also reduce estate taxes, where appropriate.
Our lawyers have a strong tax background with experience in the preparation and filing of fiduciary income tax returns, as well as estate and gift tax returns.
Contact Our Lawyers to Learn More About Tax Benefit Tools
If you own substantial assets, it is important to take all tax implications into account when developing or updating your estate plan. To schedule an initial consultation, call 563-359-7112 or contact us online. From our Scott County offices, we provide legal representation throughout eastern Iowa and western Illinois.