Understanding Estate Taxes
27. 3 ways to reduce estate taxes
We've covered a lot of information in this presentation. Let's quickly review the three ways you can reduce or even eliminate estate taxes.
First, if you are married, make sure you and your spouse use both your estate tax exemptions. You can do this easily by having a tax-planning provision in your revocable living trust.
Next, reduce your taxable estate (and your estate taxes) by removing some of your assets now-by making gifts, transferring your life insurance to an irrevocable life insurance trust, or using some of the other strategies we discussed for your home, business and other appreciating assets.
And finally, you can buy life insurance - through an irrevocable life insurance trust - to replace assets given to charity and/or pay any remaining estate taxes at just pennies on the dollar.