IRA Beneficiary
33. Other Ways to Reduce Estate Taxes
There are two other ways to reduce your estate tax burden, which you can use whether you are married or single.
One is to reduce the size of your estate now, before you die-by spending or giving away some if it. For example, each year, you can give up to $12,000* to as many persons as you wish without having to pay a gift tax. If you are married, you and your spouse can give up to $24,000 to each person.
The other way is to buy life insurance. Depending on your age and health, this can be an inexpensive way to pay estate taxes.
There are right ways and wrong ways to do both of these, and we can help you make sure you do them right.
Now you know what estate taxes are, how they can affect your tax-deferred plans, and some strategies you can use so you don't end up saving your IRA for the IRS.
*NOTE: This amount is now tied to inflation and may increase every few years.