Inheritance tax, also known as estate tax, is a tax on the value of an individual’s assets at the time of their death. This tax can be a significant burden on your loved ones, potentially reducing the amount of wealth they receive. However, there are strategies we can employ to help minimize the impact of inheritance tax and ensure that your assets are distributed according to your wishes.
One such strategy is gifting. By gifting assets to your loved ones during your lifetime, you can reduce the value of your estate and potentially reduce the amount of inheritance tax owed. However, it is important to understand the limitations of gifting and to work with a financial advisor to ensure that this strategy aligns with your overall financial goals.
Another strategy is to establish trusts. Trusts can be used to transfer assets to your loved ones while also providing additional benefits, such as creditor protection and the ability to control the distribution of assets. Trusts can also be used to support charitable organizations and leave a legacy beyond your immediate family.
Proper estate planning is also critical in helping to minimize the impact of inheritance tax. This includes creating a will, updating it regularly, and utilizing trusts and other tools to create a strategy for your assets to be distributed according to your wishes. By working with a financial advisor who specializes in legacy planning, you can develop a comprehensive strategy for preserving and passing on your wealth.
At OneAscent, we believe in the importance of Biblical stewardship and leaving a legacy for our families. We understand the complexities of inheritance tax and the importance of proper estate planning. Our team of financial advisors can work with you to develop a customized strategy that aligns with your values and financial goals. By integrating Biblical principles into our planning process, we can create a comprehensive plan for your wealth to be used to support your family and help advance God’s Kingdom in the world.