St. Louis Estate Tax Planning Lawyer
Why Choose the TdD Attorneys at Law LLC
At TdD Attorneys at Law LLC in St. Louis, we understand our clients’ desire to protect the assets they spent a lifetime accumulating. You want to leave a legacy behind that your family can be proud of. Our team is here to fight for your right to pass these assets on to your surviving family members after your death.
Estate laws are complex. Our estate planning lawyers in St. Louis are dedicated and ready to advocate for you to help avoid excessive taxation on your estate.
We Draft Effective Estate Tax Plans in St. Louis
Our team of attorneys has combined legal experience spanning 20 years. We take great pride in advising our clients across Missouri in how they can minimize their estate tax burdens. You may be able to take advantage of several elements of the estate tax code allowing for the transfer of assets with low or no taxes associated. Our lawyers can examine your unique situation and help you best determine how to leave the maximum portion of your estate to your loved ones.
What Is an Estate Tax?
An estate tax is a tax levied against the transfer of a deceased individual’s estate or assets. This can include the deceased person’s property or real estate, cash, investment and retirement accounts, personal belongings, automobiles, and business interests. While Missouri does not have a state estate tax, federal law imposes taxes on the transfer of a deceased person’s estate.
To calculate an estate tax, the government first assesses the estate’s current fair market value. This is what the estate and all of its assets would sell for now, on the open market with reasonable buyers and sellers. The government will subtract any outstanding debts or liabilities connected to the estate to calculate fair market value. Any assets transferred to spouses are also exempt from the estate tax.
Only the amount of the estate’s market value that exceeds the minimum threshold will be subject to the federal estate tax. This threshold changes year by year. In 2024, it is more than $13.61 million. If an estate’s value exceeds this threshold, it legally must file a federal estate tax return and pay estate taxes. The average value of the tax liability for an estate worth $13.7 million in 2024 is $90,000.
What Is the Difference Between Inheritance Tax and Gift Tax?
Two other types of taxes you may need to address when planning your estate are inheritance and gift taxes. Gift taxes are linked to the federal estate tax; they both share the same tax threshold and tax rate. A gift tax is a federal tax imposed on the transfer of assets from a living person (the donor) to a recipient.
An annual gift tax exclusion value allows donors to give up to a certain amount to recipients each year without incurring the gift tax. Currently, this exclusion is set to $18,000 per recipient per year. There is also a lifetime gift tax exemption that allows donors to give a certain amount total over their lifetime without being taxed. In 2024, this exemption is $13.61 million, or double for couples making joint gifts.
An inheritance tax, on the other hand, is imposed on the transfer of assets from a deceased person’s estate to one or more beneficiaries. Inheritance taxes often occur at the state level rather than the federal level. The tax rate varies from state to state. Missouri currently does not have an inheritance tax.
Do Beneficiaries Pay Taxes on Gifts?
The individual responsible for paying estate taxes depends on the circumstances and type of asset transfer. When a gift is given from a living donor to a recipient, the donor is responsible for paying the gift tax, not the recipient of the gift. If any inheritance taxes are imposed, however, it is the beneficiary or recipient’s responsibility to pay the inheritance tax, in most cases. The amount owed will depend on the value of the gift or inheritance received.
How To Minimize Your Estate Tax Burden
Estate taxation is an integral part of your estate planning that must not be overlooked. Preserving your wealth and hard-earned assets requires correctly navigating the complex topic of estate taxation on a federal and state level. The most effective way to protect your estate now and after you pass away is by working with an experienced estate tax planning attorney in Missouri.
Our St. Louis estate tax planning attorneys are experienced in solving complex issues for our clients. We pride ourselves in providing timely results and helping clients realize creative solutions to obtain their estate tax goals. The federal estate tax currently has the highest tax rate in the U.S. tax code. We understand your options for minimizing tax burdens, and we will advise you of ways you may be able to use them to your advantage.
Call a St. Louis Estate Tax Planning Lawyer Now
At TdD Attorneys at Law LLC in St. Louis, our lawyers’ hands-on approach has helped clients across the state. Let us advise you on how you can minimize your tax burden and pass on greater assets to your family. Protect your legacy and protect your loved ones by contacting us for a consultation. Our attorneys are standing by to speak with you. Call (314) 628-8078 or contact us online.