Tax Solutions That Stand The Test Of Time

Helping You Plan For The Future Through A Tax-Advantaged Estate Plan

Estate planning can be a challenging process, both emotionally and financially. If your loved one passes away without wills, trusts or other plans in place, that challenge can be even greater. Having an experienced attorney by your side as you explore your legal options can help protect your interests and prepare for the future. At Bendure & Thomas in Bloomfield Hills, Michigan, our attorneys have navigated the complexities of estate and tax law for more than four decades. This extensive experience gives us the skill and knowledge necessary to help you create an estate plan that provides for your loved ones, protects your assets and avoids undue tax burdens. Our goal is also to make the inheritance process smoother for your loved ones during a difficult time.

How Proper Asset Titling Can Help Heirs Avoid Tax Penalties

A good estate plan does more than say who gets your stuff. It also cuts taxes, avoids legal hassles and protects your loved ones from costly mistakes. One key part is asset titling – how you legally name your assets such as bank accounts, homes, retirement funds or businesses. If you do not title your assets correctly, your heirs could face big tax bills, court delays or even complications with your estate plan.

Why Asset Titling Matters

Let us look at retirement accounts such as IRAs or 401(k)s. The IRS enforces strict rules on how beneficiaries must receive the money after you pass away. If you do not update who gets these accounts or if you forget to name someone, the accounts might go to your estate. That could mean your heirs lose tax benefits and have to pay taxes sooner than expected. Similarly, if you do not title real estate properly, your heirs might miss out on a tax break called a “stepped-up basis” and end up owing more in capital gains taxes.

By titling assets the right way, you can save money for your heirs. For example, certain trusts can help reduce taxes. Here are a few options:

Irrevocable Life Insurance Trusts (ILITs): These keep life insurance money out of your taxable estate.
Grantor Retained Annuity Trusts (GRATs): These let you pass growing assets to heirs with lower gift taxes.
Charitable Remainder Trusts (CRTs): These give you income during your life, offer a tax deduction and keep assets out of your estate.

Our team can also help with gifting strategies. For example, in 2024, you can give $18,000 per person each year without paying gift taxes. There’s also a lifetime gift tax exemption of over $13 million per person. By giving assets like business shares or funding trusts, you can lower estate taxes over time.

State And Federal Tax Rules

Michigan does not have its own estate or inheritance tax right now. However, if you own property or businesses in other states, those states might tax those assets differently. It is worth checking how those rules apply to you.

How We Can Help

For married couples, we can help the surviving spouse use something called the deceased spousal unused exclusion (DSUE). This lets them use any leftover federal estate tax exemption from their partner, which can save a lot on taxes.

We also guide fiduciaries on filing IRS Form 1041 for income taxes. It is important to know what income the trust or estate pays taxes on versus what the heirs pay. This helps avoid extra tax costs.

Exploring Options That Will Protect Your Assets

While the primary concern of those planning their estate is often the fate of their assets, tax concerns are an aspect of estate planning that can be just as significant as distributing property. Our experienced tax attorneys can ensure that you know the legal requirements for both state estate and federal estate taxes, gift taxes, and generation-skipping tax issues. We will guide you through the different options available to you, including wills and trusts as well as other documentation like establishing power of attorney or a health care directive. Together, we will build an estate plan that honors your wishes, streamlines the process for your loved ones and minimizes the tax impact on their inheritance.

Guidance On Tax Issues In Probate

For estates that are already in probate, we can guide you through the probate process and offer guidance on the tax requirements before you. We will help you avoid unnecessary tax expenses and help make this legal process easier during a difficult time.

Protect Your Interests With Our Attorneys At Your Side

Whether you are working to protect your estate or are navigating the division of a loved one’s assets after they have passed away, having a qualified attorney by your side can help protect your interests. Free initial conferences are available by calling our office at 248-782-6869. You can also tell us more about your legal concerns through our online contact form.