In New Hampshire there are no inheritance or estate taxes imposed by the state, however, there may be federal estate taxes to consider. While these taxes only apply to estates that contain significant assets and wealth, it is essential to engage the services of experienced tax accountant and estate planning and probate administration attorney.
DE Whiting, LLC provides comprehensive tax and estate tax planning services to a wide range of clients in Concord, New London and Merrimack and Hillsborough Counties. We can help you determine the tax consequences of your estate and design advance plans to minimize these obligations.
What is the federal estate tax?
Currently, the federal estate tax law provides an exemption of $5.45 million for individuals and $10.9 million for married couples – these amounts are adjusted annually for inflation. This means that an individual or a couple can transfer assets up to these amounts without paying federal taxes. For estates that exceed this value, the tax rate is 40 percent which is applied to the excess amount.
The value of an estate is determined by adding all the assets including real estate, bank accounts, investment accounts, automobiles, jewelry, artwork, automobiles, and other personal property and subtracting that amount from the total liabilities.
In addition, there are deductions that can be taken to reduce the value of the estate, including:
- Marital deduction
- Charitable deduction
- Mortgages and debt
- Legal and administration expenses of the estate
However, individuals and families with significant net worth might still have taxable estates even if they take full advantage of these exemptions. In these situations, there are a number of advanced planning tools that can be utilized to reduce the estate tax burden, including:
- Charitable gifting plans
- Life insurance trusts
- Personal residence trusts
- Grantor retained annuity trusts
By having an advance plan, you can prevent your wealth from being lost to estate taxes and ensure that your loved ones are protected. DE Whiting, LLC provides tax and estate planning services to clients of all financial backgrounds, including high net-worth individuals and families. If you need advice on how to minimize your estate tax burden, call our office today for a free consultation.