St. Louis Tax Planning Trust Lawyer
When you create a trust or other estate plan, there is a lot to consider. You must determine what will happen to your assets now and after you are gone. You will also need to make sure that you have protected your loved ones from hidden fees and expenses. This includes tax planning. This can make sure that you are up to date on all necessary state and federal taxes associated with your trust.
Taxes are complicated in any scenario, but when they intersect with trusts and estate planning accounts, they are particularly confusing. Fortunately, you do not need to navigate this process alone. With the help of a tax planning trust attorney, you can feel confident that you have considered all necessary expenses and paid what you owe.
Our team of estate planning attorneys at Stange Law Group has significant experience in tax planning for trusts. We can help you navigate your trust’s current and future tax obligations.
Stange Law Firm: Your St. Louis Tax Planning Trust Attorneys
For many years, our team at Stange Law Firm has been providing the people of St. Louis with personalized estate planning options, including wills and trusts. Our mission is to create an individualized plan for each of our clients so that they feel confident and secure about their family’s future. No matter what situation you are in, we can create an estate plan that supports your family for generations.
Our experience in this field spans decades. However, we understand that you are likely going through the estate planning process for the first time. We also know that creating a plan for the end of your life is a vulnerable process. It is also one that can trigger significant emotions. Because of this, we approach each of our clients with the utmost care and respect. You can trust us with your vulnerability and feel secure with the estate plan that we develop together.
Stange Law Firm offers comprehensive estate planning services to St. Louis and the surrounding areas.
What Is a Trust?
If you have a trust or are exploring creating one, it is essential that you understand the basics. This can allow you to make informed decisions throughout the estate planning process.
A trust is an estate planning account in which a trustor places their assets. These assets are held by a trustee, who will be responsible for distributing them to beneficiaries when the trustor passes away. Living trusts allow the trustor to make changes and access their assets throughout their lifetime. An irrevocable trust does not allow the trustor to make changes once they sign the documents.
Because the trustee holds the assets on behalf of the trustor, most trusts avoid probate court. Probate court is reserved for the assets of a deceased person. Since the trustee did not die, and they controlled the assets, there is no need for probate. This is a significant benefit of trusts and one that helps to avoid certain taxes associated with probate court.
Although trusts may be exempt from certain probate taxes, they are not exempt from taxes altogether. The federal government collects taxes on trusts that are $12 million or more for individuals. For married couples, these taxes are $24 million or more. Missouri does not collect additional state trust taxes.
If you create a living trust, you may take money from the trust for your own needs. However, the amount you take will be taxed as trust income. This is an important consideration that may affect the amount that your beneficiaries ultimately collect. It is also possible for your beneficiaries to have to pay additional income taxes when they receive their inheritance from the trust. This will depend on its type, size, and their personal circumstances.
Why Do I Need a Trust Tax Attorney?
Taxes are challenging and often feel confusing. When you have an account as significant as a trust, it is especially important that you take the time and effort to do your taxes correctly. The most effective way to do this is with help from a trust tax attorney.
A trust tax attorney can help you navigate the IRS and any problems that your trust encounters. Doing these actions on your own takes lots of time and attention. It also requires specific knowledge of tax law. For most people, it is worth investing in a trust tax attorney to ensure that they are not paying more in taxes than they need to. This can also make sure that their taxes have been done correctly.
Irrevocable Trusts and Tax Benefits
If you opt for an irrevocable trust, there may be tax benefits for you and your family. Gift taxes are often reduced or eliminated for irrevocable trust contributions. Similarly, the appreciation of assets in an irrevocable trust is usually not subject to additional taxation. Depending on the size of your trust and the value of your assets, this benefit can save a significant amount of money.
Of course, creating an irrevocable trust prevents you from being able to access your assets during your lifetime. However, if this is not a financial hardship for you, or you have alternative options for financial support, an irrevocable trust may be a good option for you.
A great way to maximize your trust tax benefits is by working with a qualified trust tax attorney. Not only do we understand the intricacies of trusts, but we also have an intimate knowledge of tax law. We use this intersection of information to develop a trust system that most greatly benefits your family.
Contact Stange Law Firm
It is difficult to navigate end-of-life plans, especially when there are confusing taxes and tax laws involved in the process. Our team has many years of experience working with trust taxes. We feel confident that we can guide you in the right direction with your trust. Whether you have already created a trust, or you want to begin the process, our team is qualified to help.
For more information about our services, or to set up a consultation, contact Stange Law Firm.
Greene County, St. Louis Office : 901 E. St. Louis, Suite 404, Springfield, Missouri 65806