Missouri Lawyers for State and Federal Estate Tax Problems

At the Law Office of Kenneth P. Carp, we help clients avoid and manage anticipated estate tax liability through effective planning, and when necessary, we work with people who need assistance with tax problems that come up during the Missouri probate process. Contact us in Clayton to learn more about your options for managing and resolving estate tax liability.

We take a balanced approach to tax problems in estate planning. Most people have a variety of objectives and priorities in planning for their family's security, and tax considerations represent only one set of problems that need to be resolved in preparing your estate plan. We make sure that tax issues get the attention they deserve in your estate plan, but not to the point where they dominate all other factors.

Missouri Estate Tax Planning Attorneys: Call 314-685-8928 or 888-342-3049

After disappearing entirely in 2010, the federal estate tax returned in 2011 for decedents' estates with taxable property in excess of $5 million in value, with amounts exceeding that value taxed at a rate of 35 percent. An estate valued at $6 million would therefore generate federal estate tax liability of $350,000, or 35 percent of the $1 million of estate value that exceeds the $5 million exempted from federal estate taxation. Missouri's estate tax system is closely tied to federal estate tax policy, and applies a lower tax rate under the same exemption scheme.

People who own property valuable enough to trigger estate tax liability in the future can choose from a number of options for reducing the value of the estate and minimizing exposure to estate tax liability. The right strategy in a given case will depend on the nature and anticipated appreciation of particular assets, as well as broader estate planning, business or family objectives.

If you anticipate that much of your estate tax liability might result from the appreciated value of equity securities, you might consider a charitable remainder trust as a way of taking those stocks out of your estate. You would continue to enjoy the benefit of dividends during your lifetime, and you will be able to claim substantial tax benefits during your lifetime as well. When the stock transfers to a charitable beneficiary at death, its value will not be included in your estate.

Gift transfers to family members can also reduce the size of an estate, but transfers made beyond the annual exemptions will not be effective for the purpose. Additionally, gifts made within three years prior to death will be taxed as if they were included in the estate. An experienced estate tax planning attorney can help you find ways to anticipate and manage both estate and gift tax liability in ways that reflect your current and projected circumstances.

Anticipating and Resolving Tax Problems in Missouri Estate Administration

One of the most important responsibilities the executor of an estate must fulfill is the timely preparation of estate tax returns, whether or not there is any need to pay estate or federal estate taxes. In most cases, the returns will show no estate tax liability, but sometimes the IRS or the Missouri Department of Revenue will challenge the valuations of estate property in the attempt to show that estate taxes are in fact due.

Our attorneys will pay careful attention to the composition of the estate, the distribution of assets through previous gift transfers or trust settlements, and the valuation of such assets as real estate, annuities, insurance policies and securities to make sure that tax returns are prepared accurately and timely. Our ability to prepare estate and fiduciary tax returns that can stand up to challenges and audits can help ensure that your family is getting the maximum benefit of prior estate planning strategies.

For additional information about our ability to anticipate and resolve estate tax problems in Greater St. Louis and throughout the state, contact a lawyer at the Law Office of Kenneth P. Carp in Clayton.

The lawyers at the Law Office of Kenneth P. Carp offer extensive experience to people in Missouri as well as in other states nationwide.