Estate Planning In Tampa Can Help You Save Money And Reduce Tax Debts
It is springtime, and with tax season approaching, Hillsborough County residents are searching for ways to protect their assets and save money. While most people associate estate planning in Tampa with preparing for the future and unexpected events, it can also be a powerful tool for protecting your rights as tax deadlines draw near.
Our Tampa estate planning lawyer has decades of experience helping clients in our community, protecting the best interests of both them and their family members. We explain how estate planning can help save money and reduce tax debts, as well as the documents you should have in place before filing your 2024 tax return.
How Estate Planning Can Save You Money And Reduce Tax Debts
The yearly tax season is something most of us dread, and for good reason. Internal Revenue Service (IRS) shows an average federal tax debt of roughly $16,849 per taxpayer. This number grows exponentially for those in higher tax brackets or with significant assets.
Unfortunately, without proper planning, families often lose tens of thousands of dollars to unnecessary taxes, fees, and penalties each year. Ways in which estate planning in Tampa helps mitigate these losses and can save you money during tax season include:
- Lowers taxable income and your tax bracket;
- Maximizes tax deductions and reduces your overall tax burden;
- Protects business assets, offering tax advantages for transferring ownership or assets;
- Minimizes state and federal estate taxes, which can significantly reduce the value of your estate.
Tampa Estate Planning Documents To Create Before Filing Your 2024 Tax Return
Estate planning guidelines are listed under the Florida Statutes and protect your right to decide how your assets are handled. Consulting an experienced estate planning lawyer in Tampa ensures you are in compliance with state and federal laws, avoiding unnecessary legal complications that can cost you time and money.
To save you and your family time and money in the new year, consider creating a will, healthcare directives, and power of attorney. In terms of both financial savings and potential tax benefits, consider your options in creating a trust. These include:
- A revocable living trust, which helps avoid probate and ensures a smooth transfer of assets, minimizing estate taxes and administrative fees;
- An irrevocable trust, which removes assets from your taxable estate, thereby reducing federal estate taxes;
- A gift trust, which allows you to transfer assets to beneficiaries while utilizing the annual gift tax exclusion, which in 2024 is $18,000 per recipient;
- A charitable trust, allowing you to support your favorite causes while gaining an additional deduction and lowering income taxes, capital gains taxes, and estate taxes.
Schedule A Consultation Today With Our Tampa Estate Planning Lawyer
Estate planning is more than preparing for the future. As tax season approaches, Bubley & Bubley, P.A. provides trusted legal guidance in creating a customized estate plan that safeguards hard-earned assets while reducing tax liabilities. Take the first step toward financial security this tax season. Call or contact our office and schedule a consultation with our Tampa estate planning lawyer today.
Sources:
irs.gov/statistics/soi-tax-stats-irs-data-book
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Index&Title_Request=XLII
irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
