Estate Tax Planning in Colorado
Navigate the complexities of estate tax planning in Colorado with this authoritative guide by Duncan Legal, PC. Call us today for more information.
Is There an Estate Tax in Colorado?
Currently, there is no state estate tax in Colorado. However, the federal government requires the payment of estate taxes over the estates whose value exceeds the filing threshold specified by the Internal Revenue Service (IRS).
For example, the filing threshold for the estates of people who died in 2023 is $12,920,000. If the value of their estate is beyond this amount, then they(their estate) would need to pay estate tax.
Because of the high filing threshold, most people would not need to pay the tax since their assets may not be up to the specified value. But for those who qualify, payment of estate tax can greatly diminish the estate’s value due to the high federal estate tax rates( between 18% to 40% of the estate).
If you own a high-value estate, now is the time to begin the estate tax planning process and ensure that the bulk of your estate is secured for the sake of your beneficiaries.
There are a few federal estate tax exemptions that could help you achieve this goal, such as the marital exclusion, which exempts property inherited by a surviving spouse from estate taxes. An estate planning lawyer can help you understand how each federal estate tax exemption works and how to use them to minimize or avoid payment of estate taxes entirely.
Contact Duncan Legal, PC, for Help With Your Estate Tax Planning
The estate tax planning process could be complex Because there are several factors and options to consider. For the best results, it is important to seek professional help from an attorney who can provide top-notch estate planning services and guidance throughout the process.
You can get the guidance you seek at Duncan Legal, P.C. If you let me, I can simplify the estate tax planning process for you and help you decide on the appropriate estate tax planning strategy based on your goals.
So, if you have further questions about estate and gift taxes or want to begin the estate tax planning process, schedule a consultation immediately to get started.