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Estate & Gift Taxes
Helping Families Plan for the Future
The death of a loved one can be a very emotional and stressful time for families. Planning for the future of your family and your assets can be a difficult task. At Sandahl & Damhof, our estate and gift tax attorneys can help you plan for the future and make sure your family is taken care of.
Call us at 612-448-3898 or contact us online to schedule an initial consultation with our Bloomington estate & gift tax lawyer.
What Is Estate Tax?
Estate tax is the tax that is levied on the value of a person’s estate when they die. The value of the estate is calculated by adding up the market value of all assets owned by the deceased, including real estate, investments, and personal property. Estate tax is calculated using a progressive tax rate, which means that the more valuable the estate is, the higher the tax rate will be.
What Is Gift Tax?
Gift tax is the tax that is levied on the value of gifts that are given by someone during their lifetime. The value of the gift is calculated by adding up the market value of all gifts given by the donor, including gifts of cash, real estate, investments, and personal property. Gift tax is calculated using a progressive tax rate, which means that the more valuable the gifts are, the higher the tax rate will be.
If a gift is valued at more than $14,000, then the gift will be subject to the 40% federal gift tax rate. In Minnesota, the gift tax is calculated based on the value of the gift, which is then multiplied by the Minnesota gift tax rate, which is currently 10%. If the gift is valued at less than $14,000, then the gift will be subject to the Minnesota gift tax rate of 10%, but if the gift is valued at more than $14,000, then the gift will be subject to the Minnesota gift tax rate of 16%.
Exceptions to Gift Tax for Specific Types of Gifts
Gift tax can be a concern when transferring assets, but there are exceptions to help individuals manage their tax liability. These exceptions include:
Annual Exclusion: You can gift up to a certain amount annually to as many individuals as you want without incurring gift tax.
Educational and Medical Expenses: Gifts for tuition or medical expenses paid directly to institutions or providers are exempt from gift tax.
Charitable Contributions: Gifts to qualified charities are generally tax-free and may also be tax-deductible for the donor.
Gifts Below Annual Exclusion: Gifts below the annual exclusion limit do not trigger gift tax.
These exceptions are subject to change, so consult with an estate and gift taxes attorney to help you along the way.
Why You Need Estate & Gift Tax Advice
Planning for the future of your family can be a difficult task. There are many things to consider, such as how to manage the assets you have worked so hard to build during your lifetime. Our estate and gift tax attorneys can help you plan for the future and make sure your family is taken care of.
Some of the things you may need to consider when planning for the future of your family include:
- How will you provide for your spouse and children after you are gone?
- What will happen to your assets if you become incapacitated?
- How can you protect your assets from creditors?
- How will you provide for your grandchildren’s education?
- What are the best ways to pass on your assets to your loved ones?
Estate and gift tax planning is an important part of any estate plan, and it’s important to get the right advice to help you plan for the future of your family. Our estate and gift tax attorneys can help you plan for the future and make sure your family is taken care of.
Call us at 612-448-3898 or contact us online to schedule an initial consultation with our Bloomington estate & gift tax lawyers.
Why Our Clients Choose Us
Our mission is to become an essential, trusted partner in our clients’ lives. We achieve this by leveraging our experience, expertise, and tireless work ethic.
- Collaborative Approach We aim to be your trusted partner. We work together with our clients to find the best solution for them and their families.
- Individualized Guidance Our attorneys get to know you and your family to understand what options are right for you.
- Lasting Relationships Estate planning needs change throughout every stage of your life and our team will be with you every step of the way.
Hear what it’s like working with our firm from our clients themselves!