Are there techniques available to reduce or avoid estate taxes?
There are many techniques designed to eliminate or reduce estate taxes. One technique is to take a life insurance policy on your life and transfer it to an irrevocable life insurance trust. By doing that the policy proceeds will be excluded from your estate for estate tax purposes. Those proceeds can be used to pay for estate taxes and provide liquidity to the estate. You also have certain exemptions that you can utilize and leverage in order to deplete your estate for estate tax purposes. There’s a $14,000 annual gift exclusion per person per beneficiary and there’s a $5.45 million lifetime exemption from gifts. By taking advantage of those you can possibly reduce or completely eliminate estate taxes