Knowledgeable Huntersville Lawyer Provides Estate, Gift and Income Tax Planning Guidance
Experienced North Carolina attorney answers taxation questions
Lake Norman Wealth Counsel in Huntersville, North Carolina offers sound, up-to-date advice on all topics related to estate taxes, inheritance taxes and gift taxes. We also provide thorough advice related to minimization of income taxes through life insurance trusts, family limited partnerships and other vehicles. Our firm can help you understand the complexities of tax laws and work with you to create a plan that puts you and your family on solid financial footing.
Law firm provides information about estate and inheritance tax
The good news is:
- North Carolina is among the 38 states that do not have estate taxes.
- North Carolina does not have an inheritance tax, either.
But it’s still important to know the difference, and here is why. Estate taxes are levied on the estate of a deceased person before any assets pass to heirs, while inheritance taxes are paid by heirs who receive assets from an estate. Although our state does not have either of these taxes, if you reside in North Carolina but inherit property located in a state that does have inheritance tax, you may have to pay that state’s tax.
And while North Carolina doesn’t levy estate taxes, federal estate taxes apply. Federal estate taxes only affect very large estates (those worth more than $11.4 million in 2019), but the government can lower that threshold any time, in which case you could face estate tax liability. If your estate is near or above the threshold, we can discuss proper planning.
Understanding how gift taxes apply to you
North Carolina does not have a gift tax, but there is a federal gift tax. For 2019, federal law allows you to give up to $15,000 worth of gifts to a person tax-free. You can give $15,000 to person A, another $15,000 to person B and another $15,000 to person C. Even though the total is $45,000, the gifts are treated separately, so you don’t have to pay gift taxes. You can also take advantage of the unified gift and estate tax exemption, which allows you to pass up to $11.18 million tax-free during your lifetime.
Complicated tax rules affect those who plan to give away millions of dollars during their lifetimes. We recommend speaking with us if you fall into this category.
How trusts affect taxes
Taxation of trusts is highly complex and has gained more attention recently as North Carolina’s revenue collection agency fights to defend the current tax regime, which allows the state to tax trust beneficiaries who live here even if the trust was created in another state. At Lake Norman Wealth Counsel, we provide general tax advice related to many different types of trusts, including:
- Revocable and irrevocable trusts
- Charitable trusts
- Grantor trusts
We’ll guide you through current laws and adjust as laws change.
Get a free consultation to talk about creating a will in North Carolina
Lake Norman Wealth Counsel in Huntersville, North Carolina can help you create a will or change an existing one. For a free consultation, call 704-727-2026 or contact us online.