Knowing exactly what kinds of estate planning issues or events to plan for in the future is difficult without the help of a knowledgeable probate and estate planning lawyer to guide you.

As part of our process, we walk our clients through the estate planning process, from analyzing a family’s financial circumstances and goals, to educating our clients about the range of estate planning options, and to drafting and implementing the estate plan. We draft estate plans for a wide range of clients, from young families with children, retirees and seniors, and to business owners.

The Sullivan Law Office provides a full range of essential services in this area and can start helping you today to ensure that your future wishes are carried out.

Related services that we provide include:

• •Estate Planning
• •Estate Administration
• •Probate
• •Wills - Simple and complex
• •Trusts - Revocable and Irrevocable
• •Charitable Trusts
• •Business Succession Planning
• •Special Needs Trusts
• •Supplemental Needs Trusts
• •Durable Power of Attorney
• •Health Care Directives.

Using Trusts to Reduce or Eliminate Federal Estate Tax

Through December 31st, 2009, the value of an estate which can pass federal estate-tax free is $3,500,000. Any individual with an estate valued at less than $3,500,000 can pass that estate on to their heirs free of federal estate tax. Unfortunately, if a married couple has assets valued in excess of $3,500,000, their estate could potentially be subject to estate tax if they do not engage in proper estate planning. With proper estate planning, (the use of a trust), a couple with assets valued up to $7,000,000 can completely avoid federal estate tax. This is accomplished because the use of a trust allows both spouses to take advantage of the $3,500,000 exclusion amount, thereby doubling to $7,000,000 the amount that can be passed on to heirs free of estate tax.

Minnesota has an estate tax as well. The value of an estate that can pass Minnesota estate-tax free is $1,000,000.

Beginning on January 1, 2010, the federal estate tax is completely repealed. That is, no federal estate tax is assessed on any portion of value of an estate. However, this can change given that Congress has pledged to take up the estate tax issue as one of their first points of business upon their return in 2010. A significant component of the next estate tax bill that is being discussed is making the bill apply retroactively to first of January, 2010. For 2011, under current law, the value of an estate that can pass estate-tax free will reset to $1,000,000.

Gift Tax

For 2009, a taxpayer may make total gifts (excluding annual exclusion gifts) of $1,000,000 over the course of his or her lifetime, without incurring any federal gift tax. In addition to the lifetime exclusion amount, federal law allows annual exclusion gifts of $13,000 per donee. Minnesota does not have a gift tax.

Proper Planning

With proper planning, there are ways to avoid both the state and federal estate tax bite. By gifting to qualified charitable organizations, shifting assets between spouses, and establishing a well constructed trust, it may be possible to leave larger legacies to your beneficiaries rather than the tax man.

Learn More - Will and Trust FAQ's

Learn More - Probate FAQ's