Without proper planning, your family may face writing a large check for federal and/or state estate taxes. Following the passage of the Tax Cuts and Jobs Act of 2017, the federal estate tax exemption for an individual in 2021 increased to $11.7 million. The 2021 Rhode Island estate tax exemption for an individual is $1.595 million. The Rhode Island estate tax is independent of the federal estate tax and applies even if no federal estate tax is due.
Our office offers sophisticated solutions including revocable and irrevocable trusts to avoid or reduce both the federal and state estate tax burden. We take the time to understand our client’s complete asset portfolio and explain how the strategies we recommend can be applied to each client’s circumstances.
Tax planning documents can be vastly under-utilized if the title to assets are not actually aligned with them. To assure optimal tax planning outcomes we work closely with clients who elect tax planning to ensure that their trusts are funded and the beneficiary designation forms are properly completed.