7 Effective Strategies to Increase the Money You Leave to Your Heirs

Even if you’re not wealthy, an estate plan can ensure that your assets pass on to those whom you want to receive them.

Estate taxes are imposed on the heir of an estate and include any real estate, stock, cash, or other assets transferred to heirs at the time of death. There are both federal estate taxes and, in some states, state estate taxes.

Wouldn’t you rather see these items stay in your family instead of being eaten by Uncle Sam?

Laws can vary from state to state, so be sure to find the details that apply to your situation.

Use these tips to increase how much you leave to your heirs/reduce your estate tax burden:

1. Give the money to your children while you’re still alive. You can give a certain amount every year to any of your children or grandchildren. If you’re married, you and your spouse can each give double that amount per child each year. This can add up. Check the IRS website to see the amount. It could be a big amount, depending upon the circumstances.
2. Be charitable. Charitable gifts and lifetime transfers are a way to reduce your estate taxes and get your money to the organizations that mean the most to you.

• There are several ways to gift money and assets to charitable groups. Not surprisingly, charities are well versed in gift giving and taxes. Their help is also free!