While estate planning, you likely envision all of your assets going to loved ones as outlined in your will. Unfortunately, it’s common for these belongings to go through an extensive taxing process, minimizing the amount your family members get to take home. Luckily, there are some tips you can follow to avoid this issue.

3 Estate Planning Methods That Will Help Avoid Taxes

1. Give Your Assets as Gifts

If your assets don’t have a direct impact on your day-to-day lifestyle, consider giving them out over a period of time. Money given out as a gift isn’t subject to taxes as long as it doesn’t go over a certain amount. The limit is $15,000 for the remainder of 2019.

2. Consider Joint Ownership

When you’re the sole owner of an asset, it can only be divided based on the beneficiary outlines in your will. When the assets are distributed, they’ll be subject to taxes before your loved ones can claim them. However, if you opt for joint ownership of the asset, your loved ones won’t have to pay taxes on it because it’s legally theirs, too. You can list as many owners as you want on assets, but be aware that if you cite more than one owner, the property will be split evenly among them after your passing.

3. Put the Assets in a Trust

A trust serves as a fully viable loophole against probate, allowing your assets to pass directly to your beneficiaries without being taxed. If you opt for a revocable trust, you’ll have the option to take out any of your assets whenever you want. Conversely, if you wish to secure the assets in an untouchable account until you pass, opt for an irrevocable trust.

If you need help avoiding inheritance taxes, turn to the professionals at Wills and Trusts Hawaii. Based in Honolulu, these attorneys focus specifically on estate planning, allowing them to garner the best understanding of the proceedings and laws as possible. Visit them online to learn more about their firm, and call (808) 792-8777 to schedule a consultation.