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How We Saved a Client Nearly $1 Million in Estate Taxes Using Advanced Estate Planning Tools
High-net-worth individuals face unique challenges when it comes to estate planning, especially with the hefty estate taxes Massachusetts imposes. Without proper planning, a significant portion of your wealth can end up in the hands of the Commonwealth. But that doesn’t have to be the case. At Monteforte Law, PC, we specialize in protecting our clients’ wealth from excessive estate taxes using advanced trusts and strategic planning.
In this post, I’ll share how we saved one of our clients nearly $1 million in estate taxes—and how we’ve done the same for hundreds of others.
The Estate Tax Problem
Our client came to us with an estate valued at just over $14 million. Massachusetts estate taxes are notorious for being some of the highest in the country, and this client was looking at a tax bill of over $1 million if no action was taken. Like many high-net-worth individuals, he wanted to protect his assets, ensure his family’s financial future, and reduce his estate’s tax burden as much as possible.
Our Advanced Estate Planning Solutions
At Monteforte Law, PC, we take a customized approach to estate planning for wealthy clients. Here’s how we tackled this client’s estate tax issues using a combination of advanced trusts and our Foundational Four package.
- The Foundational Four: Every comprehensive estate plan at Monteforte Law starts with our Foundational Four, which provides the essential documents:
- Last Will and Testament: Ensures your assets are distributed according to your wishes, not dictated by state law.
- Durable Power of Attorney: Appoints someone to manage your financial affairs if you become incapacitated.
- Healthcare Proxy: Allows someone to make medical decisions on your behalf.
- 20/20 Hindsight Trust: A proprietary trust designed to provide both asset protection and flexibility, allowing you to adapt as your financial situation evolves.
2. Qualified Personal Residence Trust (QPRT):For high-net-worth clients, a QPRT is an excellent tool to protect the value of their home. With a QPRT, the residence is transferred to a trust, reducing the taxable value of the estate while allowing the individual to live in the home for a designated period. This strategy minimizes estate taxes while maintaining control of the residence.
3. Spousal Lifetime Access Trust (SLAT): A SLAT is a powerful tool that enables one spouse to transfer assets into a trust for the benefit of the other spouse, leveraging both spouses’ estate tax exemptions and reducing the taxable estate. SLATs are particularly effective for high-net-worth couples, offering asset protection and estate tax reduction while maintaining access to funds.
The Results: Over $950,000 in Tax Savings
Through the implementation of these advanced estate planning tools, we were able to reduce our client’s estate tax liability by over $950,000. That’s nearly $1 million going directly to his heirs, not into the hands of the Commonwealth of Massachusetts.
This isn’t just a one-time success story. At Monteforte Law, PC, we’ve helped hundreds of high-net-worth clients reduce their estate taxes, protect their assets, and preserve their family’s financial future. Our experience with sophisticated estate planning strategies ensures that your wealth stays in your family for generations to come.
Why Monteforte Law, PC is the Right Choice for High-Net-Worth Estate Planning
Massachusetts estate taxes can be a significant burden for wealthy families, and the state is relentless when it comes to collecting. At Monteforte Law, PC, we specialize in helping high-net-worth individuals navigate these complex tax laws and protect their wealth. Our expertise in estate planning, trusts, and asset protection ensures that your estate plan is not just a set of documents—it’s a well-crafted strategy to minimize taxes and maximize the value of your estate for your heirs.
Don’t Let Massachusetts Take What’s Yours
If you have substantial assets, now is the time to take action. Without a comprehensive estate plan, your estate could face massive taxes, leaving your heirs with far less than you intended.
Book a spot at one of our amazing seminars today and discover how we can help you keep your money where it belongs – with your family.
