Passing your estate to your beneficiaries without proper estate planning could mean they get much less than you hope if not done correctly. Estate taxes could eat up to 40 percent of it, but tools are available to pass your assets on and minimize taxes.
Gifting
Giving gifts to your beneficiaries is one of the simplest ways to minimize estate taxes. Your gifts in 2023 need to be limited to $17,000 per year per person. Couples can give up to $34,000 to an individual. You can give gifts to as many people as you want, and as long as they are under this limit, there is no gift tax.Gifts can also be given to cover medical expenses or education costs. The money must be contributed directly to the institution to reduce your income.
