Minneapolis Real Estate Lawyer | St. Paul Real Estate Attorney
Real estate owners are in a unique position when it comes to estate planning. There are different strategies that can be used to remove tax burdens as they transfer assets. The goal of having a good estate plan is to reduce or defer the overall tax burden. However, there are certain things that must be taken into consideration when developing a good estate plan, such as the taxpayer’s need to retain control over their assets (particularly real estate) and their need for liquidity. Having a knowledgeable Minneapolis real estate lawyer who specializes in estate planning will be a valuable tool for you to use.
At the Gross Law Office, Al Gross specializes in real estate as it pertains to estate planning. He recognizes that real estate is a major part of the transfer of wealth.
Strategies For Minimizing Tax
There are two strategies that Mr. Gross can use to minimize the tax burden of transferring real estate. The first strategy is utilizing valuation discounts on the transfer of interests. The second strategy is freezing asset value for real estate tax purposes.
If there is a lack of marketability, the discounts can be given. Lack of marketability has to do with the lack of liquidity if the real estate would be transferred. Lack of liquidity can exist when there is a timing restriction or when the value isn’t going to be fair market value. Real estate assets can be moved into a partnership entity and then the interests transferred in the partnership, which is lack of control due to holding a minority interest in the property.
For the value of property to be frozen for estate tax purposes, an individual must consider an intrafamily transfer. A sale can be made to a grantor trust or family member. If transferred at current fair market value, gift tax isn’t a concern. Gift tax becomes a concern when discounts reduce the value of the property or the property is simply transferred at a reduced value.
Help Establishing A Solid Plan
Mr. Gross will evaluate your current situation to devise a plan that works for you. There are so many real estate matters that can come about when estate planning and when administering an estate. For instance, a business needs to have a succession plan to make sure the business continues and real estate is retained.
What it comes down to is asset protection and at the Gross Law Office, you will work with a Minneapolis and St. Paul real estate attorney who specializes in these matters. One of the last things you want to happen is your heirs have to sell off properties in order to deal with estate taxes. By having everything in place before this scenario comes about, you can protect your loved ones from conflict and the complexities that can come about with real estate.
Contact A Minneapolis Real Estate Lawyer
If you are a real estate owner and you don’t have an estate plan or need to update your estate plan, it is time to do so. If you are administering an estate or dealing with any other real estate matters as they pertain to an estate, you can turn to Mr. Gross for help. To learn more, call today at 612-203-3830today.