The ESTATE TAX (also known as the “death tax”) is a federal or state tax that is placed on the transferable assets left to your heirs at the time of your death.  After the exempted amount is calculated (currently $2 million for an individual in 2008) the remaining taxable estate value can be subject to a tax that rises to almost 50% of your taxable estate!  This can cost a family millions of dollars and even force heirs to sell the very asset that created the wealth just to pay the taxes on it! 

CAPITAL GAINS taxes are incurred when an owner sells an appreciated asset for a profit.  This asset may be a highly appreciated piece of real estate, a growing business, or maybe just stock that has risen in value.  Capital gains taxes are both painful and obvious as they are incurred right up front and are paid in the same tax year as the sale. 

The current long term capital gains tax rate is historically low at 15%.  However, additional taxes may add to that rate and make the tax bite significantly higher.  Some additional taxes a seller may incur includes: state taxes, depreciation recapture taxes, the alternative minimum tax (AMT), or loss of tax deductions as a result of a sale.  These tax ramifications can be considerable and consume a large portion of the seller's gain.

Whether you are concerned with estate taxes, capital gains taxes, state taxes, depreciation recapture taxes, the alternative minimum tax (AMT), or loss of tax deductions there are many strategies that can be implemented to help eliminate, defer, reduce, or freeze a taxable situation.

These strategies may include: SCINs, PATs, Family/Private Foundations, FLPs, Family Partnerships, GSTs, Dynasty Trusts, Gifting Programs, GRATs, IDGTs, ILITs, Living Trusts, 529 Plans, Discounted TICs, Charitable Remainder Trusts (CRTs), CLATs, CLTs, CGAs, CRATs, CRUTs, FlipCRUTs, NICRUTs, NIMCRUTs, SCRUTs, Structured Sales, SPATs, TICs, DSTs, TICUPREITs, 1031 Exchanges, Flip Unitrusts, Donor Advised Funds, Self Directed Installment Sales (Controlled Installment Sales), Tax Credit or Tax Write-off Programs, and the use of Pension Plans.

At NATD, we specialize in all of the available strategies that can help achieve an efficient tax solution.  We have identified over 30 different strategies to help our clients lower their tax exposure.  Whatever your goal is, NATD can provide you with the strategies best suited for your family and your particular intent.

Call today for your free consultation and more information about how the National Associates for Tax Deferral can provide you with a solution customized for your particular situation.  All inquiries are held in the strictest of confidence.