Question

Imagine that you are a Certified Public Accountant (CPA) and your client has asked for your help in mitigating or eliminating the potential estate tax liability for the property the client owns, in order for the taxpayer to pass the property to heirs at the lowest possible tax rates. Analyze the options that may be open to your client and propose a strategy to mitigate or eliminate the client's potential tax liability.

Answer 1

Answer)

1)If the client is married,then it is better to him to file joint return to reduce the impact of not only property tax but also other taxes when you transfer to their heirs along with that they can claim an deduction upto $12000 if the person files single return and $24000 if they file married return.

2)Generation transfer is also another option available i.e transfer of asset directly to Grand children rather than children could deduct the problem of double taxing i.e transfer from parent to children and then to Grand children.