Gift and Estate Tax
Federal and California estate and gift tax rules can significantly impact how much of your wealth transfers to your heirs. NewPoint Law Group's estate planning attorneys help Roseville-area clients develop tax-efficient strategies — including gifting programs and trust structures — to preserve more of their estate for the people and causes they care about.
Gift and Estate Tax Planning | Estate Planning Attorneys in Roseville, CA
Understanding Federal Estate and Gift Tax
The federal estate tax applies to the transfer of wealth at death, while the federal gift tax applies to certain transfers made during your lifetime. Both taxes are unified under the federal transfer tax system, and the IRS provides a combined lifetime exemption that shields a significant amount of wealth from taxation. As of recent federal law, the exemption is substantial, though it is scheduled to decrease after 2025 unless Congress acts — making proactive planning especially important now.
California does not impose a separate state estate tax or inheritance tax, which provides some planning advantages for California residents.
The Annual Gift Tax Exclusion
Each year, individuals may gift up to the IRS annual exclusion amount per recipient without those gifts counting against the lifetime exemption. Married couples can combine their exclusions through gift-splitting. A consistent annual gifting program, implemented over time, can meaningfully reduce the size of a taxable estate.
Strategies to Reduce Estate and Gift Tax Exposure
At NewPoint Law Group, LLP, our estate planning attorneys help clients evaluate and implement a range of strategies to minimize transfer tax exposure, which may include:
• Annual gifting programs to transfer wealth incrementally during your lifetime
• Irrevocable life insurance trusts (ILITs) to keep life insurance proceeds outside the taxable estate
• Charitable remainder trusts and charitable lead trusts for philanthropically inclined clients
• Qualified personal residence trusts (QPRTs) to transfer real property at a reduced gift tax value
• Spousal lifetime access trusts (SLATs) and other advanced trust structures
Why Proactive Tax Planning Matters
Estate and gift tax laws change. The current elevated federal exemption is not permanent. Clients with larger estates should review their plans now to take advantage of favorable rules before potential changes take effect. Our attorneys monitor legislative developments and will advise you on timely opportunities.