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 are unified under the federal transfer tax system, and the IRS provides a combined lifetime exemption that shields a significant portion of wealth from taxation. The current elevated exemption is scheduled to decrease after 2025 unless Congress acts making proactive planning particularly timely.
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, built over time, can meaningfully reduce the size of a taxable estate.
Strategies to Reduce Transfer Tax Exposure
Our attorneys help clients evaluate a range of planning strategies, which may include:
Annual gifting programs to transfer wealth incrementally
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 Planning Now Matters
Estate and gift tax laws are not static. With the current elevated federal exemption set to expire, clients with larger estates have a narrowing window to take advantage of favorable rules. Our attorneys monitor legislative developments and advise clients on opportunities as they arise.