What to Expect from Figeroux & Associates in Estate and Wealth Planning

Introduction
Estate and wealth planning is a multifaceted area of law focused on preserving, managing, and distributing wealth in a way that aligns with clients’ financial goals and family needs. Effective estate planning can reduce tax burdens, ensure legal compliance, and protect family assets for future generations. Figeroux & Associates is a full-service law firm with expertise in estate and wealth planning, offering comprehensive services that range from minimizing tax liabilities to drafting wills and establishing trusts. With a client-centered approach, Figeroux & Associates helps individuals, families, and business owners navigate the complexities of estate planning, ensuring that their wealth is protected and their legacy is preserved.

This article explores what clients can expect from Figeroux & Associates in estate and wealth planning, focusing on the firm’s approach to tax minimization, compliance with state-specific tax issues, and the drafting of foundational estate planning documents.

1. Minimizing Tax Liabilities Such as Estate Taxes, Gift Taxes, and Inheritance Taxes

A core objective of estate and wealth planning is to minimize tax liabilities, including estate taxes, gift taxes, and inheritance taxes. Through strategic planning, Figeroux & Associates helps clients reduce these burdens, allowing them to transfer more wealth to their beneficiaries while complying with federal and state tax regulations.

Estate Tax Planning

The federal estate tax applies to the transfer of a deceased person’s assets to their heirs, and it can significantly reduce the value of the estate passed on to beneficiaries. Proper estate tax planning involves strategies that limit the value of taxable assets or defer tax payments, allowing clients to maximize the wealth passed on to heirs.

What Clients Can Expect:

• Thorough Asset and Estate Evaluation: Figeroux & Associates begins with a detailed review of the client’s assets, including real estate, investments, business interests, and personal property. This assessment provides a clear understanding of the estate’s value and potential tax liabilities.
• Utilizing the Lifetime Gift Tax Exemption: The federal government allows individuals to make tax-free gifts up to a certain threshold during their lifetime. Figeroux & Associates advises clients on maximizing this exemption to reduce the size of their taxable estate, thereby minimizing estate tax liabilities upon death.
• Establishing Credit Shelter Trusts and Marital Trusts: For married clients, credit shelter trusts and marital trusts can help reduce or eliminate federal estate taxes by taking advantage of the unlimited marital deduction. The firm structures these trusts to allow tax-efficient transfers between spouses and to beneficiaries upon the death of the surviving spouse.
• Generation-Skipping Transfer (GST) Tax Planning: The GST tax applies to transfers made to grandchildren or other beneficiaries who are two or more generations younger than the donor. Figeroux & Associates advises clients on effective GST tax planning, including the use of trusts, to minimize this additional layer of tax.
• Life Insurance as an Estate Tax Mitigation Tool: Life insurance can provide liquidity to cover estate taxes without requiring the sale of assets. The firm assists clients in setting up irrevocable life insurance trusts (ILITs) to remove life insurance proceeds from the taxable estate, ensuring that beneficiaries receive the full amount without additional tax burdens.

Gift Tax Planning

The federal gift tax applies to transfers of assets made during a person’s lifetime, and gift tax planning can be a powerful tool for reducing future estate tax liabilities. By transferring assets to beneficiaries during their lifetime, clients can limit the value of their estate and reduce the taxes owed upon death.

What Clients Can Expect:

• Annual Gift Exclusion Strategy: The IRS allows individuals to gift a certain amount tax-free each year per recipient. Figeroux & Associates advises clients on using this annual exclusion to transfer assets to family members tax-free, gradually reducing the size of the taxable estate over time.
• Lifetime Gift Exemption Maximization: The firm also helps clients utilize their lifetime gift exemption, which can offset gift taxes owed on larger transfers. This strategy allows clients to make substantial gifts to heirs without incurring immediate tax liabilities.
• Structuring Tax-Efficient Gifts: The firm assists clients in structuring gifts to take advantage of discounts on certain assets, such as minority interests in family businesses. By gifting these interests, clients can transfer value to heirs while reducing the reported value of the assets for tax purposes.

Inheritance Tax Minimization

While the federal government does not impose an inheritance tax, certain states do, applying taxes on the recipient rather than the estate. Figeroux & Associates provides strategies for minimizing the impact of inheritance taxes in states where they apply.

What Clients Can Expect:

• Identifying and Planning Around State Inheritance Taxes: The firm identifies state inheritance tax obligations based on the client’s residence and beneficiaries’ locations, advising on strategies to reduce or eliminate these taxes.
• Establishing Out-of-State Trusts: For clients in states with inheritance taxes, Figeroux & Associates may recommend establishing trusts in jurisdictions with more favorable tax treatment, allowing clients to mitigate or avoid inheritance taxes on certain assets.
• Strategic Use of Beneficiary Designations: The firm assists clients in carefully structuring beneficiary designations on retirement accounts, life insurance policies, and other assets to reduce the impact of inheritance taxes on their heirs.

Long-Term Tax Planning for Families

Figeroux & Associates takes a proactive approach to tax planning, developing long-term strategies that evolve as family circumstances, tax laws, and financial goals change. This ensures that clients remain tax-efficient over time, preserving wealth for future generations.

2. Ensuring Compliance with Complex Tax Issues Based on State

Estate planning and wealth management require careful compliance with federal and state-specific tax laws. Each state has unique tax regulations, which can affect estate taxes, inheritance taxes, and income taxes on trusts. Figeroux & Associates provides comprehensive guidance on state-specific compliance, helping clients navigate these complexities and avoid potential legal issues.

State Estate Tax Compliance

In addition to federal estate taxes, some states impose their own estate taxes with varying exemption amounts, rates, and requirements. For clients in states with estate taxes, compliance with these laws is crucial to avoid penalties and reduce tax liabilities.

What Clients Can Expect:

• State-Specific Estate Tax Evaluation: Figeroux & Associates reviews the client’s state tax laws to determine the specific estate tax obligations. The firm provides guidance on how to structure assets to take full advantage of state exemptions and credits.
• Credit Shelter and Bypass Trusts for State Taxes: The firm may recommend credit shelter or bypass trusts specifically for state estate tax purposes, allowing clients to make the most of state exemptions and reduce the overall tax burden on the estate.
• State Residency and Domicile Planning: State estate taxes are generally based on the decedent’s residency. For clients with multiple residences or considering relocation, Figeroux & Associates provides guidance on domicile planning to potentially avoid or reduce state estate taxes.

State Gift and Inheritance Tax Compliance

Some states impose their own gift and inheritance taxes, and compliance with these taxes requires a nuanced understanding of each state’s specific rules. Figeroux & Associates helps clients stay compliant with state tax obligations, ensuring that gifts and inheritances are structured tax-efficiently.

What Clients Can Expect:

• State Gift Tax Planning and Filing: The firm advises clients on gift tax filing requirements in states that impose a gift tax. This includes strategies for avoiding gift tax liability and ensuring that all state-specific exemptions and exclusions are fully utilized.
• Inheritance Tax Compliance for Heirs: For clients in states with inheritance taxes, the firm provides guidance on compliance, advising beneficiaries on how to report and pay inheritance taxes and exploring options for minimizing their impact.

Trust Income Tax Compliance

Trusts are subject to their own set of tax rules, and compliance with state-specific trust income tax regulations is essential to avoid penalties. Figeroux & Associates assists clients in managing trust income tax obligations, helping trustees and beneficiaries understand and fulfill their filing responsibilities.

What Clients Can Expect:

• State-Specific Trust Tax Filings: The firm assists trustees with filing state income tax returns for trusts, ensuring that all income, deductions, and credits are properly reported based on the trust’s residence and beneficiaries’ locations.
• Managing Income Tax on Trust Distributions: Figeroux & Associates provides guidance on the tax implications of trust distributions, advising trustees on strategies to manage income tax efficiently and minimize the tax impact on beneficiaries.

Ongoing Compliance Monitoring and Support:

Figeroux & Associates provides ongoing support to ensure compliance with evolving state tax laws. This includes regular reviews of estate plans, updates to trust structures, and guidance on changes in state tax regulations that may affect the client’s estate.

3. Drafting Wills, Establishing Trusts, and Structuring Charitable Foundations

Wills, trusts, and charitable foundations are fundamental estate planning tools that enable clients to control the distribution of their assets, support loved ones, and fulfill philanthropic goals. Figeroux & Associates offers comprehensive estate planning services, drafting documents that reflect clients’ wishes and provide for family members while minimizing tax obligations.

Drafting Wills

A will is a legal document that specifies how an individual’s assets should be distributed after their death. Figeroux & Associates provides meticulous will-drafting services, ensuring that the document is clear, legally enforceable, and aligned with the client’s estate planning objectives.

What Clients Can Expect:

• Detailed Estate Planning Consultation: The firm conducts an in-depth consultation to understand the client’s assets, family dynamics, and distribution preferences. This helps ensure that the will accurately reflects the client’s wishes and accounts for potential issues.
• Customized Will Drafting: Figeroux & Associates drafts wills tailored to each client’s unique situation, specifying distributions to heirs, appointing executors, and including guardianship provisions for minor children if applicable.
• Incorporation of Trusts Within Wills: For clients with complex estates, the firm may incorporate trusts into the will, such as testamentary trusts, which become effective upon the client’s death. This can help manage and protect assets for beneficiaries.
• Periodic Will Updates: Estate planning is a dynamic process, and Figeroux & Associates advises clients on updating their wills in response to life changes, such as marriage, divorce, birth of children, or significant asset acquisitions.

Establishing Trusts

Trusts are essential tools for protecting assets, minimizing taxes, and providing for future generations. Figeroux & Associates offers a range of trust services, helping clients establish and manage trusts that align with their financial and family objectives.

What Clients Can Expect:

• Revocable Living Trusts for Probate Avoidance: A revocable living trust allows clients to transfer assets to heirs without going through probate. The firm assists clients in setting up living trusts that provide flexibility, enabling changes or revocations during the client’s lifetime.
• Irrevocable Trusts for Asset Protection: Irrevocable trusts remove assets from the client’s estate, providing asset protection and potential tax benefits. Figeroux & Associates advises on creating irrevocable trusts for tax reduction, asset protection, or Medicaid planning.
• Special Needs Trusts and Spendthrift Trusts: For clients with beneficiaries who have specific needs or lack financial management skills, the firm offers guidance on special needs trusts and spendthrift trusts, ensuring that funds are managed appropriately for these beneficiaries.
• Dynasty Trusts for Multi-Generational Wealth Transfer: Dynasty trusts allow clients to pass wealth across generations while minimizing estate taxes. Figeroux & Associates helps clients structure these trusts to provide long-term financial support for descendants.

Structuring Charitable Foundations

For clients with philanthropic goals, charitable foundations allow for meaningful contributions to causes while providing potential tax benefits. Figeroux & Associates assists in establishing and structuring charitable foundations that align with the client’s values and financial goals.

What Clients Can Expect:

• Foundation Structure and Setup: The firm assists clients in selecting the appropriate structure for their charitable foundation, such as a private foundation or donor-advised fund. This choice impacts administrative requirements and tax treatment.
• Drafting Bylaws and Mission Statements: Figeroux & Associates drafts bylaws, mission statements, and policies that reflect the client’s charitable intentions, ensuring that the foundation’s operations align with its objectives.
• Tax-Exempt Status and Compliance: The firm assists with applying for tax-exempt status, helping clients meet IRS requirements for charitable organizations. Figeroux & Associates provides ongoing support to ensure compliance with federal and state regulations.
• Incorporating Charitable Remainder Trusts and Charitable Lead Trusts: For clients who want to support charities while providing for family members, the firm advises on setting up charitable remainder trusts (CRTs) and charitable lead trusts (CLTs), which offer income and estate tax benefits while fulfilling philanthropic goals.

Long-Term Planning and Review:

Figeroux & Associates provides ongoing support to adapt clients’ estate plans to changing family dynamics, financial circumstances, and legal environments. Regular reviews ensure that wills, trusts, and foundations remain aligned with clients’ objectives.

Conclusion

Figeroux & Associates offers a comprehensive range of estate and wealth planning services, helping clients minimize tax liabilities, ensure compliance with state-specific tax regulations, and create foundational estate planning documents. With expertise in estate, gift, and inheritance tax planning, the firm helps clients maximize wealth transfer to beneficiaries while fulfilling philanthropic goals.

Clients can expect thorough guidance, proactive planning, and customized solutions, whether they are looking to establish trusts, draft a will, or create a charitable foundation. Figeroux & Associates serves as a trusted partner, supporting clients through every stage of the estate planning process to ensure that their wealth is protected and their legacy is preserved for generations to come.