Greeley Estate Tax Lawyer

We Provide Comprehensive Tax Law and Estate Planning Services for Weld County Residents

Greeley estate tax lawyer services from Colorado Estate Planning Law Center help individuals, families, and business owners minimize estate and gift taxes while protecting their assets through comprehensive estate planning strategies.

Tax planning is an important part of the estate planning process. Under our legal system in the United States, many aspects of tax planning and estate planning go hand-in-hand. By considering tax planning during the estate planning process, Colorado residents can maximize the wealth they are able to pass on to their beneficiaries, and they can mitigate their tax liability during their lifetimes as well.

Why Work with a Greeley Estate Tax Lawyer?

We help families in Greeley, CO and the surrounding areas address all types of tax considerations during the estate planning process. From minimizing business taxes to avoiding unnecessary taxes when saving for college, we help our clients make informed decisions about all pertinent issues—with the goal of helping our clients achieve the best outcome in light of their specific circumstances.

An experienced Greeley estate tax lawyer can identify opportunities to reduce estate taxes, gift taxes, and other unnecessary tax liabilities while protecting your family’s long-term financial future.

Here are just some of the ways an estate tax planning and trust litigation attorney at our law firm can help:

· Providing advice about the tax mitigation strategies that you can use to your advantage (and your family’s advantage) during your life and after your death

· Providing guidance on how and when to implement specific tax strategies (including in the event of a divorce) in order to maximize the value of your estate and ensure the minimum tax burden for your family

· If you own a business, helping you implement a tax mitigation strategy related specifically to your company ownership

· Helping families navigate the probate and trust administration processes, including helping to resolve any disputes or other challenges that may arise (using mediation when warranted)

· Providing peace of mind that you are making informed decisions in compliance with all pertinent tax laws and allowing you to move forward with confidence

When it comes to tax planning, mistakes can prove costly. We have extensive experience helping our clients meet their state and federal tax responsibilities with respect to income, property, and estate taxes. While we design our clients’ estate plans so that they can be implemented without an attorney’s involvement in many cases, we are also available to help manage our clients’ estates during their lifetime and after their passing. We assist our clients with making informed decisions about guardianship and other essential aspects of estate planning as well.

While tax planning often sounds complex, we simplify the process as much as possible. We know you want to protect yourself and your loved ones, and this is where we focus our efforts. We will explain what you need to know in order to make sound decisions about the future, from avoiding unnecessary personal income tax during your lifetime to helping your family avoid unnecessary taxes during the probate process.

Using 529 Plans to Cover the Costs of University Attendance in Colorado

Many clients who come to us are interested in setting up a savings account or a college fund for their children but don’t realize that there can be costly tax implications. If you’re fortunate enough to have money to put aside for these reasons, we want to ensure that you’re handling your potential liabilities in the smartest way possible so your children can receive the sum you wanted to give them, and your taxes are kept to a bare minimum.

If you have questions about setting up a 529 plan, let the Greeley gift and estate tax lawyers at Colorado Estate Planning Law Center assist you and help you avoid any unnecessary taxes. Call our office at (720) 776-2308 or contact us online to set up a free initial interview.

What Is a 529 Plan?

A 529 plan is a type of investment account that provides tax benefits when you use it to pay for qualified expenses, such as college tuition or expenses, apprenticeship programs, and student loan payments. It is a great planning tool to help reduce gift tax liabilities while providing financial security for the future.

529 and Gift Taxes

If you set up a 529 plan for your child, it is viewed as a gift, and federal gift tax laws apply. You and your spouse can put up to $30,000 into the 529 annually without having to worry about gift taxes or filing a gift tax return. This counts against your lifetime gift tax limit as well.

Benefits of a 529 Plan

When you invest money into a 529 account, your investment will grow on a tax-deferred basis. Additionally, you are permitted to withdraw funds from the account tax-free if the money is used to pay for a qualifying expense, for example, a computer for college, and any of the items listed above. One of the most common purposes is to pay for a child’s education. A 529 account is similar to a 401(k). Any money earned from the 529 investment is not treated as taxable income. Furthermore, in Colorado, any contribution you make to your 529 can be deducted from your state income tax return.

Another benefit of a 529 account is the amount of control you have over the money invested. You get to control who can use the money and what it’s used for, and you can change this designation at any time you wish. Other types of accounts used to save for a child’s college expenses automatically turn the money over to them when they reach a certain age. With a 529, you can have the funds sent to you directly, and you can pay the education expenses yourself. Alternatively, you can have the funds distributed directly to your child or even directly to the educational institution.

Does a 529 Plan Affect Financial Aid?

In some circumstances, investing in a 529 account for your child could negatively affect their ability to receive financial aid. When applying for financial assistance, a parent’s assets and income are taken into account, so a 529 will be considered. However, there is usually a greater emphasis placed on a parent’s income rather than their assets when determining financial need, so a 529 might not affect your child that negatively. The implications on financial aid are usually not severe enough that it should deter you from setting up this type of account to help fund your child’s education.

What if a Grandparent Sets Up the 529?

Some people try to bypass the effect a 529 will have on a student’s financial aid eligibility by having a grandparent set up the 529. When a student applies for financial aid, the grandparent’s income and assets are not considered, so the 529 will have no bearing on their financial aid award. However, it’s crucial to note that when the grandparent takes out the money to spend on their grandchild’s education, the money will be considered as income for the student. When the student applies for financial aid the following year, it will appear that they make far more money than they actually do and they may be awarded less financial support than they really need.

Speak with an Experienced Greeley Estate Tax Lawyer

If you need guidance from a Greeley estate tax lawyer, Colorado Estate Planning Law Center can help you develop a tax-efficient estate plan that protects your assets, minimizes tax liability, and supports your family’s long-term goals. Whether you are planning for future generations or funding a child’s education, we are here to help. Call our office at (720) 776-2308 or contact us online through our website to schedule a free initial interview.