While most people only have wills, there are other legal documents that can safeguard their wealth and enhance their estate planning goals. By considering these options and consulting with the right experts, they can effectively reduce their estate taxes and leave a legacy for their families.
Living will
In Delaware, any adult who is at least 18 years old and of sound mind can create a living will. This document provides its owners with the opportunity to leave health care directives about their potential incapacity.
With a valid living will, people can take control of their own life-sustaining treatments and end-of-life care decisions, as well as provide their consent to organ and tissue donation should they pass away.
Gift giving
When people give away their assets as gifts while they are still alive, they can decrease their estate size, which also lowers their estate taxes. Since they have transferred their property’s ownership rights to their chosen heirs, they also remove these properties from their will.
For instance, the Internal Revenue Service (IRS) has announced a $19,000 per recipient gift tax exclusion for the year 2026. This opportunity allows both single people and married couples ($38,000) to gift assets to their family multiple times a year, tax-free.
Living trust
Assets placed in a living trust can carry specific distribution instructions for their designated beneficiaries. These can include real estate property, personal property, bank accounts and business interests.
Since the trust legally owns these specific assets, they do not count as part of the owner’s estate and therefore do not require probate.
With careful planning, individuals can become more aligned with their goals
With the right guidance, people can enhance their estate plans and establish their financial goals for the future, while also minimizing their estate taxes and safeguarding their right to be treated by their doctors with dignity in the event of incapacity.