When you sell real estate, the gain in value is subject to taxes, known as capital gains taxes. These taxes can be a significant barrier to building generational wealth. The potential tax burden from the sale of property can diminish the wealth you pass on to future generations.

However, the good news is that capital gains taxes can often be reduced, deferred, or even eliminated entirely by using the right strategies. By leveraging tools such as a 1031 Exchange or other tax-planning techniques, you can minimize the tax impact and maximize the wealth you pass down to your heirs. Strategic planning is key to overcoming this obstacle and securing a strong financial future for your family.

It's essential to recognize that every dollar paid in taxes reduces your overall wealth. When selling your primary residence or investment properties, the tax implications can have a significant impact on the wealth you accumulate or pass down to future generations.

A crucial element in minimizing or eliminating capital gains taxes is understanding your cost basis—the value used to calculate the taxable gain when you sell a property. Properly managing your cost basis can help reduce the amount of tax you owe.

Through a comprehensive real estate plan, we work with you and your trusted tax advisor to implement strategies that minimize or even eliminate capital gains taxes, helping you preserve more wealth for your family’s future.

Cost basis can either be "stepped up" or "carried over," depending on the circumstances. In the event of the property owner’s death, the cost basis of inherited property may be stepped up to its current market value, potentially reducing capital gains taxes when the property is sold by the heirs. On the other hand, a carry over basis means that the original cost basis is passed on to the heirs, which may result in higher taxes when the property is sold.

In partnership with your trusted tax advisor, and with proper planning, we can employ strategies to minimize the impact of capital gains taxes and help meet your family’s objectives.

When an estate is transferred to heirs, estate taxes may apply based on the value of the estate, and heirs may also face inheritance taxes. Understanding the potential tax impact of both estate and inheritance taxes is crucial when p

Probate is the legal process through which an estate is settled, debts are paid, and assets are distributed to heirs or beneficiaries. When it comes to selling real estate through probate, the process involves a series of court-regulated steps that must be carefully followed. This includes strict deadlines, specialized documentation, and oversight by the court during the marketing, offer, negotiation, and sale of the property.

As a result, you should anticipate potential delays and additional expenses associated with the probate process. It's important to work with professionals who understand the intricacies of probate to ensure the process is managed efficiently and in accordance with legal requirements.

A will is a legal document prepared and executed by an individual in accordance with the laws of their state of residence at the time. It is designed to govern the distribution of their estate and settle their legal affairs after death. However, a will does not avoid probate; instead, the probate process is used to interpret and execute the will’s instructions.

It is important to consult with a trusted legal advisor to ensure that your will is properly drafted and that it aligns with your estate planning goals.

Holding assets in a trust can help avoid the probate process, allowing for a more streamlined transfer of assets upon death. However, challenges may still arise if family members disagree on how to manage or distribute the assets. In these cases, family disputes can occur, but they can often be mitigated through proper estate planning.

This is not intended as legal advice. Please consult with a trusted legal advisor for all estate-related matters.

We work with your team of trusted advisors to ensure the plan you decide on meets all aspects of your financial and real estate goals.

 

A Real Estate Plan begins with a simple Strategy Session to discuss your family's goals.