Even though Louisiana doesn’t have a state estate tax, federal estate tax still applies—and for high-net-worth families, that can mean a substantial hit to what’s passed on.
Fortunately, there are smart ways to reduce your taxable estate and preserve more of your wealth for your loved ones or charitable causes.
Understand the Federal Exemption
As of 2024, individuals can pass up to $13.61 million ($27.22 million for married couples) without federal estate tax. But this exemption is scheduled to be cut in half in 2026 unless Congress acts.
Make Strategic Gifts During Life
You can give up to $18,000 per recipient per year (as of 2024) without touching your lifetime exemption. Gifting now reduces your taxable estate later.
Common strategies include:
- Helping children with down payments
- Funding 529 plans for grandchildren
- Making annual charitable gifts
Leverage Irrevocable Trusts
For larger estates, trusts like:
- Spousal Lifetime Access Trusts (SLATs)
- Grantor Retained Annuity Trusts (GRATs)
- Irrevocable Life Insurance Trusts (ILITs)
…can remove appreciating assets from your estate while maintaining family access or control.
Give to Charity with Purpose
Charitable giving reduces estate taxes and supports causes you care about. We help clients structure gifts using:
- Donor-advised funds
- Charitable remainder trusts
- Bequests in wills or trusts
Start Sooner Than Later
The best time to implement tax-saving strategies is before your estate hits the exemption limit—not after. Waiting can cost your heirs tens or even hundreds of thousands of dollars.
Let’s Protect What You’ve Built
We’ll work with you and your financial advisor to implement a tax-smart estate plan tailored to your goals.
Book a strategy session to get started.
