Estate tax planning in Virginia

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Who Benefits From Tax-Aware Planning

Estate tax planning for Virginia families with significant assets

A wills and trusts attorney in Lynchburg helps set the legal foundation for how property passes, who manages affairs, and how to plan for privacy and efficiency. Davies & Davies prepares core estate planning services that align documents with real assets, from homes near Boonsboro and Rivermont to investment accounts and business interests throughout Central Virginia. Plans are built to reflect family priorities, minimize administrative friction, and coordinate with beneficiary designations and account titles.

Strategies To Reduce Exposure

Tools that move value to the next generation efficiently

Lifetime gifting can shift growth out of the estate through annual exclusion gifts, 529 plan funding, or direct payment of tuition and medical expenses. Irrevocable trusts such as ILITs can keep life insurance proceeds outside the taxable estate while providing cash for taxes or equalization among heirs. Credit shelter provisions help married clients use both exemptions, and generation-skipping planning supports multi-generation goals for families in Lynchburg, Danville, and Virginia Beach.

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Planning that aligns documents with real assets

Tax-aware planning works best when legal structures match the portfolio and cash flow. Davies & Davies syncs trust terms, beneficiary designations, and funding steps with wills and trusts so distributions and trustee powers do not conflict with account titling. This coordination reduces administrative risk later and keeps the plan practical for future fiduciaries.

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Preparing for exemption shifts and new guidance

Federal exemption amounts and IRS guidance evolve. Our team tracks developments and recommends timely adjustments so clients capture opportunities and avoid unpleasant surprises. Reviews are especially important before major asset sales or when relocating within Virginia.

Questions We Hear Most Often

  • What is the estate tax threshold and rate?

    The federal exemption and the top rate change over time, and planning should account for possible reductions. A review estimates exposure and identifies strategies that fit your balance sheet.

  • Can life insurance help with estate taxes?

    Yes. Life insurance can supply liquidity for taxes so real estate or a business is not sold under pressure. When owned by an ILIT, proceeds are generally outside the taxable estate.

  • How do lifetime gifts affect my taxes in Virginia?

    Virginia has no separate gift tax, but larger gifts can require a federal Form 709 and may use part of your lifetime exemption. Gifts above the annual exclusion also carry over your cost basis to the recipient, so planning with your CPA and Davies & Davies helps balance estate tax reduction with future capital gains.

  • Do I need a trust to reduce estate taxes?

    Certain irrevocable trusts can remove assets from the taxable estate or shift future appreciation, including ILITs, GRATs, SLATs, and charitable trusts. A revocable living trust does not reduce estate taxes by itself, so Davies & Davies evaluates whether targeted irrevocable structures fit your assets, liquidity goals, and family needs.

Take the First Step.

You don’t need all the answers to get started—you just need an attorney that's ready to help you.