Keep More of What
You’ve Built for the
People You Love
Estate taxes don’t just affect the ultra-wealthy. Business owners, real estate holders, and anyone with a growing estate can face significant federal transfer tax exposure. Osterhout Law helps Colorado Springs families plan proactively — so more of what you’ve built reaches the people you love.
Osterhout Law, P.C.
Colorado Springs Business & Estate Attorney
Colorado Springs, CO 80903
The Federal Estate Tax Is Real —
And Avoidable with the Right Plan
Colorado has no state estate tax. But the federal estate tax can take up to 40% of the taxable portion of your estate above the federal exemption threshold — and most people are surprised to discover how quickly a growing estate can get there.
Most people assume estate taxes are a problem for someone else — someone with a much larger estate. But business owners in particular can have deceptively large estates. A business worth $2–3 million, combined with real estate, retirement accounts, and life insurance, can push an estate well into federal estate tax territory without anyone realizing it until it is too late to plan effectively.
The good news is that the federal estate tax is one of the most plannable taxes in existence. There are well-established legal strategies — trusts, gifting programs, valuation planning, and business transfer structures — that can dramatically reduce or eliminate estate tax exposure. But almost all of them require time to implement effectively. Waiting until the year of death, or even the year of retirement, means leaving significant options on the table.
At Osterhout Law, estate tax planning is not a separate conversation from business planning — it’s the same conversation. The structure of your business, how you transfer it, and what your estate plan says all work together. We help you build a plan where every piece is coordinated and nothing is left to chance.
Talk to Christian Today
Christian C. Osterhout
Colorado Springs business and estate planning attorney. Helping entrepreneurs and families protect what they’ve built — and plan for what comes next.
Call 720-724-8456A High Exemption Is an
Opportunity — Not a Guarantee
The recent tax bill raised the federal lifetime gift and estate tax exemption, giving families and business owners more room to transfer wealth without triggering federal transfer tax. But a high exemption doesn’t mean your estate plan takes care of itself. The strategies that make the most of it — trusts, gifting programs, business interest transfers — still require time and deliberate planning to implement effectively.
The families who benefit most from a generous exemption are the ones who planned around it proactively — not the ones who assumed the problem would take care of itself.
Maximum federal estate tax rate on the taxable portion of an estate above the exemption threshold — applied to the assets you’ve spent a lifetime building.
Estate Tax Planning
Services
From basic exemption planning to sophisticated trust structures, here’s how Osterhout Law helps Colorado Springs families and business owners reduce their estate tax exposure.
Lifetime Exemption Planning
We help you use your federal lifetime gift and estate tax exemption strategically — transferring assets while values are lower, locking in today’s higher exemption before it decreases, and coordinating gifts with your overall estate plan.
Trust Formation
Revocable and irrevocable trusts serve different purposes in an estate plan. We draft trusts that match your goals — whether that’s avoiding probate, removing assets from your taxable estate, or protecting inheritances for the next generation.
Annual Gifting Programs
The annual gift tax exclusion allows you to transfer wealth each year with no gift tax consequence. Over time, a disciplined gifting program can move significant value out of your taxable estate — especially when coordinated with business interest transfers.
Business Interest Transfers
Business interests can often be transferred at a discount to fair market value using minority interest and lack of marketability discounts — reducing the taxable value of what passes to the next generation while still moving significant wealth.
Wills & Powers of Attorney
The foundation of every estate plan. We draft clear, carefully considered wills and durable powers of attorney that direct your assets, name your fiduciaries, and protect your family if you’re incapacitated or gone.
Estate & Business Coordination
For business owners, the estate plan and the business succession plan are the same plan. We make sure your wills, trusts, buy-sell agreements, and business transfer structure are all aligned and working together.
Estate Tax Planning Isn’t Just
for the Ultra-Wealthy
Regardless of where the exemption sits today, these three groups consistently have the most to gain from proactive estate tax planning.
Business Owners
A business valued at $2–3 million combined with real estate, retirement accounts, and life insurance adds up fast. Business owners often have far more estate tax exposure than they realize — and far more planning options available to them.
Real Estate Holders
Colorado real estate values have grown significantly. Multiple properties, rental income streams, and appreciated land can push an estate above the threshold — especially when combined with other assets.
Families Planning a Transfer
If you’re planning to pass significant wealth to children or grandchildren — whether through a business, real estate, or other assets — the structure of that transfer determines how much of it survives intact.
Common Questions About
Estate Tax Planning in Colorado
Does Colorado have an estate tax?
No. Colorado does not have a state estate tax or inheritance tax. However, the federal estate tax applies to estates above the federal exemption threshold. The recent tax bill raised the exemption, but proper planning is still essential to ensure you make the most of it.
How much can I pass to my heirs tax-free?
The federal lifetime exemption has been raised by the recent tax bill, allowing a significant amount to pass free of federal transfer tax. The exact amount should be confirmed with your attorney and CPA, as tax law continues to evolve. Strategic planning ensures you use the exemption effectively.
What is the difference between estate planning and estate tax planning?
Estate planning covers everything — wills, trusts, powers of attorney, healthcare directives, and asset distribution. Estate tax planning is a focused subset specifically aimed at reducing federal transfer tax. For business owners and families with growing estates, both are essential.
Do I need estate tax planning if I’m not wealthy?
Business owners in particular can have deceptively large estates. A business, real estate, and retirement accounts add up quickly. Even with a raised exemption, the right plan ensures you maximize what passes to your heirs, avoid unnecessary exposure, and coordinate the transfer with your broader goals.
Your Estate Deserves
a Real Plan
The best estate tax strategies take time to implement properly. The earlier you start, the more options you have. Call or email today to schedule your free initial consultation.