Whether you’re preparing for your own death or you have inherited a substantial estate, you need to consider how taxes might affect the amount your heirs receive. An attorney can help you minimize tax liability by creating trusts or wills that limit taxable gifts and inheritance. A lawyer can also help you set up a special trust for life insurance that shields the proceeds from estate taxes. He can also help you plan a business succession and reduce capital gains tax on the sale of a company.
Tax attorneys often have backgrounds in law and accounting, although they may not always have degrees from those fields. They must complete a minimum of three years of undergraduate studies, after which they can pursue a law degree from an accredited institution. After graduating, they must complete a two-year judicial clerkship and obtain a license to practice law. Some lawyers specialize in one area of law, while others are general practitioners.
Many people retain the services of both an estate planning attorney and an accountant. A good relationship between the two professionals can maximize tax breaks and minimize future liability for estate and gift taxes, as well as generation skipping transfer taxes. In fact, an accountant can work with your attorney to ensure that all legal documents are properly prepared and filed, reducing the likelihood of errors.
In addition to helping clients with their tax planning, an attorney can provide a variety of other legal services. For example, he can help you contest an excessive property tax assessment by protesting through the local tax commission or filing a judicial review suit in Supreme Court. A lawyer can also assist you in filing state and federal income taxes and resolving disputes with the IRS.
A New York estate tax attorney is an important asset for anyone who has a large net worth or who plans to leave behind a significant amount of money. The law requires that the executor of an estate file a REV-1500 and pay any applicable estate income taxes, but a lawyer can help you avoid fines and penalties for failure to comply with tax laws.
Several types of legal fees are tax deductible, including those paid to an estate planning lawyer. However, the exact amount that is deductible depends on the nature of the fees and how they are incurred. For example, if an estate planning attorney provides advice about constructing a trust that generates income, the cost of that advice is likely to be tax deductible. Similarly, investment advisory fees and custodial or account administration fees for trusts owned by the estate are also typically tax deductible. The tax code is complex, and it’s essential to speak with an experienced estate tax attorney before you hire him. He can explain the tax deductible fees that apply to your particular situation and determine which expenses are most beneficial for you. He can also provide you with a detailed estimate of how long your case is likely to take and the total costs associated with it.
