A tax estate attorney specializes in the legal aspects of estate and inheritance taxes, and can advise clients on how to minimize taxes when passing on property or money. The law on this area is complex, and it’s important for estate planning to be done with an experienced professional.
This article outlines some of the most important questions to ask when hiring a New York estate tax attorney. Some of the key points include whether an attorney charges hourly or flat fees, the number of hours they expect to work on your case and their experience.
Estate tax laws are constantly changing, and a knowledgeable attorney can help protect their client’s wealth and ensure they’re making the most of their exemptions and strategies. A lawyer with experience in this area can also review existing documents and ensure they’re compliant with current regulations.
The estate tax is a complicated issue that can affect both individuals and trusts. It’s best to consult an estate tax attorney for advice on the proper way to transfer assets, and how to plan for unforeseen circumstances that may arise after death.
A good New York estate attorney should be able to explain their experience with the tax laws in the state, and how they can be applied to a particular situation. The attorney should also be familiar with federal law and how it could impact their clients’ affairs during and after death.
Some of the most common services offered by estate attorneys include assisting clients in creating a trust, arranging for the transfer of property upon death, and advising on how to avoid or mitigate estate taxes. Some of these attorneys may also help clients with tax matters such as avoiding capital gains tax on the sale of real estate or minimizing income tax on distributions from traditional retirement accounts.
The most common fee structure for estate planning lawyers is an hourly rate. While the amount charged will vary by attorney, many charge between $200 to $400 per hour. The most experienced lawyers and those working in large firms will generally charge more than that. Flat fees are another option, and they can be used on simpler or more routine cases.
An attorney’s invoices should clearly state which parts of their services are taxable and which are not. For example, an estate attorney who advises on how to reduce federal taxes on property transfers may be able to claim some of their fees as a miscellaneous itemized deduction. Other related expenses, such as fees for trust tax preparation and investment advice for a living trust, may also be eligible for a deduction.
If your net worth is nearing or above the estate tax threshold, it’s a good idea to hire a wealth advisor and an attorney who focuses on estate and inheritance taxes. Together, they can help you learn about strategies to minimize your tax burden and avoid the estate tax cliff. They can also help you take advantage of exemptions that could save you tens of thousands in taxes.