A Tax Estate Attorney is a lawyer who provides legal services related to the transfer of property from one person or entity to another, whether during life or at death. They can help with determining the correct amount of taxes to pay, filing tax returns and establishing trusts and other legal entities to manage assets. They can also assist with estate planning strategies that can reduce the size of an estate and its associated taxes.
An individual who needs to hire a Tax Estate Attorney should look for several qualifications, including experience and education. Typically, these lawyers need a bachelor’s degree in a subject like finance, accounting or law. Many also need to obtain a Preparer Tax Identification Number (PTIN) from the IRS, which is required for anyone who prepares federal income tax returns for compensation. They should also be members of The American College of Trust and Estate Counsel (ACTEC), an organization that researches, advises and improves trust, estate and elder law laws and procedures in the United States.
When preparing an estate plan, the tax attorney will consider various factors, such as the client’s goals, family relationships and charitable inclinations. They can then design an appropriate plan to meet those objectives and prepare the documents that will carry out that plan. They can also help clients with income tax considerations, such as minimizing taxation of assets transferred to beneficiaries and the timing of distributions.
Once the estate is settled, the tax attorney will work with the estate’s accountants to file the necessary tax returns and payments. This can include a final income tax return for the deceased, a federal gift and estate tax return and state inheritance and/or sales tax returns. They may also be able to assist with claiming deductions and credits, such as the unified credit or qualified domestic trust credit.
After the death of a loved one, an executor can hire a New York probate tax attorney to collect pertinent information from the family and advisers and complete a federal estate tax return. This return is due nine months after death, unless extended. It can be challenging to determine how much in taxes are owed and how to calculate the appropriate amount of tax to pay. The executor may also need to file an inheritance tax return for the beneficiary or beneficiaries.
An additional service that a New York probate tax attorney can provide is protesting excessive property tax assessments, either via the local property tax commission or through Supreme Court proceedings. They can also assist in reducing an estate’s taxes by filing back-taxes with the IRS. This can be complicated and requires the expertise of a Tax Estate Attorney with the appropriate knowledge of state and local property tax law. Generally, the tax attorneys can negotiate lower property assessment amounts with local tax authorities on behalf of their clients. In some instances, they can even have the property taxes reversed.
