An estate tax attorney can help people with a variety of tax-related issues. These can include transferring property and assets to family members, setting up trusts and settling tax disputes. In addition, they can assist with estate planning strategies that help reduce taxes. A Smithtown estate tax lawyer can also provide insight into how the laws on these matters vary from one state to another.
The term “tax estate” refers to the total value of a person’s property at death, including cash and securities, real estate, life insurance policies, annuities and business interests. In order to determine the amount of estate tax due, the IRS requires an inventory of the items and their fair market values. A New York estate tax lawyer can assist with the preparation of this inventory and filing of federal and state taxes, if necessary.
Inheritance tax laws can be complicated. In addition, there are many exemptions and laws that can make things even more complex. Having an experienced Smithtown estate tax lawyer on your side can ensure that you get the best advice and protection available.
Legal fees that are related to preparing and filing an estate tax return are usually eligible for deduction as miscellaneous expenses. These fees may include legal advice concerning the transfer of property to avoid or minimize tax, as well as tax preparation and account custodial services for trusts owned by an estate. However, fees for creating a trust do not qualify as eligible deductions.
A qualified tax attorney is licensed to practice law in a jurisdiction and has a Preparer Tax Identification Number (PTIN). In addition, they should have significant experience and expertise in the area of taxation. It is also important to consider their specialization and designations/credentials. For example, a qualified tax attorney who specializes in estate planning and trusts should have an LLM or a CTEP.
Several strategies can be used by high net worth individuals to lower their estate tax burdens. For instance, a heir can gift assets to other relatives or friends without incurring a gift tax if the gift is below the annual exclusion limit. Moreover, a heir can use a charitable gift to fulfill philanthropic goals and lower their overall tax liability at the same time.
Despite the changes in estate tax laws, it is still possible to save on taxes by taking advantage of various tax-savvy strategies. For instance, a philanthropic donor-advised fund can be used to fulfill philanthropic goals and reduce or eliminate federal estate taxes. Individuals can also set up their estate to take full advantage of portability, which allows a spouse to utilize the unused exemptions of the deceased partner. In this way, the estate can transfer a larger amount of money with less impact on taxes. In the past, this was not always possible. Contact a skilled Smithtown tax attorney today to discuss your estate tax needs. They will be able to advise you on the best strategy and ensure that your taxes are filed properly.