Long Island estate planning lawyers provide assistance to individuals and families who could be affected by state or federal estate taxes. Many people with larger estates worry about the impact of estate tax on their estate and want to find ways to avoid being subject to substantial taxes after death. A variety of tax planning tools are often used to try to reduce or avoid estate tax, including inter vivos giving, trust creation, and creation of a family limited partnership.
Soon, however, it is possible that federal laws will change on estate tax. If a change to the law occurs, this could affect the way that people make plans for what happens after death.
Eghrari Wealth Training Law Firm can provide assistance to clients in understanding any legal changes that impact their estate planning process. Our legal team can assist you in making certain that you have the right plans in place based on the current state of the law and can guide you through all aspects of the estate planning process. Give us a call today to find out more.
How Could Tax Reform Change Federal Estate Tax Rules?
President Donald Trump and the Republicans have indicated their intentions to overhaul the tax code and make fundamental changes to the federal tax rules. As the New York Times explains, one possible change that could result from tax reform is the elimination of estate tax.
Donald Trump discussed eliminating estate tax when he was campaigning, and there have been ongoing efforts for years to either eliminate this tax entirely or to change the rules for the tax so fewer families have to pay it. In 2010, for example, estate tax was suspended for the year- but it was reinstated the next year. This meant that if someone died in 2010, his estate wouldn’t be subject to taxes, but big taxes might have been owed had he died just a few days later in 2011.
It is unclear whether the estate tax will actually end up being eliminated as part of tax reform efforts. The process of reforming the tax code is only beginning and it is likely to be a politically contentious process that could be fraught with disagreements.
Still, if changes are made, it seems like the estate tax will probably become more limited and apply to fewer estates due to the hatred for the tax that many politicians have. Many politicians, and individuals, don’t like the estate tax since it effectively ends up taxing many assets twice: once when the assets or money is acquired and then again when assets are passed on to heirs.
Will You Still Need to Make an Estate Tax Plan?
For individuals and families who live in New York, a change to the federal law does not mean that you will no longer need to worry about estate tax. The state of New York will still impose a tax upon larger estates of residents who live within the state’s borders. This means that if you live in New York or you own property in New York when you pass away, taxes could still be assessed.
Eghrari Wealth Training Law Firm can assist you with understanding whether your estate could be subject to taxation after you have passed away. If you will be taxed and you want to try to find ways to work within the legal system and use effective legal tools in order to reduce the taxes that must be paid, our legal team can assist with that process as well.
To find out more about how our firm can help you with all of your New York estate tax questions, you should reach out to our legal team.
Getting Help from Long Island Estate Planning Lawyers
Eghrari Wealth Training Law Firm can provide guidance to clients on how legal changes could affect their estate planning process. Our legal team monitors regulatory changes and keeps up with current laws to ensure that we can provide the most accurate and up-to-date information to all of our clients. We also provide comprehensive assistance in creating an estate plan that works within the current legal system to protect you, your assets and your loved ones.
To learn more about the estate tax help that we can provide to you, download our estate planning checklist. You can also give us a call at (631) 265-0599 or contact us online to talk with Long Island estate planning lawyers who are ready to help you make a personalized estate plan that is right for you. Call today to get your plans started.
- How to Maximize the Benefits of Charitable Gifting in Your Estate Plan - February 14, 2024
- 2024 Medicaid Guidelines for New York Seniors - February 7, 2024
- Young Adults and the Importance of Estate Planning - January 31, 2024