Need for an Estate Tax Attorney
Navigating the complex labyrinth of estate taxes, tax filings, and probates requires an adept attorney who has successfully guided clients through the process time and time again. Although most are aware and familiar with the principle of taxation, the number of intricacies involved sends very few people seeking to avoid or minimize their tax liabilities, in-depth, to a legal professional. The gap between what is owed and what is paid often jolts individuals and businesses into action to reduce tax liability through tax planning . Even the simplest of estates will require the counsel of an estate tax attorney, decrease long-term tax liability through appropriate estate tax planning, and manage tax-related litigation for properties generated within the state or outside of its borders. Estate tax lawyers also help to minimize taxes through probate planning and strategies and can substantively reduce and avoid any taxes owed after death from any property held in a trust or joint ownership.
What to Consider When Searching for an Estate Tax Attorney
A competent estate tax attorney possesses several key qualities that enable them to provide effective legal counsel in this highly specialized area of law. For starters, an estate tax attorney should have a solid understanding of the tax laws, both federal and state, as they pertain to the administration of estates and the estate tax. This understanding should be beyond a general comprehension; the estate tax attorney you hire should be well-versed in the particular estate tax laws of the state in which your loved one resided at the time of passing. If they don’t demonstrate this expertise, it’s best to move on in your search.
A superior estate tax attorney will also have a wealth of experience in this specific area of law. They should be able to advise you clearly and quickly about your own state’s estate tax law, including rules about exemptions, filing deadlines, and what is included in the estate for the purposes of taxation and what isn’t. But a knowledgeable estate tax attorney will also be able to tell you how your state’s law compares and contrasts with other states, and whether certain provisions apply in your situation.
When searching for estate tax attorneys, it’s also important to read client reviews before contacting them. Previous client reviews and ratings can help narrow the candidate list down to who is viewed as the most trustworthy, helpful and professional among previous and current clients. Further research may include calling the state bar association to check an estate tax attorney’s credentials and practice record, or asking other local estate lawyers for their recommendations.
Good communication skills are an absolute must when working with an estate tax attorney. Ideally, you want someone who is able to communicate the relevant portions of estate tax law without resorting to legalese that can be difficult for someone without a law degree to understand. A great estate tax lawyer will have the courtesy to listen to and answer your questions in a timely and respectful manner.
Finding an Estate Tax Attorney in Your Local Area
There are several ways you can find out who the best estate tax attorney in your area is. One way is to ask friends who have experienced tax controversies for references. You can also ask your accountant or financial advisor for recommendations. Most estates do not go through estate tax controversies, and the ones that do usually end with a settlement or some other form of resolution. Thus, you may find that the best way to pick out an experienced probate attorney with a background in tax matters comes down to an Internet search.
An Internet search engine will provide you with a list of all the local attorneys and their backgrounds. Most state bar associations even list attorneys and their areas of legal practice. They also provide where each attorney currently practices. There are web-sites that review virtually all attorneys in the United States, providing bio’s, client reviews, and lists of affiliations.
Take the time to write down and then call or e-mail each estate tax attorney listed on the Internet to find out if he or she has a background dealing with tax controversies. You can often tell from the website whether that attorney deals with cases such as yours. Most estate tax attorneys are also likely to list their areas of practice on their websites.
The first question to ask an estate tax attorney on the phone is what types of cases he or she currently practices. During that phone conversation with the estate tax attorney, find out what that attorney’s initial thoughts are in handling your case. If you have already been contacted by the IRS, you want an experienced attorney who recognizes the importance of returning calls in a timely manner and does not take weeks to respond. If an estate tax attorney does call you back and takes an interest in your case, mark down that estate tax attorney’s contact information on a piece of paper.
When you meet with an estate tax attorney, ask how long he or she has been working on estate tax litigation at their law firm. Write down the answers during the interview. Many estate tax attorneys will want to charge you for the initial consultation, but others do not. It is your time and money, so get to the point.
When hiring an estate tax attorney, make sure that you feel you can do business with him or her. Also, ask if the firm uses up-to-date technology such as computer systems, laser printers, and PDF applications in lieu of copying paper. Some law firms still hand-copy all of their files on printers that produce copies that easily tear and that select paper clips and staples seem to stick to. These firms will shuffle papers around typically three times before the papers arrive in your hands, can you believe that? The last thing you need is another delay in your estate tax matter.
Estate Planning and the Role of an Estate Tax Attorney
An estate tax lawyer can facilitate the estate planning process by ensuring that a client’s estate plan meets the client’s goals, complies with federal and state law and optimizes the client’s tax situation. Estate tax lawyers often recommend certain actions for clients to take, including implementing a variety of strategies to ensure that the client’s estate is handled in an orderly manner and according to the client’s wishes. Often, meeting with an estate tax lawyer can provide the family or loved ones the client will leave behind with peace-of-mind that the client’s estate will be settled in the way they would have wanted.
Planning for an efficient estate plan is a major focus of many estate tax lawyers . An estate tax lawyer can assist a client estate with a wide range of issues, including:
A knowledgeable estate tax lawyer can ensure that a client’s estate plan is properly structured to optimize the client’s two primary objectives – ensuring that the client’s goals are met, as well as minimizing the estate and financial tax liabilities that often accompany a client’s estate. One common estate planning strategy that an estate tax lawyer can recommend to a client is establishing a trust. For most types of trusts, once you have established the trust your will generally does not need updating. This is because as the law changes, the laws that apply to your trust will update along with the changes. It is important to make sure your trust is continually funded so that your asset distribution strategies are followed after you pass away.
Frequently Held Misconceptions Concerning Estate Tax Attorneys
There are many misconceptions about who an estate tax attorney is, and whether or not you truly need him/her. One misconception is that an estate tax attorney is only for the wealthy, corporate types. That could not be further from the truth. An estate tax attorney is actually very important for the average American as well. He/she is not just there to help with tax issues and the distribution of wealth from generation to generation. They are also there to help you minimize your taxes if you do end up receiving a significant inheritance, so that all your funds are not subtracted from your tax benefits. However, it is true that some estate tax attorneys will only work with those in the high income bracket simply because they have the most issues come up concerning their estates so they make the most money on it. As with all things, not every attorney is right for you.
Another misconception is that you only need to get an estate tax attorney when someone dies. This is simply untrue. If you are worried about the future of your finances, and who will get them when you go, then you should consult an estate tax attorney. This should occur while you are there to talk about financial matters. He/she can offer advice to help you along the way so that when you do pass away, you can leave it behind to whoever you wish without any issues. Consult a local estate tax attorney for more advice.
Queries to Pose to an Interested Estate Tax Attorney
When meeting with a potential estate tax attorney, there are several questions that you should ask in order to best evaluate him or her.
1. Experience in Situations Similar to Yours
While not all experiences can be identical, it is helpful to know if an estate tax attorney has experienced your type of situation before. This experience not only helps the attorney understand your individual situation, but it shows you that he or she has experience with the IRS and estate taxes in general.
2. Fee Structure
Being aware of how an estate tax attorney charges you for their services is vital. Meeting with an estate tax attorney is often stressful and one that is usually retained on short notice, so you do not want to find out they have a fee restructuring policy that leaves you paying thousands more than you thought. It is important to find out if they charge an hourly rate, by the case, or by some other measure. That said , a retainer may be an even better thing to ask about because it gives you a security knowing what they will be working on at any given time.
3. Their Approach to Estate Planning/Taxation
Does your estate tax attorney have a different approach to estate planning or taxation issues than others? Of course, every estate tax attorney is going to suggest something slightly different. However, you should find out if he or she does something different than the others. For instance, some estate tax attorneys have long relationships with multiple CPAs. Others have suggestions on certain techniques you may be able to use under the current laws. All in all, you should be able to gauge their level of knowledge from the options provided.
4. Comfortability
You should feel comfortable around a potential estate tax attorney. They should be willing to work with you and be approachable. Do they immediately address your concerns or do they brush them aside? Pay attention to how they speak to you and how they answer your questions. Even if you feel comfortable with a potential estate tax attorney, there is nothing wrong with getting a second opinion.