In the field of managing people’s money as well as business succession, estate planning is thought of as a family issue, whereas IRC compliance is seen as a business requirement. Nevertheless, these two components are connected, particularly concerning concentrative wealth, family enterprises, and newcomers in the United States. Inappropriately aligned estate planning strategies and tax law may end up giving rise to unpredicted tax liabilities, probate delay, or even IRS audit.

That is why a tax attorney is particularly important at this stage. This is because a tax attorney is in a position to analyze the circumstances of the case and advice the client appropriately. The tax attorney lawyer is someone who can guide the individual on the state of taxes regarding estates, and through that, one can have the potential chance to make the changes happen.

While engaging the services of an estate planner or an accountant, you will be assured of both federal tax knowledge and structures through a tax attorney.

Understanding the Scope of Estate Planning

Estate planning laws in the United States are comprised of probate laws in the individual states, federal estate tax laws, and tax laws as prescribed by the Internal Revenue Service. Key components include:

• Comprising of Estate Tax (where the rate ranges from 18% to 40%, for the estates over $ 13.61 million in the fiscal year 2024).
• Gift Tax (lifetime exemption corresponding to the estate tax)
• Generation-Skipping Transfer Tax (GSTT).
• Regarding the taxes that have to be paid, there is the capital gains tax on inherited assets.
• Income in Respect of a Decedent (IRD) rules in relation to business owners or retirement assets.

It is especially important for high-net-worth individuals with businesses, complicated family situations, or sundry other circumstances where a lapse in legal planning can hamper the proper transfer of wealth.

Role of a Tax Attorney in Structuring

A tax attorney is not a professional you turn to only when you get a knock on the door from the Internal Revenue Service; instead, they are involved in planning one’s estate. Their primary roles include:

·         Asset Base and Tax Exposure

There are several things that tax attorneys consider, which include your net worth, the nature of assets such as real estate, investment, retirement accounts, shares in businesses, among others, and the future liabilities that may be recognized under the IRC. This works to help develop a strategy on how to avoid estate and gift taxes.

·         Drafting Legal Structures

They oversee generation-skipping trusts, GRATs, FLPs, and CRTs – all designed to facilitate change of ownership without necessarily incurring taxes.

·         Role in Business Succession Planning

In the United States, especially where the business is a family business, to minimize the life and estate tax issues with the IRS, a tax attorney establishes a buy-sell agreement and transfer provisions, as well as valuation methods. Help from the tax attorney in Pasadena or other places is the one who can regulate and mandate the process of succession planning.

Transferring of the estate is one of the key tasks through which one can make the succession planning successful.