Scranton Tax Planning & Preparation Lawyer
Estate planning can include a simple will, various types of trusts, long-term care planning, advance healthcare directives, and much more. But one part of estate planning that many people fail to acknowledge is taxes. Depending on the size of your estate, it may be subject to state and federal taxes that the estate may owe. When it comes to probate, the probate administrator may be responsible for paying taxes before the assets in the will can be distributed to heirs. If trusts are a part of the estate plan, more complex taxes may be applicable, such as the Generation Skipping Transfer Tax (GSTT), which is “the government’s defense against an end run around estate and gift taxes,” according to the Journal of Accountancy. With all of these potential taxable assets, it can quickly become confusing for an administrator. Similarly, it can become confusing for people who want to reduce their taxable estate when they learn about the taxes imposed on various types of trusts, such as the GSTT. Fortunately, an attorney can help explain everything to you. For help with any type of tax planning and preparation regarding an estate, call the Scranton tax planning and preparation lawyers with Haggerty Hinton & Cosgrove LLP.
Paying Probate Tax
For any simple will that has assets of $15,000 or more, taxes will apply. These taxes must be made on time and in full, otherwise the Internal Revenue Service (IRS) could impose penalties or the asset distribution may be delayed. Often, information that the probate administrator needs is with the IRS. In order to receive this pertinent tax information, the administrator has to send the IRS a letter including the decedent’s name, Social Security number, address, copy of the death certificate, a Letter of Testamentary approved by the court, and IRS Form 56. During a time of grief, it is easy to leave something out when compiling all of these forms and information, which can negatively impact probate.
Paying Estate Tax
Most estates do not pay any federal estate tax. However, very large estates can be responsible for hundreds of thousands or millions of dollars in taxes. Typically, these estates include trusts, such as generation skipping trusts, charitable trusts, irrevocable trusts, and asset protection trusts. What, if any, of these trusts are taxable, and how is this tax best paid? An attorney can help ensure that you minimize the taxes that you have to pay, while ensuring that you are not breaking any tax laws in the process.
A Scranton Tax Planning and Preparation Lawyer Can Assist You Today
The Scranton attorneys of Haggerty Hinton & Cosgrove LLPcan help you minimize your taxable estate with charitable trusts, gifting, and other trusts. We also assist clients with probate tax, and the payment of estate tax upon the death of your loved one. Taxes are complicated, especially during a time of grief, and the last thing you need right now is more stress from a missed deadline, fine, or tax information that you simply cannot locate. Feel free to call our Scranton law offices today at 570-354-5205 to schedule a free consultation.