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Helping Clients With Both Income and Estate Tax Planning Matters

  • Answering your questions about income and estate taxes
  • Straightforward guidance throughout the tax planning process
  • Discussing how to minimize your tax liability
  • Providing information on gifting and gift tax exclusions
  • Evaluating your estate’s assets and potential tax liabilities

Straightforward Guidance Throughout The Tax Planning Process

The way income and assets are taxed is notoriously challenging to understand. When you have concerns about tax planning and how your estate may be taxed in the future, it is essential to talk through your situation with lawyers and tax experts who have the knowledge needed to explain your obligations.

At Stefans Law Group PC, our highly skilled team of lawyers and experts provides both income tax planning & estate tax planning services to clients in the Long Island area from our four office locations. We advise clients on all types of income tax and estate issues, from planning for Medicaid eligibility to overall solutions to preserve your wealth.

Income Tax Planning and Preparation

Our year-round tax planning and tax preparation services endeavor to maximize net income for you. We provide tax services for:

  • Individuals
  • Corporations
  • Partnerships
  • Limited Liability Companies
  • Trusts

Protecting Your Assets Through Generosity

Gifting can be a way of distributing your assets to minimize and eliminate taxes that are to be paid on your estate, and it prevents you from having to file an estate gift tax return. When you gift money to a loved one or beneficiary, you reduce your overall estate value and the associated taxes. Two types of gift tax exclusions may apply to your situation:

  • Annual exclusion: The annual gift tax exclusion in New York is $15,000. This means that you can gift up to $15,000 to any one person, or $30,000 to a married couple, without having to incur any tax on the gift. This is a yearly exclusion, as the $15,000 would need to be given in a calendar year (Jan. 1 to Dec. 31). The yearly exclusion is subject to change, so it is essential to talk to your attorney regularly if you are gifting estate money. Your gifts can increase or decrease with the changes in the annual exclusion.
  • Lifetime exclusion: While the federal estate tax exclusion amount is over $11 million, the New York state gift tax exclusion for 2021 is $5,930,000. This amount typically increases incrementally every year to account for inflation. This means that if someone passes away in 2021, there would be no estate tax on money that was gifted up to the more than $5 million amount listed.

Estate Tax Reduction Strategies

There are many ways in which we can legally work to reduce the amount of estate taxes that you will pay. One way is through gifting money, which is discussed in the below section. Another way is through setting up trusts. A trust can be established to house funds for charitable organizations (called a charitable trust), form an irrevocable life insurance policy (life insurance trust) or establish a qualified personal residence trust where your residence’s ownership is transferred to the trust.

Learn More About Your Tax Options

Talk to us about income tax preparation or estate tax planning. To schedule a free consultation with a member of our well-respected team, contact us online or call our firm at 516-692-2744.