A Long Island inheritance attorney can provide help to people whose estates will be subject to taxes in New York. If you stand to inherit and you are concerned your inheritance is going to be reduced as a result of estate taxes, we can also provide you with assistance.
Mark S. Eghrari & Associates PLLC offers the advice that clients need to make smart choices about asset protection. We know that estate taxes can significantly affect the value of an estate which heirs should be able to inherit. We also understand that estate taxes can threaten the futures of farms and family businesses. We provide you with sound legal advice on reducing or eliminating the estate tax burden in order to protect a legacy. Contact us today to learn more.
Who Should Get Help from a Long Island Inheritance Tax Attorney?
In New York state, there actually are no inheritance taxes. Instead, there are estate taxes. You should talk with an attorney if you believe that these taxes will be assessed upon your death. If someone you love has died and you are concerned about the estate tax consequences, you should also get help from a Long Island inheritance tax attorney.
To determine if an estate is going to be subject to taxes or not, you need to know the basic exclusion amounts in New York. The basic exclusion amounts refer to an amount of wealth which can be passed on tax free. Not every estate is taxed, and both the state of New York and the federal government will allow smaller amounts of wealth to be passed on without estate taxes having to be paid.
The basic exclusion amounts in New York vary by the year when the death takes place. This means if someone dies before 2019, they will have a smaller excludable amount of wealth they can transfer on to family members than if they die after January 1, 2019. Starting on January 1, 2019, the New York excludable amount and the federal excludable amount will be the same. Until that time, NY will tax smaller estates than the federal government does.
The New York Department of Taxation and Finance has a chart on its website showing the amount that can be passed on without taxes being assessed on the wealth. For deaths happening between April 1, 2016 and March 31, 2017, the excludable amount is $4,187,500. If an estate exceeds this, then taxes are assessed. While this can seem like a lot of money, it is important to remember that business assets and farmland can count towards the taxable value of an estate.
Why it is so Important to Get Help from a Long Island Inheritance Tax Attorney
Trying to reduce your estate tax burden is always important. However, in New York, the stakes are especially high. This is because of the so-called estate tax cliff. Under NY law, unlike under federal law on estate taxes, estate taxes are charged on a person’s entire estate once your estate exceeds the basic exclusion amount by five percent or more. The taxes apply to the first dollar if you are taxed.
For a death between April 1, 2014 and March 31, 2015, for example, the basic excludable amount was $2,062,500. Someone whose estate was valued at $2,062,300 would not have an estate tax liability. However, if your estate is valued at $2,165,625, you would be taxed on the full amount of the estate value with no exclusions. The tax owed would be $112,050, whereas you would have had no tax assessed if you’d had just a slightly smaller estate.
Getting Help from A Long Island Inheritance Tax Attorney
Although there is no inheritance tax charged in NY, the estate tax laws can lead to a very substantial tax bill after a death. It is very important to make plans to try to protect your company, farm, or the wealth that you have built over the course of your life. The sooner you speak with a Long Island inheritance tax attorney, the better able you will be to try to protect the legacy that you want to leave.
Mark S. Eghrari & Associates PLLC provides representation to clients who are involved in estate planning and who want to ensure their heirs do not lose out on an inheritance as a result of substantial estate taxes. If someone who you love has passed away and you are concerned about estate taxes, we can also help you. Give us a call at (631) 265-0599 or contact us online to speak with a member of our legal team and to learn more about the assistance that we offer.