What does a tax lawyer do and how does that work when it concerns a will?
It is easy to understand, when a will is executed, it is very probable that the distribution of property, whether it is money, a house, etc. will be subjected to a taxable operation. This is where a tax lawyer comes into play.
Habitually, a tax lawyer handles one of two things. They assist a tax payer who is dealing with a state administration or the Internal Revenue Service over the issue of back taxes owed. They can also help a company with the payment of their taxes.
A tax lawyer is well-verse with the countless tax regulations and codes found at the state and federal level so having a tax lawyer to help may be useful when a legal will is executed.
What kind of situations may engage a tax lawyer and the execution of a legal will?
The deceased leaves a big amount of money to a family member in the final will. This may generate a "taxable event" for the beneficiary. There are tax regulations which allow a single distribution up to a certain sum for the recipient which only a tax lawyer may have knowledge of.
The deceased leaves a summer home to a charity. But, there might be mineral rights connected with the land which the deceased's relatives desires to keep in a trust. A tax lawyer can set up the trust and confirm that the funds will certainly go to the trust.
The deceased’s will contains provisions for a minor. The minor will receive a large sum of money at two allotted dates in his/her life both of which will have to happen when they are still a minor. We must consider if this will be the case of a taxable event for the minor's parents or caregivers.