Estate Tax Planning Lawyers

Estate Tax Planning Lawyers in the United States

The federal estate tax applies to estates exceeding $13.61 million per individual in 2024. That threshold sounds high, but it's set to drop by roughly half after 2025 unless Congress acts. A qualified estate tax planning lawyer helps you structure your wealth to minimize tax exposure and protect what you pass on to your heirs.

What Estate Tax Planning Covers

Estate tax planning focuses on legally reducing the taxes owed when assets transfer at death or during your lifetime. This includes strategies like establishing irrevocable trusts, making structured lifetime gifts, creating family limited partnerships, and using charitable giving vehicles to lower your taxable estate.

Lawyers in this area also handle generation-skipping transfer tax planning, business succession structures, and coordination between federal and state-level estate taxes. Roughly 17 states plus the District of Columbia impose their own estate or inheritance taxes, often with much lower exemption thresholds than the federal level.

When to Hire an Estate Tax Planning Lawyer

• Your total estate value approaches or exceeds the federal or your state's estate tax exemption threshold
• You own a family business or significant real estate holdings that could trigger a large tax bill at death
• You want to establish trusts or gifting strategies that comply with IRS rules while maximizing wealth transfer
• The scheduled 2026 reduction in the federal exemption amount could affect your estate
• You've experienced a major life event like a marriage, divorce, or inheritance that changes your financial picture

How the Estate Tax Planning Process Works

Your lawyer starts with a full inventory of your assets — real property, investments, business interests, retirement accounts, and life insurance. They calculate your estimated taxable estate under current law and identify areas where strategic planning can reduce that number.

From there, the lawyer designs a plan using specific legal tools. These might include grantor retained annuity trusts (GRATs), qualified personal residence trusts, or annual gift exclusions set at $18,000 per recipient in 2024. The plan gets documented, funded, and reviewed periodically as tax laws change.

How Tax Savings and Financial Outcomes Are Calculated

• Federal estate tax rate — currently 40% on amounts exceeding the exemption, making the potential savings from proper planning substantial
• Lifetime gift exclusions — annual and lifetime gift limits allow tax-free wealth transfers that directly reduce the size of the taxable estate
• Trust structures can freeze asset values at the time of transfer, so future appreciation passes to beneficiaries free of estate tax
• Charitable remainder trusts and donor-advised funds generate income tax deductions while removing assets from the estate
• State-level estate taxes vary widely, with exemptions as low as $1 million in some jurisdictions

Frequently Asked Questions

Will I owe estate taxes if my estate is below the federal exemption?

You won't owe federal estate tax, but you might still face state-level estate or inheritance taxes. Several states set their exemption amounts far below the federal threshold. Your lawyer can identify whether your state imposes its own tax and plan accordingly.

How far in advance should I start estate tax planning?

The sooner, the better. Many of the most effective strategies — like annual gifting programs and irrevocable trusts — work best over time. Starting early gives you more flexibility and lets asset appreciation occur outside your taxable estate. Most attorneys recommend reviewing your plan every two to three years or after any major tax law change.