Tax Planning Lawyer for Investments & Estates in New York City, NY

Estate Planning & Taxes in New York City

& Finding a Tax Lawyer for Investments & Estates

Many people invest without considering the tax implications of their decisions. However, tax planning can be a critical tool for maximizing the return on your investment. By considering the tax treatment of different investment vehicles, you can choose the option that will minimize your tax liability. For example, index mutual funds are taxed at a lower rate than actively-managed funds, making them a more tax-efficient choice for long-term investors. In addition, certain retirement accounts offer unique tax benefits that can help you save on your taxes.

Tax planning is also an essential part of estate planning. By considering the many tax breaks available, you can minimize the amount of taxes your family will have to pay upon your death. One way to do this is to take advantage of the annual gift tax exclusion. This allows you to give up to $14,000 per year to each of your children without incurring any gift tax liability. Another way to reduce your taxes in New York is to create a trust fund. Trusts can be used for a variety of purposes, including minimizing estate taxes. When you create a trust, you can designate how the assets in the trust will be used and who will benefit from them. This can help you to keep more of your assets in the hands of your family and less in the hands of the government.

By tending to both tax planning for investments and estates, you can ensure your hard-earned money stays in your pocket. If you have any questions about how to best structure your investments or estate for tax purposes, it is advised to connect with a New York tax attorney.

Tax Implications of Trusts

A trust in New York is a legal entity that can be used to hold and manage assets on behalf of another person. Trusts are often used for New York estate planning purposes, as they can help to minimize taxation and ensure assets are distributed according to the wishes of the trust’s creator. However, considering the potential tax implications of setting up a trust. In some cases, trusts may be subject to income tax, capital gains tax, or estate tax. Trustees may also be responsible for paying annual filing fees to the Internal Revenue Service (IRS), so it is important to consult with a legal expert and tax advisor before establishing a trust.

Beneficiary Designations and Estate Taxes

One of the most important concepts of estate taxes is beneficiary designations. A beneficiary designation is an agreement between you and a financial institution specifying who will receive your designated assets in the event of your death. This includes things like life insurance policies, retirement accounts, and bank accounts. While you are alive, you have the right to change your beneficiaries at any time. However, it’s important to remember that beneficiary designation agreements take precedence over wills and trusts. That means your assets will still be distributed according to your beneficiary designations, even if you have a formal will or trust in place. As a result, it’s essential to keep your beneficiary designations up to date to ensure your assets will be distributed how you wish.

Retirement Account Distributions and Estate Taxes

For many people, retirement savings are one of the most important assets they will ever have. Not only do these savings provide financial security in retirement, but they can also be passed on to loved ones after death. You must understand the tax implications of retirement account distributions and estate taxes, though. If you’re not careful, you could end up paying more in taxes than you need to.

When you take a distribution from a retirement account, you will generally be subject to income tax on the amount withdrawn. However, if you’re over the age of 59 1/2, you can avoid paying this tax by rolling the distribution over into a new retirement account — but you need to make sure this process is completed correctly. If it isn’t, you could end up paying penalties and interest on the rollover amount.

Delia Law Can Help With Tax Planning for Investments and Estates in New York

At Delia Law, we are highly trained and experienced attorneys who can help you with tax planning for investments and estates. We help minimize your tax liability and maximize your deductions. We can also help you plan for retirement, college, and other major expenses that are coming up in your life through the use of trusts, wills, and other estate planning tools. We can help you save for a rainy day, invest in a new business, or protect your assets from creditors. We can also help you plan your estate so that your loved ones will be taken care of after you’re gone. Contact us today to learn more about how we can help you with your tax planning needs.

New York-Specific Tax Laws


New York residents are required to pay taxes on income that was earned as well as for federal taxes. In fact, some people who don’t even live in New York must pay state taxes. If you lived elsewhere but acquired the money through a source in New York, you must pay state taxes on that income.

There are four main types of taxes in New York:

  • State income tax. New York State has a graduated income state tax, which means your tax rate increases as your income increases. The state’s tax rates range from 4% to 10.90%. For example, if you make under $8,500 annually, you will only be subjected to a 4% tax rate. However, if you make $25,000,001 and over, you are now facing the higher end of the state’s tax bracket at 10.90%.
  • Local tax. The local tax is a county-specific tax, and the rates also differ based on income. For example, in Tompkins County, the local tax rate is 4%. In contrast, in Suffolk County, the rate is 4.25%. The variation in local tax rates can make a significant difference in the overall amount of taxes you owe.
  • City tax. City taxes are only applicable to those who live or have earned money in New York City. This applies to individuals, trusts, estates, partnerships, S-corporations, and corporations. The city tax rate is 3.078%, 3.762%, 3,819%, and 3.876% depending on the bracket your income qualifies for.
  • Corporate tax. If you are a business owner, you are also required to pay corporate income tax. The tax rate on your corporate income ranges from 6.50% to 7.25%. These taxes generated from businesses is one of the main sources of revenue for the state of New York, and it helps to fund many of the state’s programs and services that benefit its residents.
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