What does a tax lawyer do?

What does a tax lawyer do and how does that come into play with having a will?

Simple, when a will is executed, there is a good chance that the distribution of property, be it money, a house, etc. will be result in a taxable transaction. This is where a tax lawyer comes into the picture.

A tax lawyer does one of two things traditionally. They help a tax payer who is dealing with a state government or the Internal Revenue Service over back taxes owed. They can also assist a business with the payment of their taxes.

A tax lawyer is familiar with the myriad of tax laws and codes found at the state and federal level so having a tax lawyer on hand may not be a bad idea when a legal will is executed.

What sorts of situations may involve a tax lawyer and the execution of a legal will?

- The deceased leaves a large sum of money to a relative in the final will. This may trigger a "taxable event" for the recipient. There are tax laws which allow a one time distribution up to a certain amount for the recipient which only a tax lawyer may have familiarity with.

- The deceased leaves a summer home to a charity. However, the land has mineral rights which the deceased's family wishes to keep in a trust. A tax lawyer can set up the trust and verify that the funds will indeed go to the trust.

- The deceased has made provisions for a minor in their will. The minor will receive a bulk sum of money at two dates in their life both of which will occur when they are still a minor. Will this be a taxable event for the minor's parents or caregivers?

As you can see, there are many ways a tax lawyer can be involved in the execution of a legal will. As final arrangements are made, you may want to consider the services of a tax lawyer.