Long Island estate planning attorney Seth Schlessel (https://www.schlessellaw.com/5-ways-to-avoid-estate-taxes/) outlines effective legal strategies that can significantly reduce or eliminate estate tax liabilities in his article, “5 Ways to Avoid Estate Taxes.” Estate taxes often represent a significant financial burden for high-net-worth individuals. Seth Schlessel, an attorney at Schlessel Law PLLC, discusses how proper planning can protect assets and maximize the inheritance left to beneficiaries.
In New York, individuals must contend with both federal and state estate tax laws. While the federal exemption has increased to $13.99 million per individual in 2025, the New York estate tax exemption is capped at $7.16 million. Long Island estate planning attorney Seth Schlessel explains that New York’s unique “cliff” rule can result in the entire estate being taxed if it exceeds the exemption threshold by more than five percent. This creates an urgency for individuals with sizable estates to act strategically.
To avoid these consequences, consulting a Long Island estate planning attorney is essential. Seth Schlessel highlights several strategies in his article, such as gifting assets, charitable giving, and creating specific types of trusts. These tactics aim to bring the taxable value of an estate below the exemption threshold or exclude certain assets from estate tax calculation altogether. Schlessel Law PLLC works with clients to explore these options and develop tailored estate plans.
One primary strategy discussed involves annual gifting, which can help reduce an estate’s value without incurring taxes. Under current New York laws, individuals can gift up to $19,000 per recipient each year. There is no limit on the number of recipients, allowing individuals to significantly decrease their estate size over time. In the article, Seth Schlessel emphasizes, “Gifting your assets is a good way to reduce the value of your estate to below the exemption threshold.”
Another effective approach involves making direct payments for medical and educational expenses on behalf of loved ones. These payments, when made directly to service providers, are excluded from federal gift tax rules. This allows individuals to support their family members while reducing the taxable value of their estate. The exclusion does not apply if the funds are given to recipients to pay themselves, making direct payment critical.
Donating to charities through vehicles such as Charitable Lead Trusts (CLTs) or Charitable Remainder Trusts (CRTs) is also discussed. These methods allow for philanthropic contributions while reducing estate taxes. A CLT provides immediate tax advantages and ensures that remaining assets pass to heirs after a period of time. A CRT allows the donor to receive income from the trust during their lifetime, with the remainder going to charity upon death.
Long Island estate planning attorney Seth Schlessel also highlights the use of irrevocable life insurance trusts (ILITs) to remove life insurance proceeds from the taxable estate. This approach must be implemented well before death to be effective. Establishing family limited partnerships and qualified personal residence trusts are also covered. These tools allow for the transfer of appreciating assets while minimizing tax consequences and retaining control during the donor’s lifetime.
A lesser-known strategy involves the use of an Alternate Valuation Date (AVD). If asset values decrease significantly in the six months following a death, executors may opt to use this alternate date for tax calculation purposes. This can result in a lower overall estate value and reduce taxes owed. However, the election must be applied consistently across all assets, and careful evaluation is necessary to determine whether it benefits the estate.
In all cases, the best option to reduce estate taxes depends on the specific financial circumstances involved. Long Island estate planning attorney Seth Schlessel encourages thoughtful planning and consultation. At Schlessel Law PLLC, tailored legal solutions are available to help clients minimize tax burdens and pass more wealth to future generations.
Proper estate planning helps protect beneficiaries from unnecessary financial losses. Working with an attorney who understands both federal and New York state laws is essential when considering how to reduce estate tax liability. The wrong move can result in significant costs, so strategies must be carefully selected and executed well in advance.
Seth Schlessel of Schlessel Law PLLC continues to guide Long Island families through the estate planning process with the aim of preserving wealth and avoiding costly taxation. With changing exemption thresholds and evolving tax codes, staying informed and acting early remains crucial. Legal guidance can provide peace of mind and security when planning for the future.
For individuals concerned about the impact of estate taxes on their legacy, scheduling a consultation with Long Island estate planning attorney Seth Schlessel is a practical first step. At Schlessel Law PLLC, estate plans are built to address personal goals while navigating the nuances of state and federal tax laws.
About Schlessel Law PLLC
Schlessel Law PLLC provides legal services in estate planning, elder law, and asset protection. Based in Long Island, the firm offers customized legal guidance to help clients preserve their wealth and navigate New York’s estate laws. Attorney Seth Schlessel works with individuals and families to create estate plans that align with their long-term financial goals.
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