Cleveland Federal Estate Tax Attorney

Federal Estate Tax Legal Services for Cuyahoga County, Lake County, & Lorain County

The federal estate tax represents a significant financial risk for high-net-worth individuals and families in Northeast Ohio. While most estates fall below the filing threshold, those with substantial real estate holdings, business interests, or accumulated wealth must take proactive steps to protect assets for future generations. Navigating the intricate provisions of the Internal Revenue Code governing transfer taxes requires precision and strategy to achieve compliance while minimizing exposure.

At Law Offices of Daniel McGowan, LLC, we work closely with clients and their financial advisors to structure estates that anticipate changes in exemption levels. Our approach focuses on creating strategies that align with the complex requirements of the Internal Revenue Code while reducing exposure to federal estate tax. We provide the technical guidance needed to fight for available benefits and implement transfers that comply with IRS regulations, helping families preserve wealth and avoid unnecessary tax burdens.

Call (216) 616-7592 or contact us online to speak with a federal estate tax attorney about safeguarding your assets and managing necessary tax filings.

Portability & IRS Form 706 Compliance

"Portability" allows a surviving spouse to utilize the "deceased spousal unused exclusion" (DSUE) amount, effectively doubling the estate tax exemption available to the survivor. However, this benefit is not automatic. It requires the timely filing of IRS Form 706 for the estate of a deceased spouse, even if no tax is currently due.

We prepare and file Form 706 for estates in Cuyahoga, Lake, and Lorain Counties to secure this valuable tax asset. Failing to make this election within the statutory timeframes (nine months from date of death, with a possible six-month extension) can result in the permanent loss of the portable exemption, potentially costing the family millions in future taxes. 

At Law Offices of Daniel McGowan, LLC, we manage the preparation of returns, including the coordination of qualified appraisals for hard-to-value assets such as closely held business interests or commercial real estate.

Strategic Use of Irrevocable Life Insurance Trusts (ILITs)

Life insurance proceeds are often the asset that unexpectedly pushes an estate over the federal tax threshold. While life insurance death benefits are generally income tax-free, they are included in your "gross estate" for federal estate tax purposes if you own the policy. We design and implement Irrevocable Life Insurance Trusts (ILITs) to solve this problem.

By transferring ownership of the policy to an ILIT, the death benefit is removed from your taxable estate. This strategy provides a source of liquid cash to pay estate taxes or other debts without diminishing the inheritance left to beneficiaries. We guide clients through the strict administrative rules required to maintain an ILIT, including the issuance of "Crummey notices" to beneficiaries to qualify premium payments for the annual gift tax exclusion.

Advanced Wealth Transfer Strategies

For estates that exceed the combined exemption amounts, we deploy advanced strategies to leverage valuation discounts and freeze asset values. This includes the formation of Family Limited Partnerships (FLPs) or Limited Liability Companies (LLCs), which allow for the transfer of non-controlling interests to younger generations at a discounted value for gift tax purposes.

We also structure Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs) for clients with philanthropic intent. These split-interest trusts allow donors to benefit charitable organizations while receiving income tax deductions and reducing taxable estate value. Our role involves drafting the trust instruments, advising on trustee selection, and adhering to rigorous IRS administration rules to prevent disqualification.

To discuss wealth preservation strategies and filing requirements, call (216) 616-7592 or contact us online to schedule a consultation with a federal estate tax lawyer.