Berks County Estate & Gift Tax Lawyers

Assisting Clients With Estate & Gift Tax Matters in Pennsylvania

With over 30 years of experience and a commitment to open communication, Dorko Wealth & Estate Planning is dedicated to providing client-focused representation. As a family-run firm, we understand the importance of protecting your family's interests. Jeff Dorko, with his extensive education and expertise, including a J.D., MBA, and a Masters in Taxation, offers the knowledge and experience needed to provide you with optimal and strategic results. We believe in cutting through legal jargon to ensure our clients fully understand their estate and gift tax matters. Your peace of mind and financial well-being are our top priorities.

What Is Estate Tax?

Estate tax is a federal and, in some cases, state tax that applies when an individual passes away and their estate's total value surpasses a predetermined exclusion limit. This tax is computed based on the fair market value of the assets within the estate, not their initial purchase price. It's important to note that the specific regulations and rates can vary depending on the state in which the deceased person resided at the time of their death.

What Is Gift Tax?

Gift tax is a federal tax imposed on individuals by the Internal Revenue Service (IRS) when they transfer property or assets to someone else without receiving something of substantial value in return. These gifts can take various forms, such as cash, real estate, or other property. The IRS sets specific limits on the amount you can gift to someone annually without incurring gift tax. Any gifts exceeding this limit must be reported and will affect your lifetime gift tax exemption. Once this exemption is surpassed, the gift tax becomes payable. Importantly, the gift tax can apply even if your intent was not to make a gift, highlighting the importance of understanding the tax implications when transferring assets to others.

An attorney specializing in estate and gift taxes can provide valuable assistance in several ways:

• Estate Planning: We can help individuals plan their estates to minimize tax liabilities. This involves creating wills, trusts, and other legal instruments to ensure the smooth transfer of assets while considering tax implications.
• Gift Tax Planning: We can advise on gift tax strategies, helping clients make gifts while minimizing the impact of gift taxes. This may involve utilizing exemptions, such as the annual gift tax exclusion, and structuring gifts tax-efficiently.
• Tax Compliance: Estate and gift tax laws are complex and subject to change. We can ensure that clients comply with current tax regulations, file the necessary forms, and meet deadlines to avoid penalties.
• Valuation of Assets: Determining the value of assets is crucial for estate and gift tax calculations. We can assist in accurately valuing different types of assets and navigating valuation challenges to optimize tax outcomes.
• Probate and Administration: In the event of a person's passing, attorneys can guide the executor or administrator through the probate process, ensuring that the estate is settled efficiently and by tax laws.
• Dispute Resolution: If estate or gift tax matters arise, attorneys can represent clients in negotiations or legal proceedings to resolve conflicts and protect their interests.
• Tax Audits and Appeals: If a client faces an audit or appeal related to estate or gift taxes, we can provide representation, presenting the necessary documentation and arguments to support the client's position.
• Charitable Giving: We can advise on tax-efficient charitable giving strategies, helping clients support charitable causes while maximizing tax benefits.

Frequently Asked Questions (FAQ) About Estate and Gift Taxes

• What is the difference between estate tax and inheritance tax?
  • Estate tax is imposed on the overall value of a deceased person’s estate before it is distributed to heirs. The federal government imposes estate tax on estates that exceed a certain exemption limit.
  • Inheritance tax, however, is levied on the value of the assets inherited by beneficiaries, and the rate often depends on the beneficiary's relationship to the deceased. Pennsylvania imposes an inheritance tax, which is separate from the federal estate tax.
• Do I have to pay estate taxes on assets received as a beneficiary?
  It depends on the size of the estate and the state laws. If the estate exceeds the estate tax exemption limit (federal or state), beneficiaries may be required to pay taxes. However, assets passed to spouses and sometimes children may be exempt from estate tax, depending on the state's laws.
• Can I gift assets to reduce my estate tax liability?
  Yes, gifting assets during your lifetime is one strategy to reduce estate tax liability. The annual gift tax exclusion allows you to give a certain amount each year without incurring gift tax. As of 2025, this is $17,000 per recipient. Larger gifts may reduce the size of your estate and potentially lower estate tax obligations.
• What is the lifetime gift tax exemption?
  The lifetime gift tax exemption is the total amount you can gift throughout your lifetime before incurring gift tax. It is tied to the federal estate tax exemption and is currently $12.92 million per individual as of 2025. Gifts exceeding the annual exclusion amount will count against this lifetime exemption.
• Are there any estate planning strategies to avoid paying estate taxes?
  Yes, several strategies can help reduce or eliminate estate taxes, including:
  • Establishing trusts (e.g., irrevocable trusts) to remove assets from your taxable estate.
  • Making charitable donations that are tax-deductible, reducing the estate’s value.
  • Gifting assets during your lifetime to use the annual exclusion and lifetime exemption.
  • Taking advantage of tax deductions such as debts, funeral expenses, and administrative costs to lower the taxable estate value.
• Can estate and gift tax laws change over time?
  Yes, tax laws can change due to legislative adjustments. Exemption limits, tax rates, and other regulations are subject to change based on federal and state legislation. It’s important to regularly review your estate plan and consult with an estate attorney to ensure your plan remains up-to-date with current laws.
• How can I plan for both state and federal estate taxes?
  It’s essential to work with an estate planner who understands both federal and state estate tax laws. Strategies like utilizing both state and federal exemptions, gifting, and creating trusts can be effective for managing estate taxes across different jurisdictions.

Schedule a Consultation with Our Berks County Tax Attorneys

Look no further if you're seeking expert guidance on estate and gift tax matters. Our Berks County estate and gift tax lawyers are committed to providing comprehensive and personalized assistance to navigate the complexities of tax law. Whether you're planning your estate, managing a gift tax situation, or dealing with related legal matters, we are here to offer knowledgeable insights and strategic solutions. Contact us today to schedule a consultation and ensure your financial issues are in capable hands. Your peace of mind is our priority.

Have questions? Speak with a seasoned Berks County estate & gift tax lawyer at Dorko Wealth & Estate Planning. Dial (610) 957-0018 or reach out online.