Certified public accountants (CPAs) act as advisors to individuals, businesses, financial
institutions, nonprofit organizations and government agencies. They are distinguished from other
accountants by stringent educational, experience and licensing requirements.
Estate and financial planning can best be done by a team of professionals who work together.
A CPA is a key player on the estate planning team, along with a lawyer, a bank trust officer, an
insurance agent and an investment advisor. CPAs have knowledge of the tax implications of
decisions you make in structuring your estate. They can help assure that you meet your estate
planning goals of minimizing the taxes and maximizing the portion of your estate that passes to
your heirs.
Preserving financial security
Today's unstable dollar and widely fluctuating markets have made accumulating, preserving and
disposing of wealth more difficult than ever before.
Sound financial and estate planning can help preserve the financial security that you are working
so hard to achieve. It's important to plan for the disposition of property during your lifetime and
upon your death. With effective planning, you can minimize the tax burden on your estate and
know that your beneficiaries will receive everything that the law allows. The importance of
estate planning An essential part of lifetime planning is making sure that only appropriate assets
pass to the survivors. Certain businesses and investments may be impractical or impossible for
a grieving family to manage. A CPA can assist you in putting your affairs in order in the most
effective way to provide for loved ones and friends.
Effective financial planning is essential. An estate you consider of modest value today may well
become very sizable when measured in inflated market values at the time of your death.
Tax considerations
CPAs can assist you with many of the facets of your estate plan. Consider the following.
Do you know that if you die without a will, disposition of your property in accordance with
state law might not be what you desire?
Does your plan reflect your current marital status?
Has proper use been made of joint ownership of property?
Have you considered the income and gift-tax consequences of setting up, transferring or selling
joint interests?
Have trusts been used to your advantage?
Have beneficiaries and ownership of life insurance policies been properly designated?
Does your estate plan provide for enough liquid assets in your estate to pay estate taxes?
Does your estate plan take state taxes into consideration?
Gift giving
Estate and gift taxes are imposed on the current value of property. You can save taxes by
making a current gift of some of your property if the property given is likely to appreciate
substantially in the future. If you have a number of beneficiaries in mind, a gift-giving program
using the annual gift-tax exclusion can help minimize taxes on a substantial portion of your
estate.
Other services
The CPA's role in estate planning does not necessarily end at the client's death. There are the
deceased person's final income tax return, the estate tax return and the income tax return of the
estate to prepare. CPAs may be involved in the estate valuation process and work with the
executor and attorney on the many opportunities for tax savings following the date of death.
Again, the goal is to maximize the portion of your estate that passes on to your heirs.
CPAs also may become involved in IRS audits and in the administration and tax planning of the
estate.
The estate planning team
Estate and financial planning require specialized knowledge in many areas. Because of the
CPA's close relationship with clients in personal financial affairs and in personal income taxes, a
CPA can make a vital contribution to the overall direction and coordination of the entire
financial and estate planning team.
That team of professionals can develop a strategy to conserve, increase and, ultimately, pass
on your estate with maximum tax savings. Start the team effort by contacting a CPA.
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