Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. 

How does this differ from writing a will, you ask? While a will specifies who will get your assets after your passing, an estate plan is a larger more comprehensive plan of action regarding how those assets will be dispersed. It can apply to your life as well as your death. An estate plan also preserves legal authority in the event of incapacitation. 

Important determinations that may be specified or created during the estate planning process:

Make sure to ask for someone’s consent before naming them in legal documents like these, as the goal of estate planning is to avoid surprises.

 No matter where you are in life, trust our experienced CPAs to guide you through the complex process of getting your financial affairs in order. With a wide array of accounting, financial planning, tax planning, and consulting services, the Leadingham Rodgers Montgomery accounting firm is ready to help.

First we will conduct a thorough review of all assets in your name. This includes savings accounts, property, personal possessions, stocks, bonds, life insurance policy, and more. We leave no stone unturned!

Digital assets (like passwords to social media accounts, digital storage, cryptocurrency wallets, and other electronic records) also require a named beneficiary. Without naming a beneficiary, access to your digital assets may be lost forever.

Any assets without named beneficiaries (or “probate assets”) may be contested, which can lead to long, drawn-out, and costly legal disputes.

Once we’ve gone over your assets and named beneficiaries, you’ll need to think about how those assets are distributed. Keep in mind that a lump sum transfer of assets can be subject to significant estate and inheritance taxes from the Internal Revenue Service. With their thorough knowledge of tax law, a CPA can help you determine which of your assets are at greatest risk for taxation ahead of time. 

Furthermore, a legal trust can help you control how the assets get used by the beneficiaries. By placing assets into legal trusts, you are able to set certain conditions over the usage of those assets. You can also make sure that certain assets are mature before being sold.

By contacting a certified public accountant from our accounting firm and beginning your estate planning today, you’ll join thousands of happy clients who have laid the groundwork for the financial future of their loved ones.