Preparing for the future is the only way to ensure your loved ones will continue to be taken care of even after you’re gone. While an attorney can assist with the initial setup of estates and trusts, it’s important not to overlook the important role a CPA plays in estate planning. They’ll provide a thorough analysis of your financial situation and suggest effective strategies for reaching your goals. Below is some further insight into how these professionals help facilitate a smooth transfer of wealth and assets.

Why You Need a CPA for Estate Planning 

What Is Estate Planning & Administration? 

Estate planning involves designating beneficiaries and outlining instructions for how you want your assets to be distributed upon your death. Comprehensive estate plans are made up of a variety of legal documents that typically include a will, trust, power of attorney, and advanced healthcare directive.

Estate administration occurs after you pass away. This is the process of wrapping up your affairs and making sure your final wishes are carried out. It’s handled by someone you’ve appointed to be the executor of your estate. 

How Can a CPA Help?

Estate and trust planning can be quite complex, especially when figuring out ways to make sure your assets are distributed efficiently. It’s essential to consider this carefully, as it can have a major effect on your estate tax liability.

Thus, you need a CPA who understands taxes and knows how to effectively minimize your liability. They can help you properly establish and fund several different types of trusts to prevent a large portion of your wealth from going to estate taxes, as well as advise you on business succession planning and charitable giving.

Why They’re a Better Choice for Executor of an Estate

As a trusted adviser, your CPA will already know the private details of your estate plan, making them a good choice for an executor. Though many people automatically name a close friend or family member, it’s likely they won’t have the same level of skill and knowledge a CPA has when it comes to estate and trust planning.

Choosing a neutral party can also help eliminate family disputes that often arise during the administration process. These professionals will distribute your assets fairly according to your wishes, decreasing tension within the family. 

If you’re ready to start estate planning, reach out to Dianne M. Saunders, CPA in Litchfield, CT, for help. Offering more than 25 years of experience with estates and trusts, she’ll assist you in designing a plan that allows for a seamless distribution of assets and provides your family peace of mind. She understands that every situation is different and will take the time to get to know you and your needs. Call (860) 567-3022 to schedule an appointment or visit her online to learn more about her services.