1319 W. Baseline Rd, Suite 201 Lafayette, CO 80026 Tel: 303-530-4650 Fax: 303-530-4971 email:Brad@Online-CPA.com
Many people think estate planning is only about reducing the death taxes. There are several other very important aspects to estate planning. Even if your estate will not owe tax, for most people estate planning is still extremely important and should be implemented and monitored. Click on this link to my "Estate Planning Outline" for an article that helps explain estate planning.
Here are some reasons to do estate planning.
Name a guardian for a minor dependents Provide financial security for your family Minimize estate and income taxes Transfer property to specific heirs Simplify administration of your estate Keep the estate private and avoid probate
What Information is Needed
Estate planning can be simple or complex, depending on your situation and desires. For most people a basic estate plan is all that may be needed to gain significant benefits. In either case, it usually involves identifying the following information and instructions. Review existing wills or trust documents List of all assets, investments, debts, etc. Understand how each asset is titled Identify who should inherit your estate Describe any special needs of the heirs Name the person to manage your affairs Think about giving to certain charities How much medical treatment you want What funeral arrangements you want
There are basically three steps involved in establishing your estate plan: design, documentation, and implementation. Each step involves various activities which may require the services of a CPA, attorney, trustee, insurance agent, and investment advisor. Design involves consulting with professionals to outline your desire and goals and to gain an understanding of the extent of planning necessary.
Documentation involves an attorney to draft legal documents such as a will, trust, durable power of attorney, and medical power of attorney.
Implementation involves titling property and beneficiary designations to properly fund your plan, monitoring changes, carrying out your directions, filling requirements, and compliance.
Estate Administration Administrating an estate should start before you die by documenting what you want to happen after death or incapacitation. The following people are usually involved with the administration of an estate to carry out your directions.
A personal representative to make funeral arrangements and execute your will. A trustee(s) to direct any trusts and manage related assets. The attorney to assist the personal representative with the probate process. The CPA to prepare estate and income tax returns and provide financial advice.
There are five separate taxes that may directly impact your estate: income tax, gift tax, estate tax, generation skipping tax, and state inheritance tax.
Income tax applies to income, whether it is received by an individual, a trust, or an estate. Knowing when a trust or estate should distribute income may significantly reduce taxes. Gift tax applies to the value of a property, or rights to such property, or rights to such property, transferred while you are alive. Knowing how to use annual and lifetime exclusion amounts and valuation discounts may significantly reduce the gift and estate taxes. Estate tax applies to the value of all property in your taxable estate at the time of your death. Even basic planning may save significant amounts of Federal and State taxes. Generation skipping tax applies to the value of any property transferred to more than one generation below you. This tax is in addition to the estate tax. State estate or inheritance tax applies to the residents of those states that tax the estate of the heirs on the value of the property transferred at death.
Family dynamics and estate tax laws are always changing, we can help you keep up.
Helping you keep more of what you make!
Planning is the key to organizing your affairs, saving money, and achieving financial security. The services offered by the firm of Brad Borncamp, CPA, LLC can help identify and implement estate planning strategies to:
Reduce estate, gift, and income taxes Provide for an orderly transfer of assets Assign guardians for minor children Learn how to use life insurance Understand complicated probate rules Carry out your wishes and desires Know how titles affect estate transfers Help with administration of your estate Learn how to use a will, trust, POA, etc. Help protect family members from creditors Keep more of your assets in the family Provide for special needs of dependents Manage the assets in your estate
The firm of Brad Borncamp, CPA, LLC provides fee based services, including accounting, tax planning and preparation, and estate, gift, and financial planning. We work with each client to identify and implement planning strategies that help to achieve their goals. We do not sell insurance, investments, or any other commissioned products.
Brad Borncamp, CPA, CVA, CFP has the experience to help with your tax, financial, and estate planning. Dont delay, start today