3 More Reasons You Need an Estate Plan

Earlier this month, we posted blogs that discussed some of the tax benefits of having an estate plan—but there are lots of other ways you can benefit. For this blog post, we wanted to highlight 3 other reasons you should talk to your CPA about how to set one up.

An estate plan can help you designate someone who can make financial decisions on your behalf

An estate plan can help protect your finances if you become incapacitated (or are otherwise unavailable to make financial decisions for yourself and/or your business.)  When you add a durable financial power of attorney (POA) to your estate plan, the POA will authorize someone to make financial decisions on your behalf should you become mentally incompetent or temporarily (or permanently) incapacitated.  For example, if John Smith is in a car accident and as a result, he spends 3 weeks in a coma, his durable financial POA will outline who is authorized to handle his financial affairs, such as managing his investments, bank accounts, and filing his tax returns, until when and if he recovers.

An estate plan can help maximize the value of what you leave to your beneficiaries

Estate planning can help protect your assets, which is one of the many reasons why many people are turning to their CPA for advice. When you meet with a CPA, they can not only explain how an estate plan can help minimize taxes on the portion of your estate that you’ll be leaving to your beneficiaries, they can help you understand your estate’s future expectations. In some instances, a modestly valued estate in 2020, could be worth significantly more at the time you die.

An estate plan can help fund your philanthropic goals

If you have questions about legacy planning (namely, how you can establish a plan to ensure your philanthropic intentions are carried out after your die), your CPA can help.  A Certified Public Accountant will be able to advise you on how to create a family foundation, how to craft your estate plan to ensure your participation in a donor-advised fund that supports causes or issues that are important to you, and/or how to establish a charitable trust.

Have questions? Call Hughes, Snell and Co., PA today

For more information on the financial benefits of estate planning, call Hughes, Snell and Co., PA today to schedule a free, no-cost consultation. Call us today at 239-939-2233 to get started.