If you read our last blog and you’re interested in learning more about how to set up a financial estate plan, you may have questions about how to get started.
To recap, an estate plan provides binding instructions as to how a person’s assets will be distributed in the event of their death or incapacitation. For example, if someone were to fall into a coma, an estate plan would designate who is charged with making their financial decisions while they’re unable to make those decisions on their own. In the event of death, the estate plan would stipulate to whom assets are distributed, and what the inheritance can be spent on.
Someone who has 2 adult children and 4 grandchildren could stipulate that each heir would receive $X dollars, and that the adult children could only use the money toward the purchase of a home, and that the grandchildren would each be allocated $Y, at $Z per year, to use toward college tuition.
The value in this, is to give you the peace of mind that comes with knowing your heirs’ inheritance will be spent according to your wishes.
How It Works
Although most people think that CPAs only help provide advice to individuals, businesses and corporations, a CPA can also provide valuable estate planning advice. For example, a CPA can help you understand how taxes might apply to your estate, and the financial implications of how your plan is set up.
They can also provide you with guidance as to the types of things that will minimize taxation, and thus, maximize the value of the assets that are passed down to your heirs.
A CPA can also help provide you with reasonable expectations for your estate in the future, because they can use their knowledge to help you understand which assets are likely to appreciate (or depreciate). You may be surprised to learn that a modestly valued estate in 2020 could be worth significantly more at the time of your death.
Call Hughes Snell & Co. Today
If you’d like to learn more about the benefits of setting up an estate plan, call Hughes Snell & Co. today. We’re happy to discuss tax benefits and ramifications, the advantages of including a revocable living trust, and the steps you’ll need to take to ensure your estate avoids probate.
Each member of our team is committed to your success, and we work with each client to ensure their financial planning goals are met. For more information or to set up a free consultation, call our office today to get started.
