Asset protection and estate tax planning for business owners and high-wealth individuals.
Do I need an estate plan?
Ask yourself, “Do I care about what I have today, and do I care about what will happen to my money and business after I die?”
If the answer is Yes, then you need one.
Estate Planning can be as simple as a will notarized by a witness. Estate planning can also be a long-term process that includes a thorough evaluation of your past records, strategic planning for your present, and meticulous preparation for your future after death.
Our CPA firm understands the unique challenges and opportunities that come with estate planning — especially for immigrants and those who do not come from generational wealth.
Evaluating the past
We evaluate the past to ensure your business structure is suitable for transitioning to the next generation after death. If any amendment taxes need to be filed, file them timely.
This step includes evaluating the business for its value in the past, establishing a baseline for your business. This baseline will be used to gift shares to your children or other heirs.
Planning for the present
There are two major options to select from, each with its own unique benefits and drawbacks.
1. Using a Trust:
- Privacy is a top priority
- Avoid probate
- Need to manage and protect various types of assets including cash, securities and personal properties
- Reduces estate taxes
- Lower on-going maintenance cost
2. Using an LLC:
- Need to manage and protect business assets or real statement investment
- Personal liability protection from business debts and legal issues
- Retain more control while enjoying tax benefits
- You have a large diverse portfolio of assists to manage
- You are looking for flexibility in tax and management structure
Preparing for your future after death
- Revocable Living Trust: Can be changed and canceled at your directive
- Irrevocable Trusts: Once you establish an irrevocable, you cannot change or modify it. It is used to create a safe haven for the placement of assets. This trust protects assets from creditors, beneficiaries, or even Medicaid
- Testamentary Trust (Will Trust): Effective at the time you die.
- Charitable Trusts: CRT (Receive income for a set of time with remaining to a charity) and CLT (Certain assists go to charity, but the rest go to your beneficiary)
- Special Needs Trusts: Provide for a special need dependent, such as a child, sibling or parent. It does this without compromising their ability to receive government benefits for their disability.
- Generation Skipping Trust: If you’d rather transfer assets to your grandchildren than your children, you can choose this trust. This trust lets you pass assets to your grandchildren, allowing your children to avoid paying estate taxes on those assets in the process. At the same time, you still have the option to allow your children access to any income that the assets generate.
Choose Community CPA for estate planning and estate tax planning
- Comprehensive Analysis: We conduct a thorough review of your financial situation, including assets, liabilities, and business interests.
- Strategic Planning: We develop a customized estate plan that aligns with your goals, minimizes taxes, and ensures a smooth transition of assets.
- Ongoing Support: Estate planning is an ongoing process. We continually monitor changes in your circumstances and financial assets, updating your estate plan as needed.
Estate planning is a complex but essential process for business owners and high-wealth individuals. By working with Community CPA, you can ensure that your estate plan is comprehensive, tax-efficient, and aligned with your long-term goals.
If you have any questions or need assistance with estate planning, please contact our firm. We are here to help you navigate the complexities of estate planning and secure your financial future.
We are proud to serve our clients from convenient office locations in Des Moines, IA; Coralville, IA; Capitola, CA; and Minneapolis, MN.
