Estate Tax Planning CPA Columbus Ohio
Plan your family's legacy and pass on assets tax efficiently
Estate tax planning services
Estate planning enables you to safeguard the future of your loved ones. It goes beyond asset distribution, ensuring that your family is protected, financially secure, and equipped to handle any challenges that may arise. By carefully planning and documenting your wishes, you can minimize potential conflicts and legal complexities, providing your family with peace of mind during difficult times.
Our role in estate planning is to help you understand the tax liabilities and take control of your financial future to leave a lasting legacy for your love ones.
Why Hire An Accountant Specializing in Estates to help your Estate Planning Team?
We possess extensive knowledge of tax laws and regulations. We can help minimize estate taxes, income taxes, and capital gains taxes, maximizing the wealth passed down to your beneficiaries.
2. Financial Analysis
We can analyze your financial situation, including assets, investments, and debts, to provide a clear picture of your estate’s value. This assessment helps in determining the most effective strategies for asset protection, wealth preservation, and distribution.
3. Strategic Planning
We can collaborate with your legal and financial advisors to develop a strategic estate plan that aligns with your goals. We can assist in structuring trusts, giving strategies, and exploring options for business succession planning.
4. Compliance and Documentation
We ensure compliance with complex financial reporting requirements, such as filing estate tax returns and maintaining accurate financial records. Our expertise helps navigate intricate legal and regulatory frameworks, reducing the risk of errors or penalties.
5. Objective Perspective
We offer an unbiased viewpoint, considering financial implications without emotional attachments. We can provide objective advice to help you make informed decisions regarding asset distribution, charitable giving, and other financial matters.
We Can Help You Through Life-changing Events That Can Impact Your Estate Plan
Older individuals may experience one of several life events that can trigger the need for a review and potential update of their estate plan.Declining Health: If a senior experiences a decline in health or receives a serious medical diagnosis, it’s important to review their estate plan to ensure it reflects their current healthcare wishes, designates a healthcare proxy or power of attorney, and includes any necessary provisions for long-term care or medical decisions.
- Change in Marital Status: A senior’s marital status may change due to marriage, divorce, or the death of a spouse. These events can impact beneficiary designations, property ownership, and distribution preferences, making it essential to update the estate plan accordingly.
- Financial Changes: Significant changes in financial circumstances, such as retirement, receipt of a large inheritance, or the sale of a business, may warrant a review of the estate plan. Adjustments may be needed to address retirement income, tax planning, asset protection, and the distribution of assets to align with the senior’s current financial goals.
- Loss of a Spouse or Beneficiary: The passing of a spouse or designated beneficiary may require revisions to the estate plan. This involves reviewing beneficiary designations, updating distribution preferences, and potentially considering new beneficiaries or charitable organizations.
- Changes in Family Dynamics: Changes in family relationships, such as estrangement, divorce, or the birth of additional children or grandchildren, can impact the estate plan. It may be necessary to review and revise beneficiary designations, appoint new guardians or trustees, or modify inheritance arrangements.
- Updates to Tax Laws: Changes in tax laws, including estate tax, gift tax, and income tax regulations, can have implications for a senior’s estate plan. Reviewing the plan with a qualified tax professional can help ensure that it remains compliant with the current tax laws and takes advantage of any available exemptions or deductions.
We can help you minimize your taxes
At our company, we understand the importance of effective succession planning and the desire to minimize estate taxes. With our team of experienced professionals well-versed in estate planning and tax strategies, we can provide you with expert guidance and personalized solutions to help you navigate the complexities of reducing your estate taxes.
By conducting a thorough analysis of your unique circumstances and goals, we can develop a comprehensive strategy that encompasses various techniques such as family limited partnerships, lifetime gifting, trusts, and charitable giving.
With our in-depth knowledge and commitment to staying up-to-date with the latest tax laws, we are equipped to assist you in implementing a robust succession plan that minimizes tax liabilities and ensures a smooth transfer of wealth to future generations. Below are some strategies to minimize your estate taxes:
Family Limited Partnership (FLP) or Family Limited Liability Company (LLC)
These structures allow you to transfer assets to future generations while retaining control and minimizing estate taxes. By gifting limited partnership or membership interests, you can take advantage of valuation discounts and reduce the taxable value of the assets transferred.
Gifting assets during your lifetime can help reduce the size of your taxable estate. The annual gift tax exclusion allows you to gift a certain amount per year to each individual without incurring gift tax. Additionally, you can take advantage of the lifetime gift tax exemption, which allows you to make larger tax-free gifts over your lifetime (subject to certain limits).
Grantor Retained Annuity Trust (GRAT)
A GRAT is an irrevocable trust that allows you to transfer assets to beneficiaries while retaining an annuity payment for a specified term. If the value of the assets in the trust appreciates at a rate higher than the IRS hurdle rate, the excess appreciation passes to the beneficiaries without incurring gift or estate taxes.
Irrevocable Life Insurance Trust (ILIT)
Placing life insurance policies in an ILIT can help exclude the death benefit from your taxable estate. The trust owns the policy, and the proceeds are distributed to the beneficiaries tax-free, providing liquidity to cover potential estate tax liabilities.
Donating assets to charitable organizations can provide income and estate tax benefits. Establishing charitable remainder trusts, charitable lead trusts, or donor-advised funds can help reduce taxes while supporting causes you care about.
Succession planning through business structures
If you own a business, exploring options like family limited partnerships, buy-sell agreements, or employee stock ownership plans (ESOPs) can help facilitate the transfer of ownership while minimizing taxes.
Estate and Probate Tax CPA Service Inclusions
Hogan CPA Financial Services can help you and your family figure out the best course of action to help minimize taxes and maximize your legacy.
- Conduct a thorough review of existing assets, wills, trust instruments
- Identify and understand the specific wealth preservation objectives and needs of the family.
- Estimate estate taxes based on the current estate plans.
- Evaluate privately held businesses, alternative estate tax payment methods, and strategies for transferring or disposing of business interests.
- Develop tailored plans for assets with unique estate tax attributes, such as retirement plans and life insurance policies.
- Identify potential liquidity issues arising from estate taxes, generation-skipping transfer tax, debts, cash, family business operation costs, probate, and administration expenses.
- Explore alternative strategies to the current estate plans, considering potential tax savings.
- We provide guidance and referrals for estate planning financial advisors or attorneys that can help create legal entities like family limited partnerships, limited liability companies, or charitable trusts.
- We help facilitate effective communication and discussions with family members to ensure mutual understanding and commitment to the estate plan.
- Prepare federal estate tax returns.
- Prepare estate and trust income tax returns.
- Provide postmortem tax planning assistance.
- Offer guidance and tax support to surviving spouses and other heirs.
How we help senior, trust, & estate planning CPA
Let us help you strategize for taxes and free up your time by taking repetitive tasks like bookkeeping off your plate.
What our senior, trust, & estate planning CPA clients are saying
Senior, Trust, & Estate Planning CPA
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See our Frequently Asked Questions below for commonly asked questions about our estate planning CPA services.
Senior, Trust, & Estate Planning CPA FAQs
Estate tax planning is relevant for individuals with substantial assets, as estate taxes may apply to estates that exceed certain exemption thresholds. It is also beneficial for those who want to ensure the smooth transfer of assets, minimize tax liabilities, and protect their wealth for future generations.
The federal estate tax exemption as of 2023 is $12.92 million per individual or $25.84 million for a married couple. However, it’s important to note that exemption amounts can change, and state-level estate taxes may have different thresholds.
Estate tax planning employs various strategies such as gifting, creating trusts, charitable contributions, and leveraging exemptions to minimize estate tax burdens. These strategies can help transfer assets while maximizing available deductions and exemptions, thereby reducing the taxable estate.
As a CPA, we focus on the tax part of the estate. Estate planning as a whole encompasses organizing and structuring assets, guardianship for minors, planning for incapacity, protecting assets, business succession, and more.
It is advisable to start estate tax planning as early as possible. The reality is, anyone can get into a life-changing car accident tomorrow and their family would have their lives turned upside down.
Life events like kids being born, changes in tax laws, and financial circumstances can impact your estate plan. Starting early allows you to implement strategies gradually, making adjustments over time, and ensuring your plan reflects your evolving goals and needs.
While it’s possible to educate yourself about estate tax planning, consulting with an experienced estate planning attorney, CPA, and/or financial advisor is highly recommended. Each professional has different specializations and can provide guidance to help you navigate complex tax laws, customize strategies to your specific situation, and ensure compliance with legal requirements.
Key documents for estate tax planning include wills, trusts, powers of attorney, healthcare directives, and beneficiary designations. These documents help dictate the distribution of assets, appoint guardians, and provide instructions for end-of-life decisions.
Yes, estate tax planning can incorporate asset protection strategies to safeguard your wealth from potential risks such as lawsuits, creditors, and excessive taxation. Techniques like irrevocable trusts, family partnerships, and insurance policies can provide tax and asset protection benefits.
While estate tax planning is particularly important for high net worth individuals, it can also benefit individuals with more modest estates. Proper planning ensures assets are distributed according to your wishes, minimizes expenses and conflicts, and maximizes the legacy you leave behind.