Estate Planning and Accounting
Estate planning can be a very trying and emotionally exhausting experience. It’s not a pleasant thing to think about, what will happen after you’re gone, but it is incredibly necessary. Leaving your affairs in disarray can significantly complicate matters for your loved ones. It is difficult enough to process the grief of losing a loved one, but to muddy the waters further by not having planned your estate distribution is a completely avoidable problem. Salem CPA is a proven service provider and consultant for estate planning services. We can absolutely help you to come up with a plan for what happens to your wealth after you’re gone. Keep reading below to learn more about exactly how we go about that.
Estates, What Exactly Are They?
An estate is often times thought of as just a home or a residential structure. An estate is much, much more than just physical properties and land. It is a person’s entire net worth, whether that person is alive or not. It can vary from a house, to a rare baseball card, to digital currency or to specific legal or stakeholder rights. The definition is broad, because it encompasses everything that you can legally transfer to another person. As you can probably imagine, that list is incredibly long for most people, and the process of managing it is extremely involved.
How Do You “Plan” An Estate?
Estate planning is more than just figuring out who gets what after you’re gone. Salem CPA will help you avoid major tax pitfalls that can be encountered when transferring wealth from one person to another. We will maximize the value of your estate by guiding you around the various issues that can arise with estate distribution. There are taxes on everything in this day and age, and not even estate payouts are exempt from them. You might think that since it is your money and they are your items, that you’ve either already been taxed on, or bought with post-tax money, you wouldn’t be taxed on them again. Well, unfortunately, that isn’t the case. Don’t worry though, Salem CPA is here to be your sherpa in these financial mountains.
What Is A Beneficiary?
A beneficiary is a person or organization that you bequeath your wealth to, in the event of your passing. Having beneficiaries designated can ensure that there are no questions about how your wealth should be distributed after you’re gone. Beneficiaries can be charitable organizations, companies, trust funds, children, family members or even friends. Generally speaking, whenever you designate a beneficiary, you need to also provide adequate identifying information for that person. That information may include their social security number, so when you’re picking a beneficiary, make sure to have that information readily available. While you aren’t obligated, it is also a good idea to notify the beneficiary of any entitlements that they may receive. If you need any assistance at all setting up a beneficiary for your estate, Salem CPA is always glad to help!