How Does My Estate Plan Impact the Financial Planning Process?

Estate planning and financial planning are connected. Decisions that you make for one will certainly impact the other. This is most applicable for decisions made over the course of your life, such as your decision over what to do with your retirement plan.

Setting retirement goals with the help of your financial professional is very valuable for helping you look forward to the point in time that you exit the workforce either entirely or from your primary position.

However, your retirement plan is also a very valuable asset in the estate planning picture. Your estate planning attorney can tell you more about naming a beneficiary to receive these assets if and when something happens to you. It is not as simple as deciding which person should be able to receive these assets and recording that in your will either.

Many retirement accounts pass outside of the probate process and forms must be filed specifically with the manager of the retirement account to ensure its streamlined asset transfer. Furthermore, depending on the age of your recipients and the type of retirement plan, there may also be tax considerations or account emptying considerations to walk through. Hiring an experienced and qualified estate planning lawyer is the best way to address these concerns.

ย What Role Does an Accountant Play in Estate Planning?

One of the most important components of your estate plan is the decision you make about which estate planning lawyer to work with. You may already recognize the value in involving a team of professionals to help you in the estate planning process, since this considers issues during the course of your life, as well as those issues that may apply after you pass away.

Your CPA, financial advisor and estate planning attorney may all be familiar with various aspects of your plan and can help tell you more about what to consider going forward in the future. A CPA’s professional knowledge of taxes is very beneficial in helping provide input on an estate plan that suits your needs. Your CPA may also help you with things like gift tax returns, estate returns or tax preparation for 1040 and 1041 forms.

When Should I Involve a CPA?

When you create a comprehensive estate plan, it may be wise to involve a CPA in this process so that you are clear on the tax implications of every decision you make. This is also key for when thinking about making gifts to loved ones in your family, either during your life or after you pass away. Those individuals may also face tax consequences, and this can be very beneficial for making decisions about the most appropriate way to pass things on in the future.

Need help finding others to help you with your estate plan? Contact our office now.


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