CDS // Accounting // Estate Planning

Everything you own at the time of your death may be considered part of your estate, including your home, bank accounts, insurance policies, and any of your other assets. Have you ever stopped to think about what will become of all that when you're gone? Don't assume it will be distributed according to your wishes.

Sound estate planning can help preserve the financial security that you are working so hard to achieve, including the development of strategies for protecting your assets, distributing them according to your wishes, and otherwise providing for your family. With effective planning, you can minimize the tax burden on your estate and know that your beneficiaries will receive everything that the law allows. This estate and financial planning is accomplished through the following services:

Determine the size and content of your estate.
Inform you of the amount of estate taxes based on your current estate.
Recommend strategies to reduce the tax and transfer your closely held business.
Work with attorneys to ensure that legal documents reflect the goals of the estate plan.
Establish a financial plan for the purpose of providing an education for children, caring for aging parents, insuring a comfortable retirement or achieving an early retirement.

The most critical component of an effective estate plan is a properly prepared will - one that transfers your assets in accordance with your wishes. Additionally, you may consider the probate process and the possible tax liabilities of your estate. Depending on your individual situation, estate planning may entail naming guardians for your children, creating trusts, special titling of assets, and other activities.

Though most Americans are aware that they need a will, the majority of us don't have one. Writing a will protects your family and ensures that your wishes will be carried out. Anyone of legal age with any property should have a will. If you die without a will, or what is known as in testate, your estate will be distributed as determined by state law and administered by someone appointed by a court. In addition, the court will decide who will care for your minor children.

Distribute your property as you wish, including personal property of sentimental value.
Provide for future management of investments or a family business.
Designate guardians for your minor children.
Select the person you want to distribute your estate, eliminating the necessity of an expensive, court-appointed administrator.
Minimize taxes and administration expenses in the settlement of your estate.
Provide for special desires, such as charitable contributions.

Probate is the legal process of identifying and distributing your probate assets (any assets in your estate that are not transferred automatically or in trust) to the appropriate beneficiaries. If you have a will, the process includes proving that the will is valid and ensuring that assets are distributed according to its provisions. Otherwise, the probate court will oversee the distribution of your assets according to your state's intestacy laws.

The probate process can be costly and time consuming. There are many estate-planning strategies that enable you to pass property to your inheritors without probate. These strategies typically involve providing for the transfer of your assets through joint ownership, trusts, or gifts while you are alive, instead of through a will. Although avoiding probate may be beneficial in terms of time, money and privacy, bypassing probate does not eliminate or reduce estate taxes.

Federal estate taxes and state death taxes are complex and can significantly decrease what your beneficiaries ultimately receive. CDS can assist you with many of the facets of your estate plan. Have you considered the following?

If you die without a will, disposition of your property in accordance with state law might not be what you desire.
Has your plan made best use of the appropriate marital deduction to minimize taxes?
Has proper use been made of joint ownership of property? Have you considered the income and gift tax consequences of setting up, transferring or selling joint interests?
Have trusts been used to your advantage?
Have beneficiaries and ownership of life insurance policies been properly designated?
Does your estate plan provide for enough liquid assets in your estate to pay taxes?
Does your estate plan take state taxes into consideration?