Estate planning used to focus primarily on what happens to a person’s assets after they pass. Not anymore. These days, it has more to do with how wealth is managed while the owner is alive. Gone are the days when you could just pass your business down to your children or a trusted family member. Now, you need to make sure your finances are healthy and that your business is changing with the times.
Additionally, you need to make plans to ensure that the business you leave behind is profitable and will remain so in the future. To achieve all these, you need accomplished estate planning CPAs. For nearly four decades, CG Tax, Audit & Advisory has been helping businesses and business owners reach their financial goals and plan for their retirements.
Furthermore, estate tax laws are very complicated (with numerous clauses and injunctions), and they are constantly evolving. When tax laws change, best practices that worked in the past become outdated. To stay on top of these changes, you need tax accountants with expertise and experience in complex planning and maneuvering the ever-changing estate tax field. Why is an estate planning CPA critical to the growth of your business?
Estate Tax Laws Change Constantly
The New Tax Cuts and Jobs Act (TCJA) comes with a number of changes to estate taxes. For one, the gift and estate tax exemption have been doubled to $11.2 million for 2018. What this means is that many taxpayers no longer need to pay gift and estate taxes (at least until 2026 when the law is reversed). Therefore, current estate plans have to be revised. Spouses that funded trusts upon their partner’s death in a bid to preserve estate tax exemption and defer estate tax now need to review their plans. They need new estate plans; ones that work better with the new laws. If you are one of such people, you need an estate planning accountant quickly.
Legislative changes like these are commonplace in the US and as a business owner, you definitely have a lot more on your plate than tracking how estate tax laws are evolving and how they affect your estate planning. Even if you have the time to track these changes, you may not have the expertise to devise new strategies that will complement them. You need the services of a professional CPA team with expertise in estate planning.
It is the goal of every business owner to create legacies that last for generations. Most times, the difference between a generational business and those that die with the founder is a good business succession strategy. Do not repeat the mistakes of founders that put their succession planning until they were too old or about to hand over their businesses.
By working with an estate planning CPA years before your retirement, you give yourself ample time to prepare for the future of your business. You can audit your assets beforehand and get a good understanding of where your business stands. You may also work with your tax accountant to devise strategies that help you minimize business and estate taxes, as well as work out a succession plan that takes effect if you become incapacitated or pass away. CG has extensive experience working with companies in Professional Services, Healthcare, Construction and a slew of other business sectors.
With the new estate tax laws exempting everyone but the extremely rich from paying estate taxes, estate planning is now focused primarily on making the most of your business and assets while you’re alive, and giving your children a platform to preserve your business and wealth when you pass away.
For all your estate planning and business succession needs, please contact us. Services on offer include business accounting, forensic accounting, and tax services. Let us work together to secure your future.