Estate planning checklist.Does your client's estate plan take advantage of all available techniques to minimize estate taxes and efficiently pass property to the next generation? The checklist below includes questions CPAs should ask to make certain their clients have a comprehensive estate plan. [] Dou you have a will? [] Does your will name a guardian for your children? [] Are you comfortable with the executors and trustees you have selected? [] Have you reviewed your estate plan in the last year? [] Have you considered a living trust to help avoid probate probate (prō`bāt), in law, the certification by a court that a will is valid. Probate, which is governed by various statutes in the several states of the United States, is required before the will can take effect. ? [] If you have a living trust, have you titled your assets in the trust's name? [] Are you taking full advantage of the estate tax marital deduction marital deduction n. when one spouse dies, the survivor may take a tax deduction of half of the value of the estate of the dying spouse. Thus, the minimum value of the estate before there is a possible federal estate tax rises from $600,000 to $1,200,000 at the death ? [] If you want to limit your spouse's flexibility over his or her inheritance, have you created a qualified terminable interest Noun 1. terminable interest - an interest in property that terminates under specific conditions stake, interest - (law) a right or legal share of something; a financial involvement with something; "they have interests all over the world"; "a stake in the company's property (QTIP QTIP Qualified Terminable Interest Property QTIP Quit Taking It Personally QTIP Quantum Theory Integral Package ) trust in your will? [] Are both spouses' estate plans designed to take full advantage of the $600,000 unified credit unified credit A credit used against federal taxes due on estates and large gifts. Under current law, the unified credit is sufficient to offset taxes on values of approximately $1 million in estates and large gifts. exemption equivalent? [] Do you and your spouse each own enough assets titled in your own names so you can each take advantage of the $600,000 exemption? [] Do you have the right amount and type of life insurance? [] Have you used an irrevocable life insurance trust to prevent life insurance proceeds from being taxed in your estate? [] Are you taking maximum advantage of the $10,000 annual gift t exclusion? [] Have you created trusts that qualify for the annual gift tax exclusion? [] Have you made gifts of assets that are likely to appreciate in the future? [] Have you looked into the benefits of charitable trusts? [] Do you have a management succession plan for your business? [] Do you have a buy-sell agreement buy-sell agreement n. a contract among the owners of a business which provides terms for their purchase of a withdrawing partner's or stockholder's interest in the enterprise. for your family business? [] Have you considered a gift program involving your family business? |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion