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A proper estate plan ensures everything you own is protected and goes to your trusted beneficiaries. Beatriz Phipps is a fully licensed CPA at California Prime Accountancy Corp. in Alhambra, and she has 25 years of experience in estate planning. She is personable and patient while helping families develop estate plans that secure their legacy.
Estate planning includes how you plan to preserve, manage and distribute your assets should you become disabled or in the event of your passing. Your estate is the sum of your assets, and includes houses, cars, stocks, valuables, life insurance, pensions, and debt. An estate plan can protect your family’s wealth, provide for your family after your passing, fund your inheritors’ future educations, or leave a legacy to a charitable organization.
Create a Will
Part of a wise estate plan includes the drawing up of a will. This may seem self-evident, but a surprising number of people do not have a will. After a person passes, though, their estate is divided and distributed through probate court. This can be a drawn-out and stressful process for your family. Creating a will, and potentially a trust, is the best way to transfer assets to a beneficiary. Wills also provide legal protection for your estate.
Develop a Trust
Establishing a trust helps you avoid paying gift taxes, going to probate court, and paying down outstanding debts. There are two types of trusts; those that go into effect during your lifetime (living trusts) or at the time of death (testamentary trusts). A trust establishes a legal framework that protects you from estate taxes and distributes assets such as life insurance and property. They also protect your privacy by not being made available to the public.
Protect your Retirement Pension
A trust can also protect retirement funds from taxation. Should a beneficiary pass who is someone other than a spouse, your pension is subject to income tax. If you transfer your retirement into a Roth IRA, your beneficiary can enjoy tax-free distributions.
Call California Prime Accountancy Corp. for Excellent Advice and Estate Planning
Beatriz Phipps attentively listens to your goals and carefully reviews the unique factors that make up your estate. She can help you transfer assets in an equitable and fair manner, while saving you from spending money on unnecessary taxes and fees. Give California Prime Accountancy Corp. in Alhambra a call today!