While many individuals present plenty of ways of managing and administrating an estate, on a very basic level, the topic of CPAs role in the matter is yet under-discussed. And while many of us can acquire basic information on the topic, it’s considerably more efficient to hire a CPA and let them professionally manage these matters since they certainly have a wider knowledge base and incredible sets of skills. Many seem to outline the importance of hiring a lawyer for estate planning and administration matters, but they seem to neglect the importance of hiring an accountant. Below we have some important information on the topic.
In estate and trust administration, CPAs play a great role
While managing an estate or trust, you may come to a conclusion that the tax requirements in the field are far beyond what you can deal with. In this case, a CPA or certified public accountant will help you. Many consider the option of hiring an EA. But, unlike CPAs, these specialists can only manage taxation matters, while CPAs will successfully deal with all accounting areas, so this comes as a bonus. However, you must remember that both EAs and CPAs are qualified to deal with taxes when it comes to estates and trusts. The main reason for which this happens is that trusts and estates don’t fall under regular public taxation regulations. In trusts’ case, CPAs can act as protectors as well. Consider the services of a specialist from Stephens & Nashland CPAs, when in need.
What is a trust protector?
A trust protector is an assistant of corporate trustees and trust beneficiaries in the process of managing and preparing taxes. Its powers are contractual, as stipulated, and they are described in the trust document. This is a very common practice for offshore asset protection planning and it’s an added safety measure for trustees and trust beneficiaries equally.
What duties have CPAs as trust protectors?
A trust protector has plenty of duties, one of the most important is that they can replace or remove a trustee. They can also resolve disputes between trustees and trusts, and, if necessary, replace the administrative bodies of the trust. Moreover, they can redistribute trust provisions and statuses, based on unexpected events that may appear in the lives of beneficiaries or even unexpected law changes.
CPAs or EAs?
Given the expanded powers of a CPA, specialists advise investing in the services of this kind of specialist. EAs can only manage taxation matters, while a CPA will act as an adviser and protector of trustees, beneficiaries and trust as an entity. As you can easily imagine, hiring a trustee is a far more advantageous solution.
These are some important aspects one should take into account when it comes to trust planning and administration. When in doubt, always opt for the specialist with extended capabilities, as they can help you in unexpected ways. Hiring a CPA for trust protection and administration can prove itself a wise decision. In most cases, trust lawyers must complement the services of a CPA.Read More