Hiring a CPA After the Death of a Loved One

<img src=https://dcr-apis.s3.us-east-2.amazonaws.com/wp_contents/uploads/DCR-ADMIN/Article_Webp/Craig.webp alt=undefined style=height: auto;width: auto/> Originally written by Craig Lorenz, CPA When a family member or business partner dies, hiring a CPA is likely one of the last things on your agenda. However, it can be a savvy move that helps you sort out business holdings, retirement funds, trusts and other assets in a simple, helpful way. “A CPA can help you get things settled or established, including finances, businesses, property, inheritances, stocks, retirement funds and other accounts,” says Craig Lorenz, a Santa Rosa-based accounting professional. “As a surviving heir, you have a legal responsibility to other beneficiaries to safeguard any assets.” A CPA can help you sort out what those assets are and how they’re to be delegated. “There may or may not be an executor of the will and trustees, for example,” explains Mr. Lorenz. “Then there are titling issues to sort out. How are the businesses titled? Are they in a trust, or are they titled to a husband or wife as joint or community property? Are stocks and bonds, retirement funds or properties part of the deceased’s holdings? All of these details matter for taxability, so establishing a relationship with a CPA can be very helpful.” Individuals who inherit businesses, property, investments and other assets also need to hire accountants to file the correct paperwork. “Any kind of estate transfer requires Form 706, which is also referred to as the ‘death tax return,’” says Mr. Lorenz. “You need to file this to have a market value basis for any property that changes hands, and I always advocate filling out the form and sending it to the IRS rather than getting an appraisal later. That way, you have a real appraisal that’s legitimate and legal.” Hiring a CPA to help you sort through all of the financial particulars also protects you. “Trustees usually try to do their best, but if they don’t have the correct knowledge, they can get into trouble,” cautions Mr. Lorenz. “They’re acting on behalf of all the other beneficiaries in the trust, so they’re responsible for a standard of legal performance and safeguarding assets. It can be difficult to figure out your responsibilities without professional counsel.”  <a href=https://www.diamondcertified.org/ target=_self>Use Diamond Certified Resource to find top rated companies</a> Related Articles <a href=https://www.diamondcertified.org/Guide/funerals-and-memorials/ target=_self>The Essential Guide to Funerals & Memorials</a> <a href=https://www.diamondcertified.org/find-expert-advice/ target=_self>Get Expert Advice From Owners of Top</a> <a href=https://www.diamondcertified.org/find-expert-advice/ target=_self>Rated Local</a> <a href=https://www.diamondcertified.org/find-expert-advice/ target=_self>Companies</a> <a href=https://www.diamondcertified.org/membership/ target=_self>Become a Diamond Certified Preferred Member (Always Free)</a>