When a loved one or family member passes away, their estate and will must be executed in a precise and accurate manner.
There is a lot to consider when compiling an estate accounting and the process can be stressful and complicated.
The Role of the Executor
Being an executor of an estate is a huge responsibility. This individual is in charge of:
- Collecting state assets;
- Transferring funds to the estate account;
- Filing estate taxes;
- Settling estate debts;
- Distributing property to beneficiaries.
All of this must be completed in accordance with the deceased’s will.
The entire process can become complicated and hard to keep track of, which is why you should call an experienced accounting firm.
Liu & Associates, LLP is available to help you set up an estate accounting.
What is Estate Accounting?
Estate accounting is a document that provides specific details about what property was included in the estate at the time of death, any properties added after death and how the estate will be distributed.
An estate accounting is more than a pile of receipts – it is an organized set of financial statements which detail the assets, income, expenses and disbursements of the estate.
Again, all this responsibility falls onto the executor of the will.
Special Considerations When Settling an Estate
Once an estate has been set up, it no longer falls under the same tax requirements as a single person or couple.
This means that different tax forms need to be filled out and various amounts of taxes will need to be paid.
It is recommended to have a certified public accountant (CPA) help you sort out the estate and aid in special tax considerations.
Our professional accountants at Liu & Associates can support you in:
- Organizing all tax records;
- Keeping track of bank accounts, statements, and distribution;
- Paying the appropriate taxes.
- After death succession and the related paperwork.
Are there any tax implications for an inheritance in Canada? Find out here!
Avoid Potential Penalties
Just one minor mistake can result in fines and additional taxes.
This is why it is so important to keep extremely accurate estate records. A minor slip up when reporting interest, net worth or property valuations can have serious repercussions.
In the case of inaccurate reporting, the government can step in and force the estate to pay fines, feed and, in some cases, even higher taxes.
Take the Stress Out of Estate Accounting
Dealing with the loss of a loved one is hard enough but dealing with an estate doesn’t have to be a stressful ordeal.
Hiring an accounting firm with a great track record – such as Liu & Associates – can prevent fines, fees, and penalties from occurring as well as ensure all aspects of estate accounting are completed thoroughly and properly.
Let our experienced accountants handle all of the financial matters concerning your estate and help your successors start off on the right foot. Contact Liu & Associates today.