Estate planning involves both legal and financial decisions. You may need documents that express your wishes, an estimate of potential taxes, and a plan for managing or transferring assets. An estate attorney, CPA, and financial advisor can contribute different expertise.
Start with the work you need done. If you need a will or trust drafted, speak with an estate attorney. If your main questions concern taxes or financial records, a CPA with relevant experience can help you assess those issues and coordinate with counsel.
What does an estate attorney do?
An estate attorney advises on legal arrangements and prepares documents such as wills, trusts, and powers of attorney. Counsel can also explain beneficiary provisions, ownership arrangements, and the legal steps required after a death.
The Illinois State Bar Association’s estate-planning guide describes how these documents serve different purposes. A will, for example, is one part of a plan. Account ownership and beneficiary designations also need attention.
For document drafting, legal interpretation, or a dispute, work with an appropriately licensed attorney. Tax planning alone does not provide those legal services.
How can a CPA help?
A CPA experienced in estate and trust matters can help organize financial information, assess potential tax obligations, and coordinate tax filings. The work may include reviewing asset values, prior gifts, income, and records needed for an estate or trust return.
Estate tax and estate income tax are different issues. Estate tax concerns transfers at death. Form 1041 is used to report income and other tax items for an estate or trust when a return is required.
Before engaging a professional, ask which types of returns and planning they handle, who will perform the work, and whether a specialist will be needed. Our Tax & Accounting team can discuss your circumstances and the appropriate scope.
Where does a financial advisor fit?
A financial advisor can discuss investment allocation, retirement income, and the cash available to meet expected expenses. Those decisions may need to be coordinated with an attorney’s document plan and a CPA’s tax analysis.
For instance, a family may need to consider how beneficiaries will receive accounts and whether readily available funds will cover expenses. The attorney, tax professional, and advisor should understand the same goals and current account information before recommending changes.
At NRACPA, investment advisory services are offered through Archer Investment Corporation. Tax and accounting services are provided by NRACPA LLC. They are separate engagements; using one does not require using the other. See Wealth Management for more information.
Who should you contact first?
Contact an estate attorney when you need new legal documents, want existing provisions interpreted, or need help with probate or a legal dispute.
Contact a CPA when the immediate question is about a tax filing, financial records, or estimating potential tax exposure. Illinois has its own estate-tax rules, separate from the federal system. Our Illinois estate-tax guide explains the state’s threshold and points to official guidance.
If the questions overlap, ask the professionals how they would work together. You do not need to know every answer before the first conversation.
What should you bring?
Gather the information you have, including:
- Current wills, trusts, and powers of attorney
- A list of assets, debts, and ownership interests
- Account statements and beneficiary designations
- Recent tax returns and records of significant gifts
- Business ownership documents, if applicable
- Your questions, goals, and any upcoming deadlines
Share sensitive documents through the firm’s secure file transfer. Ask before changing account ownership or beneficiaries so the legal and tax effects can be considered together.
Frequently asked questions
Can one person be both a CPA and an attorney?
Yes, some professionals hold both licenses. Confirm their current qualifications, relevant experience, and the services covered by the engagement. Other situations are best served by a coordinated team.
Does a trust eliminate the need for ongoing review?
No. Changes in family circumstances, assets, or applicable law may call for updates. Ask your attorney and tax professional when to revisit the plan and who will keep track of follow-up work.
Do I have to replace my existing attorney?
No. You can discuss how the firm would coordinate with your current attorney and other professionals, with your authorization.
Discuss your next step
Prospective clients can book a free initial consultation to discuss their tax and financial questions. Existing clients can book a meeting about their current needs.
Sources
- Illinois State Bar Association: Your guide to estate planning
- IRS: About Form 1041, U.S. Income Tax Return for Estates and Trusts
- Illinois Attorney General: Estate taxes
This article provides general information, not individual legal, tax, or investment advice.
This article provides general information. Tax and investment decisions depend on your individual circumstances and current rules. Contact the office to discuss your situation.
