Estate Planning Essentials: Beyond the Will
You’ve worked hard for what you have. Maybe you’re a business owner who’s spent years building an enterprise from the ground up, or perhaps you’ve navigated the world of investments, including those complex alternative ones. Whatever your path, you know that creating a legacy is about more than just wealth; it’s about securing a future for the people and causes you care about. When it comes to estate planning, a simple will is a good start, but it’s often just the tip of the iceberg, especially for high-net-worth families.
At Lewis Group CPAs, we see this all the time. The real work is in the details, often in the tax details. You’ll want Lewis Group to work with your estate planners to help protect your assets and ensure your wishes are carried out exactly as you intend.
Beyond the Basics: Why Your Estate Needs a Second Look
So many people think that once they have a will, they’re set. But honestly, for someone with substantial assets, including businesses and sophisticated investments, that’s not the whole story. What happens if you become incapacitated and can no longer make decisions? Who handles your business operations? How do you ensure your alternative investments, which might be in private equity or real estate, are managed correctly and distributed efficiently? These aren’t just hypotheticals; they’re real-world challenges that can create immense stress for your family. A proper estate plan should address these “what ifs” long before they become a crisis. It’s about building a robust framework that goes beyond simple asset distribution and deals with the messy, human parts of life.
The Right Tools for the Job: Trusts and Beyond
Here’s the thing: a will only takes effect after your death. This means it can’t help with decisions while you’re still living. That’s where things like a living trust or a power of attorney come in. A living trust, for instance, can hold your assets—from your business to your investments—and manage them for you and your beneficiaries, both during your life and after you’re gone. This can help you avoid the often lengthy and public process of probate court, keeping your financial affairs private and streamlined. For high-net-worth individuals, using trusts can also be a savvy way to manage tax obligations. When we work with clients, we’re always looking at how to minimize the impact of estate taxes and other related levies. It’s not just about what you give, but how you give it.
Thinking Locally: The Washington and Oregon Tax Angle
If you live or own property here in the Pacific Northwest, there’s a local wrinkle you need to know about. You see, while the federal government has a very high exemption for its estate tax—$13.99 million per individual—states like Oregon and Washington have their own, much lower thresholds. In Washington, for example, the exemption is a little over $3 million in 2025, while Oregon’s is just $1 million.
This means that an estate that might be exempt from federal tax could still get hit hard with state-level taxes. It’s an often-overlooked detail, but it can make a huge difference. Strategies like lifetime gifting or using an irrevocable trust become even more powerful tools here, helping you reduce the size of your taxable estate before those state taxes can take a big bite out of your legacy.
Why Good Bookkeeping Matters for Your Legacy
Speaking of taxes, this is where a firm like ours really shines. We understand that your estate plan is inextricably linked to your tax situation. For many business owners, managing the transfer of a company—or valuing it for estate purposes—is a huge piece of the puzzle. This isn’t just a legal issue; it’s a critical financial one. We help our clients navigate these complexities, ensuring their estate plan aligns with their overall financial strategy. It’s an ongoing process, and it’s one of the reasons consistent bookkeeping and accounting are so vital. You can’t plan for the future without a clear picture of the present.
It’s the foundation of your financial life. Without accurate, up-to-date records, trying to create a comprehensive estate plan is like trying to build a skyscraper without a blueprint. It’s just not going to work. For business owners, especially, maintaining meticulous financial records isn’t just a good practice—it’s a non-negotiable part of safeguarding your assets. Accurate books provide the clear valuation needed for business succession planning and can significantly simplify the work for your heirs and executors. It’s a testament to your professionalism and a final gift of organization to those who will follow in your footsteps.
For more on how careful planning can simplify your financial life, check out a great resource like Investopedia’s guide to estate planning. It’s always smart to have multiple perspectives.
Here are just a few of the things we look at when we help clients with their estate plans:
- Succession Planning: Who will take over your business? A proper plan ensures a smooth transition and preserves its value.
- Gifting Strategies: How to transfer wealth to beneficiaries in a tax-efficient way, keeping state-specific thresholds in mind.
- Alternative Asset Management: How to properly account for and distribute complex investments like private equity or real estate holdings.
- Coordination with other advisors: We work alongside your estate attorney and wealth manager to ensure a cohesive, unified plan.
The bottom line? Estate planning is a living document, not a one-and-done task. It needs to be revisited, especially as your life and circumstances change. New investments, a new business venture, or changes in family dynamics all warrant a second look at your plan. Our team at Lewis Group CPAs works with you year after year to ensure your plan remains relevant and effective.
If you have questions about taxes and your estate plan, or if you’re a business owner looking to get your books in order, we’re here to help. Let’s make sure your hard work stands the test of time.
To learn more about how our full-service accounting and tax solutions can support your estate planning, contact us today or give us a call at (360) 896-8221.
