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6 Reasons You Should Hire a CPA When Administering an Estate

Six Reasons to Hire a CPA During an Estate Administration

Why should you consider hiring a CPA as you administer your loved one’s San Diego estate? The following are six important reasons:

  1. Estates and trusts have many different tax obligations. Failing to fulfill these obligations could result in costly fees and penalties.
  2. Rules surrounding income for trusts and estates are highly complex. Most individuals not experienced in this field will struggle to handle these issues properly.
  3. Determining the value of assets of the trust or estate is one important concern when it comes to taxes. These valuations can be impacted by complicated tax-related rules and should be handled by someone well versed in these matters.
  4. Personal representatives or trustees may be accused of wrongdoing if they miss tax-filing deadlines or fail to pay taxes owed. Working with a CPA will reduce the likelihood of this occurring.
  5. There may be discounts, credits, or deductions that can be applied to save the trust or estate a significant amount of money. These reductions may be unfamiliar to someone who is not familiar with complicated trust and estate tax laws and may result in missed opportunities.
  6. If questions are raised by the IRS about specific estate or trust tax matters, your CPA can work directly with the agent involved. Your CPA will also be familiar with how best to handle the issue at hand in order to maximize the chances for a positive resolution.

Unfortunately for taxpayers, our obligations to the IRS simply do not end after we pass away. Trusts and estates are responsible for their own unique tax obligations. Our article, “Having Left This World, You Still Need to Pay Your Taxes in California,” describes more about these post-death tax issues.

To learn more about the tax issues that accompany the administration of a probate estate, we encourage you to follow us on Facebook! We frequently post links to helpful information.

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For an individual in charge of administering an estate in San Diego, a tax advisor is a vital asset that can greatly benefit the personal representative during the administration process. This tax advisor may be a certified public accountant that specializes in or is experienced with handling trust and estate tax matters. While the estate or trust will be responsible for paying the CPA’s fees for his services, this cost is often greatly outweighed by the significant benefits that the CPA brings to the table.

Scott Grossman

Scott Grossman


The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307

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