Providing differentiated services that retain and grow a book of loyal clients.
In the ever-evolving landscape of tax planning and financial advisory services, CPA firms are continually seeking ways to enhance and deepen their relationships with clients. One of the most effective avenues for achieving this is through incorporating estate tax planning into their practice. By partnering with Baker Wealth Strategies, CPA firms can help clients reduce current and projected estate tax exposure, thereby cementing their position as trusted advisors.
Let’s start with an overview of the federal estate tax.
Understanding the federal estate tax is crucial for both CPAs and their clients. As of the publication date, the federal estate tax exemption is $13.990 million per individual for 2025—almost $28 million per married couple. However, this exemption is subject to change with the potential sunset of the Tax Cuts and Jobs Act (TCJA) in 2026, which could reduce it by approximately half the current amount.
The estate tax rate currently stands at 40%, making it imperative for high- and ultra-high-net-worth clients to engage in strategic estate tax planning.
How do we identify clients who will benefit from estate tax planning?
Two types of clients fit the profile of benefitting from estate tax planning:
- the client who presently has a taxable estate in excess of the federal estate tax exemption; and
- the client who is rounding the bases to accumulate a taxable estate.
The second type of client generally owns assets that are rapidly appreciating in value, such as a closely held business that is beginning to take off, or they are a high-income earner with an annual income of $1 million or more. Even though these clients do not presently have a taxable estate, it is reasonably foreseeable that they will, which is why estate tax planning in advance of an estate tax problem is almost always more efficient, with a broader array of options available to the planner.
As a general rule, clients with $10 million in net wealth (including the value of closely held business interests and the death benefits of any personally owned life insurance) or $1 million or more in annual income will benefit from at least having an initial discussion about planning to reduce estate tax exposure.
Why should CPA firms incorporate estate tax planning?
Deeper relationships and comprehensive services position clients to achieve long-term goals.
Incorporating estate tax planning allows CPA firms to offer a holistic suite of services, addressing not only income tax but also estate tax issues. This comprehensive approach enhances client relationships by demonstrating a deep understanding of the client’s financial landscape and long-term goals.
Estate tax planning is a key differentiator for CPA firms.
In a competitive market, differentiation is key. Offering specialized estate tax planning services sets a CPA firm apart from competitors. Clients will perceive greater value in a firm that proactively addresses complex tax issues and provides tailored solutions.
With estate tax planning, CPA firms remain subject-matter experts for clients.
By bringing in the right experts, such as the team at Baker Wealth Strategies, CPA firms can position themselves as subject matter experts on a wide range of tax matters. This not only instills confidence in clients but also ensures that they receive the best possible advice and strategies.
CPA firms that offer broader services attract and retain loyal clients.
Clients are more likely to trust and remain loyal to advisors who can handle all aspects of their financial well-being. By overseeing the estate tax planning process and collaborating with Baker Wealth Strategies, CPA firms can solidify their role as trusted advisors.
Incorporating estate tax planning as a service offering means working with experienced partners and quantifying the impact of value-added services.
Start by leveraging Baker Wealth Strategies’ expertise.
Baker Wealth Strategies offers a wealth of knowledge and experience in estate tax planning. Our team consists of a CPA/CFP and a licensed attorney with an LLM in wealth management law, collectively bringing over 30 years of experience in assisting high and ultra-high-net-worth clients.
Bring our firm into the room for comprehensive consultations.
CPA firms can partner with Baker Wealth Strategies to conduct comprehensive consultations with their clients. This involves analyzing the client’s current estate tax landscape, exploring options to improve their position, and providing tailored recommendations based on their unique circumstances.
Maintain control of client relationships.
One of the primary concerns for CPA firms when involving external experts is maintaining control of client relationships. By collaborating with Baker Wealth Strategies, CPA firms can remain at the forefront of client interactions. The CPA identifies the issue, brings in the experts to deliver the solution, and oversees the process through to completion, ensuring the client perceives the added value.
Quantify estate planning as a value-added service.
CPA firms can further enhance client satisfaction by quantifying the impact of estate tax services as a value-added service. This involves calculating the potential estate tax savings for the client, which can be substantial given the current estate tax rate and possible future changes to the exemption limits.
Get started today.
Incorporating estate tax planning into a CPA firm’s practice is not just a value-add; it is a strategic move that enhances client relationships, differentiates the firm in a competitive market, and solidifies the CPA’s role as a trusted advisor.
Baker Wealth Strategies delivers real value to CPA firms, allowing firms to provide comprehensive and effective estate tax planning services without the need to have all the experts in-house.
Our collaborative approach to partnerships ensures that clients receive the best possible guidance and strategies, ultimately leading to greater client satisfaction and loyalty.
Schedule a discovery call today to get started.
