With the ever-increasing number of deaths from the coronavirus in Europe and the U.S., many people are now focusing on getting their estate plans in order. Phone meetings or videoconferences with estate planning attorneys have become the new way of updating estate plans, says Barron’s in the article “The Coronavirus Has Americans Scrambling to Set Their Estate Plans. Here Are Some Key Things to Know.” This is the case at Galligan & Manning where we have been meeting with our clients by phone or video conference and arranging for documents to be executed in the safety of our clients’ homes.
People are worried, and they are in a hurry too.
Here are a few tips:
Everyone should have three basic documents: a last will or revocable living trust, a financial durable power of attorney, and a medical power of attorney. These documents will allow assets to be distributed, give another person the ability to make financial decisions, if you are too sick to do so, and allow another person to talk to medical professionals and make medical desisions on your behalf . These same documents are also a good idea for any young adults in the family, anyone older than 18 in Texas.
However, there’s more. In addition to these basic documents, everyone needs to review their beneficiary designations on assets that include bank accounts, IRAs, annuities, insurance policies and any other assets. If family situations have changed, these may be out of date.
Also, parents of minor children need to execute documents appointing guardians to care for their minor children in the event the parent is unable to do so.
While young adults may be more worried about the financial impact of the pandemic, seniors and the elderly are concerned about having documents in order. Wealthy people are concerned about the impact that the pandemic may have on estate planning law, and some are engaged in planning to make substantial gifts, in case the current estate and give tax exemptions are lowered.
Specific issues to be discussed with an estate planning attorney:
- The advantages of certain trusts, which provide an opportunity to direct how assets will be held, invested and distributed before and after death.
- Financial durable powers of attorney, which appoint an agent to make financial decisions.
- Medical powers of attorney which let people designate an agent to make health decisions on their behalf
- HIPAA Releases which allow family members receive health care and medical information from your health care providers.
- Living wills, which allow people to designate whether to provide life-prolonging treatment, if in a terminal state
To learn more about what you need to consider when updating your estate plan see https://www.galliganmanning.com/estate-planning-life-stages/.
Reference: Barron’s (March 22, 2020) “The Coronavirus Has Americans Scrambling to Set Their Estate Plans. Here Are Some Key Things to Know”