We’ve all heard that we should get our estate plans done and keep them updated. And we’ve all heard the reasons: “protect your loved ones”; “if you don’t decide who gets your stuff then the courts will”; “reduce potential family conflicts”; “if you’ve had a change in family status”; “to save your loved ones taxes and probate fees.” All true, but if you’re like most people, you still haven’t taken action. Well, here are six more pretty terrific reasons to take action now!
1. The Coronavirus. There’s a little bug going around called SARS-CoV-2. You may have heard of this beastie. Not to be alarmist, but did you know it could infect half the U.S. population, and kill as many as 200,000 to 1.7 million Americans?
https://www.nytimes.com/2020/03/13/us/coronavirus-deaths-estimate.html
2. Estate Planning Takes Time. Once you decide to draft or update your estate plan, you need to find a qualified trust and estate attorney, make an appointment, fill out intake paperwork, decide what provisions you want, meet with your attorney, review the plan, and sign the documents. All of this takes a few weeks in most cases, and with the coronavirus out there, increased demand for planning and estate settlement services could mean delays in getting your plan completed. To be blunt, the coronavirus can sicken and kill faster than that. It’s best to act now!
3. You May Be a Beneficiary. Okay, this may be a stretch, but maybe not a huge one. If you encourage someone else to get their estate plan done — perhaps by setting an example — you may just be setting yourself up for an inheritance (or reduced family tension). One example: If your parents are elderly and especially vulnerable to the coronavirus, it may be time for them to update their plans. You can break the ice by saying, “I have decided to update my estate plan,” or “I just read that people should have their estate plans in place.” Note that I am not recommending pressuring anyone here! These are delicate and sensitive conversations, and it may be best to encourage family-inclusive communication to avoid conflict down the road.
4. Add Meaning. You may have already done an estate plan. But most plans are cold and impersonal. You can act now to add meaning to your final wishes, expressing your love and wishes by writing an Ethical Will, sometimes referred to as a Legacy Letter. “An ethical will, or legacy letter, is a way to share your values, blessings, life’s lessons, hopes and dreams for the future, love, and forgiveness with your family, friends, and community.” Besides the obvious blessing, knowing the “why” behind the plans can help provide clarity about intentions, and even forestall conflict, in many cases.
https://celebrationsoflife.net/ethicalwills/
5. Rules are Changing. If you haven’t updated your estate plan in the last couple of years, your plan may well be out of date. That’s because The Tax Cuts and Jobs Act (TCJA) of 2017 included several significant revisions to previously existing estate tax laws. These included portability, and higher estate and gift tax exemption limits. For example, the need for so-called A and B trusts has diminished and may even prevent maximal use of the new, higher exemption limits. Moreover, the TCJA sunsets in 2025. Families with substantial estates should look carefully at taking advantage of current, generous estate tax laws while they still remain available.
6. It Can Be Gratifying. Personally, I have found estate planning itself to be meaningful and fulfilling. I’m motivated and pleased when I think about those who will benefit from the assets I leave behind. From the school that transformed my life and set me up for my career, to civically-minded groups I participate in, to friends from high school days, I know that others are going to benefit. And being a contribution to others is extremely gratifying.
— Peter W. Johnson, Jr.
Important Note: This article is not meant to constitute legal advice. We strongly recommend that you consult with a qualified attorney when it comes to estate planning. It’s a complex, changing field, and there’s a lot at stake for you and your heirs.