COVID-19 and estate planning
The ongoing COVID-19 pandemic has affected families across every aspect of their lives, from work to school, from health to finances. Never before in modern times have we faced such a swift, pervasive and unpredictable threat to our very way of living, and many families are wondering how best to prepare for an uncertain future.
Whether you need an estate plan or want to update an existing one, there has never been a better time.
If you don’t have an estate plan
Estate planning is something that no one really wants to think about. However, without an effective plan, you lose the opportunity to ensure that your choices are communicated to your loved ones, and also your ability to control the legal process following death or disability.
Contrary to popular belief, an estate plan doesn’t have to be expensive, and there are plans to meet every budget and need. An effective plan may include a will, living trust, powers of attorney or other key documents, and it offers several benefits, including:
Control: With an effective plan, you can ensure that you determine how all of your assets should be distributed.
Values: You can also help ensure transmission of your own personal values, such as religion and education.
Guardianship: If you have minor children, a plan will establish a guardian for their care.
Funeral arrangements: Without specific instructions, your family may not know your preferences.
Special considerations: If you have family members with special needs, need to ensure the transfer of your business, or want to explore insurance options – such as life, disability or long-term care insurance – a good plan can cover all of this.
If you already have an estate plan
It’s a good practice to review your estate plan periodically, but especially during major socioeconomic events such as the current pandemic. Some key areas to consider in light of COVID-19 include:
Sickness: Does your plan cover what to do if you get sick to the point of being incapacitated? While the effects of the virus are still being studied, we do know that some people – especially seniors and those with serious existing medical conditions – may experience lingering symptoms.
Powers of attorney: Are the agents that you specified for a healthcare, financial or other power of attorney still relevant? COVID-19 has brought all of us face to face with our mortality, and whether an agent has passed away, become incapacitated or is otherwise unable to perform power of attorney duties, it might be time to update this information.
Beneficiaries: The same is true for family members or other beneficiaries. Do you need to make any changes here?
Online passwords: Have you changed these since the last time you updated your estate plan? If so, you’ll want to ensure that these also get updated in your estate plan, to make it easier for your loved ones to manage all of your accounts if something happens to you.
Refinancing: We are also currently experiencing historically low interest rates on loans. This may warrant a review of your current estate planning financial strategy and potential refinancing or other options, both to save cost and for the benefit of family members and other beneficiaries.
Virtual estate planning
With stay-at-home orders and an overall hesitation that many have for meeting in person, much estate planning business is now being conducted virtually. This includes online witnessing and notarization of key estate planning documents such as wills through audio-video conferencing. This process is legal in Michigan and it’s now possible to coordinate much, if not all, of your estate planning virtually.
No matter how long the COVID-19 pandemic lasts, making sure your affairs are in order will help to ensure you can communicate your wishes to your loved ones and make their lives easier. Also, while everyone’s situation and needs are different, the one universal truth is that by developing your custom plan before you need it, you can help minimize costs from taxes, court costs and legal fees.
Call (810) 207-6670 or complete our online form to request a free phone consultation.
Buzz Suuppi
Buzz started The Plan Firm for his family, which is everything to him. Every member of his team is committed to providing effective estate planning and related solutions for families in St. Clair County, Michigan.