You’d be hard-pressed to find someone who hasn’t been at least slightly impacted by the coronavirus pandemic. For many Americans, it has greatly injured their livelihoods and financial health. As we move forward in light of COVID-19, it’s important to determine whether any of your estate planning documents must be revised based upon how your estate value has been impacted.
Therefore it’s important that you speak with a knowledgeable and experienced estate planning attorney. He or she will be able to help you to do the following:
Reassess the Value of Your Investments
Since the stock market and other investment sectors have experienced a lot of volatility during parts of the pandemic, it’s important that you take a new look at your investments and their worth. While you may have thought that your assets would remain above at least a certain level, this, unfortunately, may no longer be the case. Be sure to reassess your wills and trusts in light of the new value of your investments.
Re-examine Your Business Succession Plan
One thing that the coronavirus has certainly impacted is the way in which we do business. Many companies are struggling to survive this difficult time, while others have unfortunately already lost the battle. Even for those businesses that do make it through, the business will not look the same – at least not for a long time. Therefore it’s a good time to consult with an attorney on your business succession plan since it may no longer appropriately reflect the current corporate landscape.
Weigh the Option of a Tax-Friendly Gift
Since investment values are now lower, it may be a good time to examine whether you want to make a tax-free transfer to another. Today’s pricing may be able to help you give a gift that will be even more valuable. Those who are considering reducing the size of their estate for tax purposes may choose to create a gift-giving plan leveraging the current value of their assets and stocks. You may make a tax-free transfer annually of up to $15,000 per recipient.
Although it is imperative when creating an estate plan that it meets all state and federal requirements and is legally enforceable, you may have to change the terms of your plan over time. Until you pass away, so long as you have the mental capacity you can revise your estate plan. Therefore, after such a major world crisis, such as is the case with COVID-19, it’s in your best interest to re-examine your current estate plan with the help of a qualified estate planning attorney.
At Heritage Legal, PC, we understand the importance of protecting those whom you care about most and helping to ease the burden on your family. We can help you to establish a CalABLE account for those with special needs. To learn more or to schedule a free consultation, contact us today!