The current pandemic has made many people confront their mortality, resulting in an insurgence of calls to estate planning lawyers to prepare wills, healthcare documents, and trusts. Smart attorneys are learning to adapt to the changing times and offering creative solutions to help people put important estate planning documents in place. Here are five estate planning strategies that you may wish to consider during the COVID-19 pandemic:
Online Consultations
You do not need to put your health in jeopardy by leaving the safety of your home to discuss your estate plan with a lawyer. Ask your estate planning lawyer if he or she can provide you with online consultation to discuss your estate planning needs. You can do most of the work from home by gathering key financial documents and any previous estate planning documents like an old will or living will. Through video conferencing, email, and telephone, your lawyer should have sufficient technology to consult with you and give you options for how to construct your estate plan. Completed documents can then be drafted and emailed or mailed to you through postal service.
Electronic Notarization
Pennsylvania was the first state to allow for the electronic notarization of documents. While many estate planning documents do not technically require a notarization under the law, most attorneys will advise notarizing estate planning documents as a best practice. A temporary order was implemented in Pennsylvania to allow for the notarization of documents without requiring the physical presence of the notary as long as certain conditions were met. This order applies to a variety of estate planning documents, including wills, living wills, and powers of attorney. Your lawyer or you may be able to arrange for electronic notarization.
Electronic Vaults
People across the nation are having to confront the challenge of prolonged illness. Your loved ones may need access to your estate planning and financial documents if you become ill. Electronic vaults allow you to store and share these materials so your loved ones have the information they need during a crisis.
Gifts to Irrevocable Trusts
Because many assets have decreased in value due to the economic collapse, it may be a good time to use these depressed values strategically as part of your estate plan. One option may be to make gifts to irrevocable trusts such as spousal lifetime access trusts that give your spouse the right to have access to and control them.
Low-Interest Rates
Another repercussion of the economic impact of COVID-19 is historically low-interest rates. You can take advantage of this by executing intrafamily loans. The applicable federal rate for a loan for up to three years is 0.91% in April 2020 and 0.25% in May. The rate for loans for terms beyond nine years is 1.43% in April and 1.15% in May. Similarly, rates that apply to grantor annuity and charitable lead annuity trusts are low and declining.
If you would like to learn more about these options, contact William Matz to discuss these estate planning options.