Philadelphia PA Estate Planning Blog

Fall Estate Plan Check-Up

As we rapidly enter the Fall season, I thought it would be a good time to check back in and discuss a few estate planning concepts.

With the election season upon us, there is continued talk of what tax laws may change, and how that may affect estate planning. As always, I will keep up on any changes that could affect your plan and keep in touch with you.

Understand Your Estate: One issue I am seeing is that some folks I meet with don’t understand how their estate would work when they die. They think everything will pass based on the instructions written in the Will, but that is not always the case.

In the middle of the Coronavirus pandemic, is now the right time to consider updating or starting your estate plan?  Below are seven reasons I put together to consider why now may be the time. In no particular order:

1 – Concern About Future: For me, the pandemic has been eye opening in several ways personally, and many of my clients who have started their estate plans in the last couple of months say the same thing. Their concern for the future—and the unknown—has added urgency to planning.

2 – SECURE Act: The SECURE Act was passed in December, 2019—feels like a century ago, right? But it could change your estate plan, particularly if you have significant retirement assets. Get your plan reviewed to ensure it is SECURE Act optimized.

The Coronavirus pandemic has been a shock to the country, and to each of us individually. Even in good times, clients were anxious to get their estate plans completed. Now, the desire to get a plan in place is even more intense, especially for those on the front lines of this crisis. 

The best time to plan is in good times, when life is calm, and you have the freedom of time to make decisions at a settled pace. Conversely, death bed wills are terrible because the person is under duress, can’t think clearly, and typically another family member is calling the shots.
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With COVID-19 and non-stop talk about the Coronavirus spread, is now the right time to start thinking about estate planning? Certainly, events like this force all of us to think about essentials--taking care of ourselves, our family, and making sure we have enough food and supplies. It is natural to want to put any non-essential task/project aside. I know I have done the same, preferring to use my time, energy and money for essentials right now.

My office is currently working virtually for the time being. Estate planning in Pennsylvania still requires documents to be signed, witnessed and notarized in person.
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This year, estate planners around the country are dealing with the new SECURE Act that Congress passed and the President signed into law late last year. The SECURE Act went into effect on January 1 and makes several changes to retirement plans.

For clients hoping their children or loved ones would be able to “stretch” an inherited IRA out over his or her lifetime, the new law restricts the payout time to 10 years. Those who’ve added an extra layer of protection using an IRA Trust will have to consider modifying such a trust, while also considering new planning opportunities.

As I tell clients, estate planning laws change every few years.

Procrastination with estate planning is common, but nonetheless unfortunate. Without a proper estate plan, you risk family conflict, placing a burden on loved ones during a difficult time, and ultimately leaving less money for the people you want to provide for. Having an estate plan is like having an insurance policy—you hope you never need it, but when you do, it’s there for you.  I have heard many excuses for failure to plan during my years of practice and describe a few of my ‘favorites’ below.