Monday, July 6, 2020
The COVID-19 pandemic has brought estate planning to the forefront of people's minds. Many of us have no frame of reference nor protocol to address the many medical, financial, insurance, and legal issues that need to be addressed.
Are we prepared as a nation? Are we going to get sick? Are we going to recover? Are we covered for medical costs? Will we lose our cognitive faculties? Will we lose our jobs, our income, and/or our businesses? Who will take care of us or make legal and financial decisions if we do get sick? What if our client or their family member is in an assisted living facility or nursing home and is incapacitated? Who is authorized to return that person back to private care in their own home or with other family for private, safer care with less risk of the fast spreading virus than in today’s traditional institutional facilities?
Henry Montag of The TOLI Center East and Andrea Schanker of Schanker & Hochberg walk through key considerations for life insurance and estate planning during the this unusual time. All of these “what if” questions are at the forefront of our clients’ and their families’ minds.
While no plan can remove the emotional hurt of seeing a loved one dealing with a medical or cognitive issue, we can at least assist a client and their family to handle the financial, legal, and planning aspects first, so as to avoid a crisis in the event a client or a family member is directly impacted by this pandemic.
Here are several considerations to keep in mind during the pandemic:
1. Core Estate Plan
2. Core Documents
3. Retirement Planning and the SECURE Act
4. Life Insurance and the SECURE Act
5. Differing Life Insurance Strategies
6. Life Settlements During the Pandemic
7. The Historic Opportunity to Pass Wealth with Maximum use of the Gift Tax Exemption-GIFTING
8. Intra-family Loans
9. Guidance to Adhere to
See, Henry Montag & Andrea B. Schanker, INSIGHT: Estate and Life Insurance Considerations During the Covid-19 Pandemic, Bloomberg Tax, June 18, 2020.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.