Planning during a Pandemic: Estate Planning with Peace of Mind

Brad Smith • August 21, 2020

The COVID-19 pandemic has forced many people to think about the possibility that they, or a loved one might get sick. Having an estate plan in place can ensure that your wishes are heard, kept, and your family or loved ones are taken care of in the event of your incapacity or death.

Essential Planning for Potential Incapacity

In this time of uncertainty, it is important to plan for the potential of being incapacitated, for whatever amount of time. It can be disastrous if an individual has not granted authority to specific people to act on their behalf.

Durable powers of attorney give you the power to assign a trusted family member, friend, or loved one who you believe to be qualified, to act for you in case you are unable to make decisions. You can create a durable power of attorney for financial matters, medical decisions, or other circumstances. For financials, you name an agent to handle your finances in the event you are unable to do so. If you establish a revocable trust, the successor trustee can manage your assets for your support in the event of incapacity as well as provide for your spouse and any minor or disabled children. With a medical directive, or a living will, you can communicate your wishes regarding medical care should you become terminally ill. A durable power of attorney for health care decisions assigns an agent to make medical decisions on your behalf in keeping with the medical directive if you are unable to do so.

If these documents are not in place, then a court proceeding will be required to name a guardian and conservator to manage your assets and make decisions on your behalf. In a court setting, you will not have a say in who is selected to act on your behalf and your family may disagree as to who should have the rights and responsibilities to manage your affairs. With an accurate estate plan in place, you are able to avoid this issue.

Proactive Planning

An estate plan provides assurance that your wishes will be followed at your death and that your loved ones will be taken care of in the manner you desire. Every family is different, but every family will benefit when an estate plan is in place.

Some families require more attention to an estate plan than others, depending on the circumstances. There may be concerns about a potential conflict between your spouse and children from a prior marriage; you may have a loved one who cannot manage his or her affairs or is suffering from an addiction; you may also wish to leave assets to a charity. With thoughtful, accurate planning, you can direct who will benefit, and under what terms, from the assets you have accumulated over your lifetime. It also names the individuals who will be in charge of your affairs. Lastly, depending on the value of your estate, you may need to engage in tax planning to avoid unnecessary taxes.

Having an estate plan in place can prevent your affairs from becoming public at your death. If you own assets in your individual name without proper beneficiary designations in place, then, at your death, those assets will need to go through probate. Without proper documents in place, state law will dictate who will benefit from your estate. If minors or disabled loved ones inherit your assets without a will in place, there will be more court involvement required to obtain the assets that would have been otherwise in the will. Similarly, a probate can complicate the ability to sell hard-to-value assets, such as real estate and closely held businesses. If your assets have been transferred into a revocable trust and you have the proper beneficiary designations in place, a probate will be avoided, and your affairs kept private. A revocable trust can avoid the delay and hardship of a probate.

The COVID-19 pandemic has led to large amounts of worry and stress, understandably. Life is far from normal, leaving us all with unsettled questions, and without certainty as to what the future holds. When planning for possible incapacity or death, it is a considerate thing to do for your family or loved one. By having estate planning documents in place, you have simplified a potentially complicated process. Because of this, you reduce the time needed to finalize your estate and ease the stress on those left behind.

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