Estate Planning Amid the Pandemic

Key Takeaways

• Create or update your will immediately if you don't have one—38% of millionaire investors lack a will—and review existing wills every 5-10 years to reflect major life changes like children's marriages, grandchildren, or career changes
• Ensure your financial power of attorney and healthcare directive are current and have detailed conversations with your appointed agents about end-of-life decisions like ventilator use and life-sustaining treatment preferences
• Review beneficiary designations on all contractual assets (401ks, IRAs, insurance policies) separately from your will, as these often comprise the bulk of your estate and pass outside probate directly to named beneficiaries
• Consider using trusts like a Spousal Lifetime Access Trust (SLAT) to reduce estate taxes while still providing for your spouse during your lifetime
• Take advantage of current high estate tax exemptions ($11.5 million in 2020) by making charitable gifts through Qualified Charitable Distributions (QCDs) from IRAs, even if not required to take RMDs, as these rules are subject to change