[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/coronavirus-makes-estate-and-tax-planning-an-urgent-task-white-plains-ny-new-york-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/coronavirus-makes-estate-and-tax-planning-an-urgent-task-white-plains-ny-new-york-ny\/","headline":"Coronavirus Makes Estate and Tax Planning an Urgent Task","name":"Coronavirus Makes Estate and Tax Planning an Urgent Task","description":"\u201cWhat may have seemed like something to take care of \u2018one day,\u2019 has turned into a basic necessity that makes it essential and necessary for you to encourage your clients to act now.\u201d The Covid-19 pandemic has brought estate planning front and center to many people who would otherwise dismiss it as something they would […]","datePublished":"2020-07-21","dateModified":"2024-03-20","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso, LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e9573aca.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e9573aca.jpg","height":600,"width":395},"url":"https:\/\/www.amorusolaw.com\/blog\/coronavirus-makes-estate-and-tax-planning-an-urgent-task-white-plains-ny-new-york-ny\/","about":["Beneficiary","CARES Act","Coronavirus \/ COVID-19","Estate Planning","IRA","Life Insurance","Minor Children","Power of Attorney \/ POA","Revocable Living Trust","SECURE Act","Special Needs Trust \/ SNT","Will"],"wordCount":545,"keywords":["Beneficiary","CARES Act","COVID-19","Estate Planning","IRA","Life Insurance","Minor","Power of Attorney","Revocable Living Trust","SECURE Act","Special Needs Trust","Will"],"articleBody":"\u201cWhat may have seemed like something to take care of \u2018one day,\u2019 has turned into a basic necessity that makes it essential and necessary for you to encourage your clients to act now.\u201dThe Covid-19 pandemic has brought estate planning front and center to many people who would otherwise dismiss it as something they would get to at some point in the future, says the article “Estate and Life Insurance Considerations During the Covid-19 Pandemic” from Bloomberg Tax. Many don\u2019t have a frame of reference to address the medical, legal, financial, and insurance questions that now need to be addressed promptly. They\u2019ve never experienced anything like today\u2019s world. The time to get your affairs in order is now.What will happen if we get sick? Will we recover? Who will take care of us and make legal decisions for us? What if a family member is in an assisted living facility and is incapacitated? All of these \u201cwhat if\u201d questions are now pressing concerns. Now is the time to review all legal, insurance and financial plans, and take into consideration two new laws: the SECURE Act and the CARES Act.An experienced estate planning attorney who focuses on estate planning will save you an immense amount of money. Bargain hunters be careful: a small mistake or oversight in an estate plan can lead to expensive consequences. A competent legal professional is the best investment.Here\u2019s an example of what can go wrong: A person names two minor children\u2014under age 18\u2014as beneficiaries on their IRA account, life insurance policy or bank account. The person dies. Minors are not permitted to hold title to assets. Minors in New York are considered wards of the court in need of protection and court supervision. Therefore, in this state, the result of the beneficiary designation means that a special Surrogate\u2019s Court proceeding will need to occur to have a pecuniary guardian appointed for the minors, even if the applicant is their custodial guardian.Another \u201cwhat if?\u201d is the support for a disabled or special needs beneficiary who may be receiving government support. If the parents are gone, who will care for their disabled child? What if there are not enough assets in the estate to provide supplemental financial support, in addition to the government benefits? Life insurance can be used to fund a special needs trust to ensure that their child will not be dependent upon family or friends to care for their needs. However, if there is no special needs trust in place, an inheritance may put the child\u2019s government support in jeopardy.Here are the core estate planning documents to be prepared:Last Will and TestamentRevocable Living TrustDurable General Power of AttorneyHealth Care Declaration such as a Health Care ProxyThe SECURE Act changed the rules regarding inherited IRAs. With the exception of a surviving spouse and a few other exempt individuals, the required minimum distributions must be taken within a ten- year time period. This causes an additional income tax liability for future generations. There are strategies to reduce the impact, but they require advance planning with the help of an estate planning attorney.Reference: Bloomberg Tax (June 18, 2020) “Estate and Life Insurance Considerations During the Covid-19 Pandemic“"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Coronavirus Makes Estate and Tax Planning an Urgent Task","item":"https:\/\/www.amorusolaw.com\/blog\/coronavirus-makes-estate-and-tax-planning-an-urgent-task-white-plains-ny-new-york-ny\/#breadcrumbitem"}]}]