Estate Planning as C19 Continues: What You Need to Know
Dara R. Cohen
D. R. Cohen Law, LLC
Estate Planning & Probate
(801) 616-2178 dara@drcohen-law.com
As the Covid-19 pandemic persists, we are thinking about worst-case-scenarios for our
families, disabling illnesses, and mortality. Is this the right time to create your estate plan?
If you didn’t need an estate plan before, you probably don’t need one now.
If a person does not own real estate, does not have dependents, has beneficiary
designations on all financial assets, and is not concerned about incapacity planning, they do not
need an estate plan. Estate planning is less urgent than for someone with more complex assets or
dependents that would be at risk.
But everyone should have an Advanced Health Care Directive.
Everyone should have an Advanced Health Care Directive. Utah’s standardized AHCD
is easy to complete without an attorney. It allows you to name an agent who makes medical
decisions for you if you cannot communicate and makes end-of-life medical decisions.
After deciding you need an estate plan, start by understanding the difference
between a Will and a Trust.
A Will is a one-time distribution of your assets when you die. All assets controlled by a
Will must pass through the Probate Court. A Will costs less now and more when you die.
A Revocable Trust is a metaphorical shoebox into which you transfer your assets now.
You, as Trustee, manage and control your Trust while you are alive and have capacity. When
you are incapacitated or dead, the “shoebox” slides to your Successor Trustee who manages
assets for your benefit and distributes assets to your heirs. A Trust costs more now and saves
both time and money later when you are incapacitated or dead.
Consider the services offered by your attorney, including remote sessions and Trust
Funding.
Ask if your attorney provides remote sessions and/or home visits to minimize the need
for unnecessary trips outside the home.
Ask if your attorney provides Trust Funding - transferring assets into your Trust and
updating your beneficiary designations. This additional legal service eliminates your need to
visit financial institutions, brokers, insurance agents, and the County Recorder.
Revisit your existing estate plan to ensure it reflects your wishes and conforms to
new laws.
If you already have an estate plan in place, revisit the documents every 2-3 years to
review your heirs and the people you appointed to carry out your wishes.
Tax law changes in 2018 and 2019 altered estate tax limits and distributions from
retirement accounts after the account owner dies. These changes could impact your estate which
may need updating.