It’s the last weekend of October. That means it’s almost Halloween! Or, even more importantly it’s National Estate Planning Awareness Week! Whether you’re celebrating spooky season or gazing fondly at your estate planning binder, it’s time for a recap on all of the elder law news that happened this month. This month, it’s all about planning for the young, the rich and those without kids.
Estate Planning for Millennials and Gen Z
The Wall Street Journal talked about the importance of estate planning for younger generations. Estate planning is important even if you few assets to consider and don’t plan on dying any time soon. The article even goes so far as to suggest that estate plans can be useful as early as 18. It also encourages young people to think about planning for incapacity, or who would care for pets in the event you died, rather than focusing on monetary figures. An article from Yahoo! Finance discusses other considerations when thinking about your assets upon your death. For example, this article contemplates who do you want at your funeral? What are your account passwords? Who will burn your harmless (but potentially embarrassing) journal so your family doesn’t read it all? The article encourages providing clarity to family and friends by making your wishes clear.
Special Estate Planning Considerations for Those Without Kids
For many people who don’t have kids, there are questions of who their beneficiary’s should be, who will administer their estate and who will take care of them as they age. An AARP study found that only half of childless people age 50+ who live alone have a will. Those who die without a will, will be subject to intestate succession rules in their state. The Wall Street Journal took a look at “the laughing heir,” a new term for people who unexpectedly inherit money from a relative who never had kids.
A growing number of Americans are also beginning to live alone as they age. This isn’t a problem unique to those without children, but the questions contemplated in this article from KFF Health News can certainly be exacerbated for those who have no children: “Who can I call on for help? Who can make decisions on my behalf if I’m unable to? How long will I be able to take care of myself, and what will happen when I can’t?” Many of these questions can be answered in a solid estate plan, including powers of attorney that plan for incapacity.
Estate Taxes
With the election looming and the estate tax exemption drop getting closer and closer, everyone is talking about estate tax. The IRS announced a 2025 estate and gift tax exemption at $13.99 million per person. This is up from the 2024 exemption limit of $13.61 million. Unless Congress takes further action, these high estate tax exemptions will drop in 2026 and advisors are preparing. The Wall Street Journal explains how ultra-wealthy people are preparing using estate planning. Marketwatch is talking about how this drop will effect people who may eventually have millions, but aren’t quite there yet.
There’s new speculation around who paid $7 billion in estate taxes in February in 2023. Some think it was Texas billionaire Fayez Sarofim who died in 2022. The investment manager was estimated to be worth about $1.5 billion, but his actually fortune could have actually been upwards of $20 billion due to the private nature of his investments. But, why so much? Some experts think that the estate tax payment was strategic and part of a plan to reduce future estate taxes. Others suggest that the payment can be attributed to Sarofim’s personal values.
Other stuff:
- Voters with are disabilities are fighting for more accessible polling places.
- New studies are suggest that drinking coffee regularly could lower the risk for dementia for hypertensive people.
- A new report finds voters with disabilities are feeling cast aside by presidential candidates.
- Scammers are creating fake funeral streams to steal credit card information from grieving family and friends.
- Richard Simmons, fitness guru, was laid to rest in his iconic tank top and shorts as a tribute to his fun-loving spirit and commitment to helping people stay fit.
- What would you want to tell your family and friends if you were murdered? What about the killer or the jury at their trial? This is contemplated in a “David’s Will.”
- Beginning January 1, 2025, everyone with Medicare and Medicare Advantage Part D plans with prescription coverage (MA-PDs) won’t pay more than $2,000 in annual out-of-pocket prescription costs.
- The Grateful Dead bassist Phil Lesh dies at 84