According to a 2015 study conducted by the National Alliance for Caregiving and AARP, approximately 43.5 million caregivers provided unpaid care to an adult or child during the prior 12 months. Those who have taken on the role of caregivers for ill or disabled spouses, aging parents, children or other loved ones with special needs are typically selfless and giving individuals who may not stop to consider their own financial and estate planning needs. It is likely that you have clients who are providing this type of care. It is essential to broach this subject with your clients to ensure they have financial and estate plans in place that address both their own needs and those of their care recipients.

As their trusted advisor, you can encourage them not only to recognize their own emotional needs and develop the skills needed to deal with the stresses of caregiving, but to take the time to create financial and estate plans, or if they have those plans in place, to reevaluate them at regular intervals. It is crucial for caregivers to ensure not only that their own future is secure, but to also create plans that provide for their families and their care recipient if something should happen to them. The following are some suggestions about how you can help clients who are caregivers.

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As your client’s trusted advisor, you may be the first person the family turns to when a family member or loved one passes away. Although it is important for your client to contact us soon to start the process of estate or trust administration, the shock and grief of losing a loved one are often overwhelming. Sometimes, family members simply need a brief respite before addressing these legal matters.

However, there are several practical and legal considerations that the person named as the executor of the estate or trustee of the trust should address in the initial weeks following the death, prior to the administration of the estate or trust. During this stressful and emotional period, your client may forget about certain tasks which may lead to problems if left undone, and there are important legal considerations your client must heed. Here is a list you can provide to your client of some important initial steps to take:

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In 2008, Congress recognized the need for the public to understand the importance and benefits of estate planning by passing House Resolution 1499, which designated the third week of October as National Estate Planning Awareness Week. Nevertheless, according to a 2019 survey carried out by Caring.com, 57% of adults in the United States have not prepared any estate planning documents such as a will or trust despite the fact that 76% viewed them as important. Many of the respondents said this was due to procrastination, but many others mistakenly believed that it was not necessary because they did not have many assets.

Estate Planning Awareness Week is a great reminder of the need to explain what estate planning is to your clients and why it is crucial for them not to delay putting an estate plan in place, regardless of the size of their estate.

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Since the enactment of the Tax Cut and Jobs Act of 2017, the utility of the irrevocable life insurance trust (ILIT) has been in question. The substantial increase in the federal estate tax exemption–$11.4 million for an individual and $22.8 million for a married couple in 2019—greatly reduced the need for estate planning aimed at lessening federal estate tax liability or offsetting estate taxes for many clients. As a result, your clients may be wondering if an ILIT is necessary.

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The 2019 estate tax exemption is $11.4 million per person, up from $11.2 million per person in 2018. According to the Tax Policy Center, only 4,000 estate tax returns were filed this year, with only 1,900 of those returns owing tax. Some industry experts estimate that less than one percent of all estates are taxable. Put another way, over 99 percent of all estates are exempt from estate tax. With the likelihood of clients having a taxable estate being relatively low right now (this is subject to change, of course), it only makes sense that clients focus on income tax planning. As a trusted advisor, you hold a crucial role in ensuring that our clients receive the best comprehensive strategy.

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If there’s one thing we can all agree on, it is that each client is unique.

Likewise, our approach to counseling these clients should be tailored to each one’s specific needs.

Let’s work together to develop special plans that fit each client’s special circumstances.

One key tool to consider is the niche trust.

Usually, when we speak about a trust, we mean an “express trust.” An express trust is a three-way relationship between the grantor, the beneficiary or beneficiaries, and the third party, or trustee. The grantor has assets he or she wishes to distribute in a specified way to the beneficiary, and the trustee holds those assets on behalf of the beneficiary.

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