Tuesday, March 08, 2011 NEET Tips
NEET Tips answers questions posed online to the NEET website
What are some last minute estate planning options?
Provided the person is still competent, traditional estate planning can be done on an expedited basis. Some attorneys are willing to turn around an estate plan, including funding of trusts, within a few days, although usually at a premium to the attorney’s standard rates. Other options include using the annual gift exclusion to make cash gifts to any number of people, and if the person is married, gift splitting should be under consideration. Also in the gifting area, payments for a family member or friend’s medical expenses or tuition payments would also be tax free, provided the payments are qualified and made directly to the institution. Gifts to charitable organizations should also be considered.
If the person is not competent, these options are probably not be available unless the person has completed a durable power of attorney for finances that specifically authorizes an agent to make gifts on behalf of the principal. In Vermont, an agent may not make a will on behalf of the principal, but there is no similar prohibition on making a trust, provided the power of attorney specifically authorizes it.
Other options may exist, but would require speaking to an estate planning attorney regarding the specifics of the situation. |