Trends in Estate Planning for 2023
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2023 Trends in Estate Planning
Estate planning is a dynamic field, with changes driven by legislative shifts, advances in technology, and evolving family structures. So far, in 2023, the arena of estate planning in Chicago and across the United States has a new set of challenges and opportunities. These estate planning trends help keep people abreast of the latest ways to plan for your future. This article aims to explore these trends, offering insights that may guide you in updating your own estate plans. With legal advice from Chicago estate planning attorneys, you can navigate this complex legal landscape more confidently.
Five Biggest Trends in Estate Planning
1. Increase in Digital Assets
A trend that cannot be ignored is the growing importance of digital assets in estate planning. Your digital footprint, including social media accounts, digital currencies, and online business interests, needs as much protection as your physical assets. Estate planners suggest incorporating digital assets into your will or trust, ensuring a comprehensive and up-to-date estate plan.
2. Remote Notarization and E-Wills
In an increasingly digital world, remote notarization and electronic wills (e-wills) have begun to gain traction. The global pandemic accelerated the acceptance of remote notarizations, allowing estate planning attorneys in Chicago to serve clients effectively without in-person interactions. However, it’s crucial to understand the local laws as they pertain to e-wills to ensure their legality and enforceability. For example, some states may have specific requirements about witnesses being physically present during the signing of a will, which could complicate the use of e-wills.
3. SECURE Act 2.0
The SECURE Act 2.0 has garnered attention for its comprehensive changes to retirement planning. But what may be less evident is the act’s impact on estate planning, particularly for those seeking to optimize their long-term financial security.
One of the significant shifts brought by the SECURE Act 2.0 is the extension of the age for Required Minimum Distributions (RMDs) from retirement accounts. Pushing the RMD age to 75 provides a longer window for tax-deferred growth and a corresponding increase in estate value. This change opens up planning opportunities to minimize tax liabilities and maximize asset growth, topics that estate planning attorneys in Chicago can address comprehensively.
4. Planning for the Modern Family
In 2023, one of the salient trends in estate planning is the increasing focus on creating inclusive plans that cater to the diverse structures of modern families, including those in the LGBTQ+ community. Traditional estate planning often relied on models that did not adequately represent the complexities and nuances of contemporary family lives. With legal recognition of same-sex marriages and increasing societal acceptance, there’s a heightened awareness of the need for specialized planning to address unique legal and financial challenges.
5. Importance of Health Care Directives
Given the uncertainties of life, healthcare directives are gaining prominence. A healthcare directive allows you to specify your preferences for medical treatment and appoint someone to make healthcare decisions on your behalf should you become incapacitated. This is an essential component of comprehensive estate planning in Chicago, ensuring that your wishes are respected even in dire circumstances.
Estate planning is not a static process; it requires periodic updates and revisions to align with emerging trends and personal circumstances. From digital assets and remote notarization, the landscape of estate planning is shifting rapidly. For those interested in staying ahead of these changes, consultation with experienced estate planning attorneys in Chicago, like Anthony J. Madonia & Associates, Ltd., is indispensable.
To keep your estate plan up to date with the current estate planning trends, we encourage you to seek estate planning attorneys. Contact us today for a consultation to discuss your specific needs and ensure a secure, well-planned future.