The pandemic changed everything about estate planning – here’s what you need to know to protect your family in 2024 and beyond
The COVID-19 pandemic fundamentally reshaped how Americans think about estate planning, creating unprecedented urgency around health directives while simultaneously accelerating the adoption of digital technologies in legal practice. As families witnessed the sudden impact of COVID-19 on even their healthiest relatives, many were caught off guard when loved ones became incapacitated or passed away without proper estate plans in place. This wake-up call, combined with the dramatic shift to remote work arrangements, has created new challenges and opportunities that require updated approaches to estate planning documents.
Health Scares Highlighted Critical Gaps in Estate Planning
One of the most profound shifts post-pandemic has been the rising importance of health care directives and living wills, as many witnessed loved ones face medical emergencies without clear guidance for their care. The pandemic exposed how quickly health situations can deteriorate and how crucial it is to have proper advance directives in place.
Health care directives express your wishes about medical decisions if you are unable to make them for yourself, and while these are often needed to make difficult “end-of-life” decisions, they are also important in less dire situations. The health care power of attorney is one of the most important documents that an individual may create, with anyone over the age of 18 needing one so that there is someone authorized to make health care decisions on their behalf, especially as it’s becoming increasingly common for college-age individuals to create these documents.
Key health-related documents that gained new importance during the pandemic include:
- Advanced health care directives with specific COVID-19 treatment preferences
- HIPAA releases allowing family members to access medical information
- Living wills with clear end-of-life instructions
- Do-not-resuscitate orders when appropriate
Remote Work Revolution Creates New Estate Planning Challenges
The shift to remote work has created entirely new categories of assets and considerations that must be addressed in modern estate plans. Digital assets, unlike physical property, aren’t automatically accessible to heirs, and many platforms lock or delete accounts upon death, making it impossible to recover funds, important documents, or sentimental files without a plan.
Today, no estate plan is complete without accounting for your ever-expanding digital fingerprint, as planners need to account for not only their tangible assets, but also their digital assets. This includes:
- Work-related digital accounts and cloud storage
- Cryptocurrency and online investment accounts
- Social media profiles and digital photos
- Email accounts containing important business communications
- Software licenses and digital subscriptions
Establishing power of attorney for digital assets through legal documents that authorize someone to manage your digital affairs, combined with including legal documents such as powers of attorney that provide consent for access, has become essential for remote workers who may have significant digital assets tied to their livelihood.
Technology Transformed How Estate Planning Gets Done
Technology revolutionized estate planning during the pandemic, with limited in-person services leading to digital tools stepping in, offering solutions like online will creation platforms, e-signatures, and virtual consultations with estate attorneys. Emergency executive orders authorized the witnessing of documents such as wills, health care proxies and trust agreements via audio-visual technology, with states like New York temporarily allowing virtual notarizations and electronic signatures on wills and trusts.
The urgency for virtual will execution increased in 2020 as people began to worry about potential health consequences if they contracted COVID-19, with individuals wanting to make sure their estate was in order but not feeling they could safely prepare a will in-person with an attorney, and even as pandemic restrictions have eased, virtual will execution remains a popular and convenient option.
Why Professional Guidance Matters More Than Ever
The complexity of post-pandemic estate planning – combining traditional concerns with new digital realities and health considerations – makes working with an experienced wills and trust attorney more important than ever. At Long Island-based firms like Fratello Law, attorneys focus on “planning peace of mind with experience and compassion,” taking the time to understand each client’s individual needs and building lasting relationships with clients that span generations.
Professional estate planning firms take pride in focusing on each client’s individual needs and taking the time to understand those specific needs, operating as small firms with big hearts that welcome the opportunity to meet clients and discuss their legal concerns. This personalized approach is particularly valuable when navigating the new complexities introduced by the pandemic.
Essential Steps for Modern Estate Planning
To ensure your estate plan addresses both traditional and post-pandemic concerns, consider these critical steps:
Update Health Directives: Ensure your living will outlines your preferences for medical treatment if you become unable to communicate them, paired with a health care proxy who makes medical decisions for you.
Address Digital Assets: Identify what digital assets you have, determine who will have access to them, and provide necessary login information while updating your will or living trust to include language specifically addressing digital assets.
Plan for Remote Work Realities: Consider how location independence affects your estate planning needs, including assets in multiple jurisdictions and the need for documents that work across state lines.
Regular Reviews: Schedule appointments with your estate planning attorney at least every 3-5 years, but make immediate appointments when there are major changes in your family structure or among those named in your estate planning documents.
The New Reality of Estate Planning
The pandemic highlighted the fragility of life and reshaped priorities worldwide, pushing estate planning into focus alongside other financial and health-related matters. The volatility of the pandemic caused millennials to be more introspective and embrace estate planning, with the percentage of 18- to 34-year-olds with wills jumping from 16.4% in 2020 to 27% in 2021, citing the COVID-19 pandemic as their reason for wanting to get their affairs in order.
The pandemic taught us that unexpected events can happen quickly, making it crucial to have comprehensive estate plans that address both traditional concerns and modern realities. Whether you’re updating existing documents or creating your first estate plan, the post-pandemic world requires a more thoughtful approach that considers health scares, digital assets, and the changing nature of work and family life.
The pandemic has reshaped how we think about the future, urging us to prioritize preparedness, as estate planning is not just a practical tool—it’s an act of care for yourself and your loved ones. In this new landscape, working with experienced professionals who understand both traditional estate planning principles and emerging challenges is essential for protecting your family’s future.