COVID-19 has had a profound impact on almost all aspects of life, but one facet remains unchanged: the importance of estate planning. It may be difficult to find the time to focus on estate planning when there are so many other issues to contend with. But there are compelling reasons for – and potentially significant benefits to be gained by – taking action now.
COVID-19 has created significant hardships for individuals, businesses, and family offices, not the least of which may be business and investment losses. A “disaster relief” provision, which has existed for decades, allows individuals and family offices to take certain COVID-19-related business and investment losses incurred in 2020 and accelerate them into your 2019 tax returns.
Much of the success of your family business or private company has to do with the efforts of one or two key employees, and you want to reward them. A popular approach is offering stock-based rewards which can be delivered either in actual shares of stock or in cash. These plans allow private companies to attract and retain talent while allowing employees to share in the company’s success.