Even if you are not a stock investor or you don’t follow market performance like a religion, you have probably heard of the latest news on GameStop, the video game retailer.
GameStop’s stock spiked from roughly $65 a share just before this past Monday to an intraday high over $480 on Thursday before closing around $236. This stratospheric rise of the video game retailer alone is enough for an awe-inspiring financial news story. But who were buying that caused the stock to rise to such high? There is more to this story.
The rise is fueled by traders in the WallStreetBets Reddit group and caused a short squeeze for the hedge fund short sellers who have bet against GameStop and shorted its stocks. What is a short squeeze? A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to stop even greater losses, according to Investopedia. Their scramble to buy only adds to the upward pressure on the stock’s price. The Reddit group also pushed up prices of AMC and BlackBerry significantly. Trading restrictions on GameStop’s stock posed by brokerages and trading platforms angered traders and some lawmakers but also helped lowering the stocks’ prices.
The sudden surge of GameStop’s stock price created unintended consequences for funds containing GameStop. For example, two exchange traded funds, XRT and GAMR found that GameStop now accounts for 20% of their total assets. It also tests the SEC’s market manipulation rule and could have profound impact on the market in the future.
2020 is finally behind us. What is your plan for year 2021? Here I outlined some financial tips for you to put on your early 2021 to-do list to jump start the year to be a successful and prosperous one for you and your loved ones. Below are some of the essential personal financial information you will want to save and keep in handy as your reference guide throughout the year.
Adjust your retirement plan contributions for 2021
2021 retirement plan contribution limits
Plan
Maximum Deferral
Age 50 and Over Catch-up Contribution
401(k)/403(b)
$19,500
$6,500
Deductible IRA
$6,000
$1,000
Non-Deductible IRA
$6,000
$1,000
Roth IRA
$6,000
$1,000
The individual IRA contribution deadline for 2020 is April 15, 2021.
Phase out range for deductible IRA is $105,000-$125,000 for joint filing if covered by a workplace retirement plan; Phase out range for Roth IRA is modified AGI from $198,000-208,000 for joint filers.
Health Savings Account Contribution Limit for 2021:
Self-only
Family Coverage
Contribution Limit
$3600
$7200
Contribution Limit over age 55
$4600
$8200
High-deductible health plan minimum deductible
$1400
$2800
High-deductible health plan out-of-pocket maximum
$7000
$14,000
Keep in mind these important income tax facts for 2021:
2021 Income Tax Brackets and Rates:
Tax Bracket
Single Filer Income Range
Married File Jointly Income Range
10%
$9,950 or less
$19,900 or less
12%
$9,951- $40,525
$19,901 – $81,050
22%
$40,526 and $86,375
$81,051 and $172,750
24%
$86,376 and $164,925
$172,751 and $329,850
32%
$164,926 and $209,425
$329,851 and $418,850
35%
$209,426 and $523,600
$418,851 and $628,300
37%
$523,601 or more
$628,301 or more
The standard deduction
is $12,550 for individuals and $25,100 for married couples filing jointly.
2021 Alternative Minimum Tax (AMT) Exemption Amounts:
Single or Head of Household
Married File Jointly or Qualified Widow
Married File Separately
Maximum Exemption
$ 73,600
$ 114,600
$ 57,300
25% reduction if over:
523,600
1,047,200
523,600
Exemption Eliminated
818,000
1,505,600
752,800
2021 Qualified Dividend and Long-term Capital Gain Tax Rate:
Income Range: Single filer
Income Range: Married file jointly
Capital Gain Tax Rate
$0-$40,400
$0-$80,800
0%
$40,401-$445,850
$80,801-$501,600
15%
Over $445,850
Over $501,600
20%
Net Investment Income Tax:
Individuals will owe the tax if they have Net Investment
Income and also have modified adjusted gross income over the following
thresholds:
Filing Status
Threshold Amount
Married filing jointly
$250,000
Married filing separately
$125,000
Head of household (with qualifying person)
$200,000
Qualifying widow(er) with dependent child
$250,000
Single
$200,000
The Net Investment
Income Tax (NIIT) applies at a rate of 3.8% to certain net investment income of
individuals, estates and trusts that have income above the statutory threshold
amounts.
Annual Exclusion for Estates and Gifts
In 2021, the first $15,000 of gifts to any person
is excluded from tax.
Since 2018, the Tax Cuts and Jobs Act temporarily increased the basic exclusion amount for estate and gift taxes for tax years 2018 through 2025, with both dollar amounts adjusted for inflation. For 2021 the exclusion amount is $11,700,000 per individual, and $23,400,000 for a couple.
Review your Insurance policies
If your situation has changed during 2020, such as change of job, birth of a new child, or purchases of new car, house, etc., you need to review your insurance coverage or talk to your financial adviser to help you come up with proper coverage amount for your current insurance needs.
Don’t forget the deadline for individual tax filing is Thursday
April 15, 2021.
Gather and organize all your
paperwork such as W-2 forms, bank statements, mortgage payment statements,
property tax receipt, business expenses, investment statements from your
broker-dealers, charity donation receipts, etc. for your 2020 tax filing.
A couple of events that you might want to keep an eye on:
House Ways and Means Committee Chairman Richard Neal plans to reintroduce in the new Congress the Securing a Strong Retirement Act of 2020, which would boost the required minimum distribution age from 72 to 75. In 2019, the Secure Act passed by congress has pushed the age that retirement plan participants need to take the required minimum distributions (RMD) from 701/2 to 72. If this new bill passes, it would create more favorable financial planning opportunities to people contributing to various retirement plans.
Another thing to watch for is for families with kids applying for college in the fall 2021. The dates and places of taking the SAT/ACT had been changed a couple of times last year by the institutions which offer these tests due to the pandemic. Since the pandemic is still going on parents need to make sure their high school kids know the exact dates and places of taking these tests. Parents and students can go to www.collegeboard.org to check out the latest updates on SAT test or www.act.org for ACT tests.
As I am reflecting back on year 2020 there is no doubt that coronavirus pandemic is the biggest theme of this year. The pandemic has not only disrupted global economy, it also changed our lives more or less. Last December when I wrote an article on looking into year 2020, “uncertainty” and “change” were the two words that came to my mind at that time. This time, I think “resilience” and “recovery” will be the two theme words of year 2021.
Resilience is the US economy which bounced back from its second quarter low on a tear. Resilience also is human spirit that carries us over despite lock-downs and remote working/learning. Now that we have clinically proven effective vaccines we see light at the end of this dark tunnel. We are entering the stage of recovery.
But we are still vulnerable coming out of this pandemic. Recent weeks’ numbers of US initial jobless claims were still stubbornly high, pointing to a slow-down and weak recovery well into the year 2021. Many economists pointed out that it is highly likely that we will not have a full economic recovery until after the end of year 2022.
It is hard to predict the short term trend of the stock market. Due to the pandemic caused economic downturn, the Fed and the government will continue to support the US economy with fiscal and monetary policies at least in the short term. These temporary stimulus policies in turn will most likely sustain the stock market’s high valuations in much of the year 2021.
We probably will not see drastic changes in tax law in 2021 if the Republicans win the Senate majority. However, several rounds of economic stimulus packages passed during the Pandemic widen the government deficits. Therefore, mid-term to long-term there could be quite significant changes to current tax law, especially rolling back of 2017 tax cuts for the rich and corporations.
When it comes to personal finance, there are a few strategies for you to plan for year 2021. That is, budget and track your spending; manage your debt and increase your emergency reserve.
If you have not had money set aside for rainy days, start building your rainy day reserve fund as soon as possible. Build the fund to cover at least three months of family expenses. If you already have three months of expenses of emergency fund set aside, preferably in savings account or money market fund, increase the reserve to cover six months of expenses. If personal financial situation allows it, it is better to increase the emergency reserve to cover 12 months of expenses at this time.
The reason I am recommending the increase in emergency reserve is because entering 2021 there are still many uncertainties, including possible continued pandemic, relatively high stock market volatility and weaker than expected economic recovery that may all affect your job and financial stability. It is wise to have a larger than usual monetary cushion to carry you over during these unprecedented times. And if the economy recovers much faster than we predicted, then you will need less emergency reserve and have some extra money to take advantage of the opportunities emerged in the financial market and elsewhere in the coming year.
Thanks for reading and have a very
happy holiday season!
It is that time of a year again: holidays and shopping. I bet tax is probably the last thing on your mind right now. Or, you may think that it is a bit late to make any tax move by now. Well, that is not the case this year.
We know that many tax payers have stopped itemizing their charitable donation deductions due to substantially higher amount of standard deduction since the enactment of The Tax Cuts and Jobs Act (TCJA). But, there is a bonus to tax payers this year due to coronavirus relief bill passed by Congress. That is, your can deduct your eligible charitable contributions in the amount of $300 for individuals and $600 for a couple “above the line”. Above-the-line deductions benefit you whether or not you itemize your deductions. Above-the-line deductions refer to those deductions such as retirement plan contributions that reduce your adjusted gross income (AGI).
So, what is so special about
adjusted gross income? Quite a lot according to a blog post by TaxAct. Every
dollar that reduces your AGI reduces your taxable income. And it may help you qualify for other
deductions, too. Various credits are based on your adjusted gross income. In
some cases, even a small adjustment may help you qualify for a credit or other
tax perk that you would not receive otherwise.
To be eligible
for this deduction, your charitable contributions must be in the form of cash,
check, or credit card payments and you must have the proper documentation, i.e.
receipts of your donations. Unfortunately, you may not deduct the clothes you
donated to your local goodwill store after you cleaned your kid’s closet.
I know that you are making that holiday to do list, checking it twice, or several times. Be sure to put this simple tax move on that list. Not only will you help your fellow citizens, your generosity may also lower your tax bills in the coming year.
After some heavy rain and low-40
degree days fall has finally come to Dallas.
It signals the coming of holiday shopping, family gathering, end-of-year to do
list and, annual enrollment. November is the month that health insurance for
individuals and families sponsored by either government or many private
employers are open for enrollment.
For people who will not have private insurance, the 2021 Open Enrollment Period starts from Sunday, November 1 and runs through Tuesday, December 15, 2020. You can go to HealthCare.gov to get information on what Health Insurance Market Place is and how it works. The website also let you browse and compare health plans available for 2021 enrollment. Starting in 2014, taxpayers with low to moderate annual incomes may be eligible for a Premium Tax Credit if they purchase health insurance coverage through the Health Insurance Market Place.
If your employer continues to
sponsor group health insurance as an employee benefit, you probably have
already received enrollment notice from your employer by now. Whether this is
your first enrollment or your fifth or tenth time, you need to take some steps
to ensure you and your family get the maximum benefits while minimize future
costs.
Many medium to large private employers offer their employees a benefit program including a flexible spending account(FSA) under which the employee can elect a reduction in compensation and requests those dollars be allocated to the purchase of specific benefits. The benefits that can be provided include health insurance premiums and out-of-pocket payments such as co-pays, coinsurance payments, eyeglasses, and dental care. The maximum employee contribution to health FSA will be capped at $2,750 for 2021.
The election to contribute to employee FSA is made annually before the beginning of the year for which the election will be effective. The salary reductions used to fund specific benefits in the flexible spending account are not included in the employee’s gross income and are not treated as wages for Social Security taxes. If the money allocated to your health care flexible spending account is not used by the end of the year, it is forfeited. So, the first thing you need to do is to look back and review your family’s health related costs in 2020. Or better if you can look back two to three years and detect a spending pattern for your family’s medical expenses. Doing so gives you an idea of how much you have spent on family’s healthcare and where those dollars went. Then you can elect the amount of FSA salary reductions more aligned with your family’s circumstance. Some employers, however, allow their employees up until March 15th of the following year to spend funds in their FSA. So, be sure to check your FSA’s spending deadline with your employer’s human resource department.
Next, review your current coverage and elections, and then consider the available plans to determine your needs for 2021. All employer-sponsored health plans are required by law to provide their employees the disclosure of important plan information, called The Summary Plan Description (SPD). The SPD contains important information such as how the plan operates, what benefits are provided, when an employee becomes eligible to participate in the plan and how to file a claim, etc. Another piece of document you can obtain from your employer is Summary of Benefits and Coverage (SBC). SBC helps you compare your coverage options across different types of plans.
Among the plans sponsored by your employers, there probably is a type of plan called high-deductible health plan. If you are financially able I would argue for enrolling in this type of plan to take advantage of Health Savings Account (HSA). HSA combines a high deductible health plan with a savings account. According to HealthCare.gov, for 2020, the IRS defines a high deductible health plan (HDHP) as any plan with a deductible of at least $1,400 for an individual or $2,800 for a family. An HDHP’s total yearly out-of-pocket expenses (including deductibles, co-payments, and coinsurance) cannot be more than $6,900 for an individual or $13,800 for a family. (This limit doesn’t apply to out-of-network services.) In addition, to be an eligible individual and qualify for an HSA, you are not enrolled in Medicare.
HSAs have several tax advantages. One of them is that the contributions are an above-the-line deduction reducing adjusted gross income, so taxpayers do not need to itemize their tax deductions to benefit from HSA. Another advantage is that earnings on the contributions to an HSA are not taxed currently, and the distributions used to pay for qualifying medical expenses are tax-free. Qualified medical expenses include:
Medical expenses not reimbursed by health insurance policy
COBRA health insurance premiums
Long-term care premiums
Health insurance premiums if an individual is receiving unemployment compensation
The 2021 individual HSA
contribution limit will be $3,600. The limit for family HSA contribution will
be $7,200. If you will be 55 before the end of 2021, you can contribute an
additional $1,000.
There is no doubt that healthcare
related costs are staggering in the US. You will be amazed that even
improving your health slightly can potentially lower your healthcare costs
tremendously.
Part of a financial advisor’s job is to help clients manage the risks that could derail their financial plans or harm their financial well being. Healthcare planning is an important part of this risk management.
As generation X gets older their health is increasingly having more significance on their wealth. To older gen Xers, aging is potentially more detrimental to their wealth than stock market volatility.
According to a CDC report, 78% of US adults 55 and older have at least one chronic condition (Source: CDC/National Center for Health Statistics: National Health Interview Survey). If you are one of the gen Xers and have not started healthcare planning, now is a good time to start preparing for the unavoidable health issues later on.
When it comes to healthcare planning people usually thinks it is all about comparing and buying health insurance. In fact, health planning is a holistic process. It starts with an intentionally planned wellness regime that takes care of not only your physical well being but also your mental/emotional well being. Your wellness program needs to be reasonable, fitting your lifestyle and easy to stick with.
An integral part of your wellness plan is preventative care such as once a year physical examination. As people get older, health related expenses increase, too. Major medical bills are the leading cause for personal bankruptcy in US. It is more cost effective to prevent an illness than treating it. So, if you are 40 or older do not procrastinate on your annual physical.
What is more, the current pandemic also highlighted the fact that healthcare planning is a critical part of one’s risk management. The potential costs of a person hospitalized with coronavirus could be in the range of $21,936 to $38,755 if that person uses in-network service providers; if using out-of-network providers, the costs could be even higher, potentially costing you $42,486 to $74,310 (sources: FAIR Health). Therefore, it is urgent to identify in advance which in-network hospital will be your go-to hospital under your current health insurance plan.
If, unfortunately you have incurred coronavirus related medical bills, ask the health provider(s) to provide an itemized charge to make sure it does not have charges waived by CARES Act, such as diagnosing tests and co-payments. Alternatively, you can go to ahip.org/health-insurance-providers-respond-to-coronavirus-covid-19 to find out what health insurers are offering to consumers during the pandemic.
A comprehensive healthcare plan also includes a few important legal documents, such as power of attorney and medical advanced directive. If you have drafted these documents a while ago, now is the time to update them to reflect the current and changing situations.
Poor health undermines our ability to work, thus reducing our earnings potential. Poor health also hinders our ability to enjoy life. It is imperative that gen Xers start taking care of their health now to live a quality life down the road.
This is the third installment of our series of articles on teen and money. These days, college application becomes more and more complicated and time-consuming. Not to speak that sending your child to college is no small task given the cost of higher education. Even worse is the coronavirus pandemic we are in right now raise not-before-seen uncertainties of college applications for high school seniors graduating spring 2021.
We know that 2020 is an unusual year for colleges and universities big or small, public or private. Amid the coronavirus pandemic, some schools are discounting tuition costs for various reasons. For example, Princeton University announced a 10% cut in tuition costs for the full year because students will only be allowed on campus for one semester or less. Others are cutting tuition costs in order to boost freshman enrollments. Therefore, parents need to do a little research if the colleges their teens are interested in have made or will make such move in terms of college costs.
In addition, several trends related to college application and admissions have emerged since the onset of this pandemic. According to some college application surveys taken after the pandemic starts students surveyed generally say they are less likely to attend schools far away from their homes. If this trend continues even after the pandemic is over, it could benefit the students who are willing to look outside their state borders and apply to schools a bit farther from their home state. Generally speaking, many colleges and universities are willing to give out some aid money to attract out-of-state students.
Another trend emerged from the pandemic is more incoming fall 2020 students have asked colleges for a deferral because of limited college experiences due to remote learning. It was estimated by college application experts that among some elite universities approximately 10% to 15% of incoming freshman class would defer their enrollments. Could this mean more fierce competition among your student’s peers to get into their dream colleges or universities next year? The impact of the deferments on college admissions for 2021 applicants remained to be seen.
Unlike the past, the campus touring is drastically different this year. Some college campuses are closed for in-person learning and consequently these schools opt to offer only virtual campus tours. This alters the experiences parents and students get from what they get from traditional campus tours. Consequently, parents and students need to adjust their strategies to make the most of these virtual tours. One way to find out which schools offer virtual tour is to check with your student’s high school counselor.
Lastly, some previously scheduled standardized tests such as SAT and ACT got canceled due to health concerns. If your student is not happy about his or her test results taken before the pandemic, they need to coordinate the timing of their application with the next available SAT or ACT test they plan to take. You can go to collegeboard.com or ACT.org to check the test schedules.
All in all, parents and their high school senior students are facing a different college application landscape this fall. They need to adjust their strategies and tactics accordingly in order to achieve the best results.
In our June article we talked about
whether or not parents should allow their college aged children to have their
own credit cards. This time we will continue our teen and money topic. As
parents we want to raise financially responsible children. If our last article
is geared toward older teens, in this one we will show parents a good way to
allow their younger teens a real-life chance of managing their own money.
Have you thought about allowing your
teens to have their own bank accounts? Some banks offer kids or teen
checking/savings account designed for their young customers.
In our family, our two teenage daughters do some basic chores, not expecting getting paid. Purposefully, my husband and I asked them to do a few extra household chores in exchange for allowance money. They are getting paid twice a month. For this reason, my husband and I set higher standards of the quality of the job they do than the basic chores they are expected to do. At the same time, I opened teen savings account for them at a bank so that their “wage” goes to the bank accounts in their names. We also set up accounts for them at Mint.com, an online personal finance management website and linked their bank accounts with their Mint.com accounts.
Part of our strategies of teaching
them financial responsibility is to give our daughters great freedom to spend
their money however they want unless the purchases are explicitly banned by us.
In the past, when they go out with friends to places, like mall, they would ask
us for some money. Since having their own bank accounts, they don’t have to
argue how much money they need to bring with them anymore. They can just take
their bank debit cards with them and go.
As expected, during the first couple of months they managed their money poorly. They made a few big purchases and their bank accounts depleted quickly. Then, they have to wait for their next “pay” deposit even if they see something they really want to have. After a while they started to learn to budget and save for “big ticket” items. And they also learnt to postpone consumption so that they leave some money in the bank in case of “unexpected” needs. They are learning these essential personal finance management skills all by themselves without me or their dad to sit down and talk them into doing so.
One of the features of these teen
bank accounts is that parent can be a co-owner. This allows parents to monitor
and supervise while giving their teens freedom to manage their money. This
should assuage concerns of some wary parents who want some control on their
kids’ spending.
For interested parents, I will
compare some essential features of the checking accounts three banks offer for
their teen customers. If you do not bank with any of them, call your own bank
and ask them if they offer such accounts.
Bank of America
Capital One
Chase Bank
Teen Checking Account and Interest Rates
yes
Yes 0.1%APY
yes
Minimum to Open or Keep
Call to verify
$0
Call to verify
Monthly Fees
$0 if under 24
$0
$0 if under 18
Allow Parental Supervision
yes
yes
yes
Debit Card
yes
yes
yes
(Sources: official websites of BoA, Capital One Online Bank and Chase Bank)
The information in the table above gives you a glimpse of what the banking products for teens are out there. Don’t agonize about which one to choose, your goal is to let your teens learn to manage their money responsibly. Good luck!
Parents with college age children often face a dilemma: should we allow our kids to apply for a credit card of their own? If yes, what if they become irresponsible and rack up credit card debt? These are the legitimate concerns parents should have.
On one hand, young adults need to build their own credit history. With good, established credit history young adults could get favorable financial treatment when someday down the road they need to apply for loans to purchase a house or a car, or rent an apartment of their own. Therefore, it is beneficial for college students to have their own credit cards and build good credit scores by using them responsibly and pay the credit card companies in full and on time every month.
On the other hand, some of these students are still in their teen years, and the freedom of having a credit card to use is too tempting. It is not uncommon for college students to abuse credit cards and accumulate debts that they may hide from their parents, causing financial damages to themselves and their parents.
So, after stating the pros and cons of giving college students a credit card of their own, what can parents do?
This advisor thinks that there are several steps which parents can do to maximize the benefits of letting your college age kids have their own credit cards while minimize its potential financial harms.
As a parent, you need to start fostering good financial habits of your children early, specifically, the habits of budgeting and spending within their means. Talk to your teenage children about financial responsibility and the harm of abusing credit cards long before you allow them to have one.
If you are still not confident about your children’s ability to handle their personal finance, alternatively, during their freshman and sophomore years you can give them debit cards to use. That way, you can monitor their spending while teach them how to spend responsibly.
Another option of giving your
college students a chance of building their credit history is for parents to
add them as authorized users of parents’ credit cards. But, parents be aware,
you are ultimately responsible if your children rack up large credit card debt.
So parents need to think it through before adding your kids as authorized
users.
If your kids demonstrate financial responsibility during his or her freshman and sophomore years in college, then you can decide if they can apply for their own credit cards in junior or senior year.
One kind of credit cards students and parents may consider is so called secured credit cards. These cards can be ideal for college students who have no credit history or income. These cards are secured with a cash deposit, i.e. $300 or $500, from the card owner. Other than that, it works like a regular credit card. This kind of card is not a debit card. The cash deposit serves as a backup, not a payment for the card owner’s credit card bill. Students still need to pay their monthly credit card bill on time.
Ultimately, it is parents’ responsibility to know their children well and provide continuing guidance and supervision throughout their children’s college years in order for the kids to reap the benefits of building good credit history in college.
For many in the generation X and millennial age groups they tend to have some misconceptions and procrastinate when it comes to estate planning.
The first misconception about estate planning gen X and millennial hold is that estate planning is for older folks. The second misconception is that estate planning is only about monetary assets; therefore, people with few financial assets need not to bother with it.
In fact, there is nothing further more from the truth than these misunderstandings. Estate planning is critical and beneficial for people old and young, and even more so in light of the current pandemic crisis we are in. Since the breakout of coronavirus pandemic some gen X and older millennial started to have sense of urgency and concerns about the lack of estate planning. They are concerned about what will happen to them and their family if they become seriously ill or worse.
So, what is estate planning? It involves using wills, trusts, insurance policies, and other legal documents to give instructions on what happens to your personal property, your tax, care of your young children and/or pets, your health care arrangements and final arrangements upon your death, etc.
As more and more states reopen after “lock down” people gradually venture out and ease back to “normal” life. Still, many people are cautious and avoid “non-essential” human interactions as much as possible.
Traditionally, in order for a will to be valid in Texas, a typewritten will must be signed by the person who makes the will and two witnesses must be in presence. In these difficult times, this requirement poses great challenges for many including gen X and millennial who have never had these estate planning documents in place and need to set them up right now. So, what can a gen X or millennial in need of an enforceable will do while observing social distancing?
Though in July of 2019 the Uniform
Law Commission has approved the Uniform Electronic Wills Act, also known as the
E-Wills Act, which allows probate courts to recognize electronic estate
documents as being fully valid and enforceable, no state has enacted this law
yet, unfortunately.
On April 8, 2020, Governor Abbott issued an order temporarily allowing regular notaries to notarize the following documents by video conference: durable powers of attorney, medical powers of attorney, directives to physicians, and self-proving affidavits for Wills.
The above order, however, does not eliminate the requirements for witnesses to be physically present. This suspension is in effect until terminated by the Office of the Governor or until the March 13, 2020 disaster declaration is lifted or expires. Documents executed while this suspension is in effect, and in accordance with its terms, shall remain valid after the termination of this suspension.
Further more, according to the announcements published on the website of the Texas Secretary of State, the following conditions shall apply whenever this suspension is invoked:
A notary public shall verify the identity of a person signing a document at the time the signature is taken by using two-way video and audio conference technology.
A notary public may verify identity by personal knowledge of the signing person, or by analysis based on the signing person’s remote presentation of a government-issued identification credential, including a passport or driver’s license that contains the signature and a photograph of the person.
The signing person shall transmit by fax or electronic means a legible copy of the signed document to the notary public, who may notarize the transmitted copy and then transmit the notarized copy back to the signing person by fax or electronic means, at which point the notarization is valid.
Alternatively, a holograph will can
be used in place of typewritten one in emergency situations. A holographic will
is a handwritten will which is made by a person, or in legal term a testator,
entirely in the testator’s own handwriting and signed and dated by the
testator.
Another valuable tool in a person’s estate planning repertoire is letter of intent. Letter of intent is not a legal document per se, but it is an invaluable piece of your estate planning documents. It usually complements a person’s will. As the name implies you can use this document to tell your loved ones what your assets are, where to locate them and how to access them, etc. You can specify your non financial wishes in this document as well.
Comparing with older people, gen X and millennial have relatively simpler estate planning needs, and the above planning techniques can be some of the options gen X and millennial utilize during these unprecedented times. After the society fully returns to its pre-pandemic way of life, gen X and millennial can revise and expand these documents with the aid of an advisor and/or lawyer.
