Happy 2025! As we meet with clients this year, we are often asked “what’s new in estate planning”?
There are a few important things!
CTA. First, the Corporate Transparency Act has been in the news a lot lately. In light of recent federal litigation, “reporting companies” are not currently required to file beneficial ownership information with FinCEN, and are not currently subject to liability if they fail to do so. However, reporting companies may continue to voluntarily submit beneficial ownership reports. Given the likelihood of future developments that might change the status quo, reporting companies must closely monitor legal developments for the Corporate Transparency Act.
N.M. MOST. Second, we are often asked if clients should sign a New Mexico Medical Order for Scope of Treatment (“MOST”). If you are an existing client of our firm, please do not sign a MOST form without first speaking with us. The MOST form is an advance health care directive that overrides prior health care document you signed (for example, the Durable Power of Attorney for Health Care in your file at our office).
When might a MOST be appropriate to consider (after consulting with our firm and with your medical provider)? We concur with the National Institute of Aging that a MOST (or POLST or MOLST) is typically created when a person is near the end of life or critically ill and understands the specific decisions that might need to be made for final health care treatment. (https://www.nia.nih.gov/health/advance-care-planning/advance-care-planning-advance-directives-health-care). Even the New Mexico Most webpage (https://www.nmmost.org/patients-and-families) states clearly that the New Mexico MOST program is “not for everyone” and is “designed for individuals who are seriously ill or have life-limiting illnesses." They further state that for many New Mexico residents, traditional health care documents are the most appropriate. Unfortunately, clients are visiting our office having signed MOST documents with their physicians sometime after signing health care documents with our firm. Not only are the clients not terminally ill or at the end of their lives, they had no idea they “undid” the documents that they hired our firm to prepare for them. The documents we prepare name an agent to act on your behalf, who can make decisions based on the circumstances at the time. Unfortunately, when a person is terminally ill, the facts and circumstances can change not only daily, but sometimes hour by hour or minute by minute. A designated agent can process the changing circumstances and make decisions based on current information.
Relatedly, we will soon be sharing a post on why our office recommends not sharing signed estate planning documents (including health care documents) unnecessarily.
Notary Block Laws Changed. Although not really “new” this year, New Mexico fairly recently changed the format for notary blocks. Unfortunately, we continue to see documents that are “notarized” with the old format. We encourage anyone who is a notary or who employs a notary to become up to date on the current laws and formats.
And of course . . . We would be remiss if we did not remind everyone to update your Statutory Financial Power of Attorney every three years. Please also take some time to review your Personal Effects List and make any appropriate updates.
Best wishes for a happy, healthy, and prosperous 2025!
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