From case law approving an alternative pleading model for trust beneficiaries to avoid triggering a no-contest clause, to COVID-19 relief measures, we have  seen significant developments in estate planning and business law recently. To ensure that you stay abreast of these legal changes, we have highlighted a few noteworthy developments and analyzed how they may impact your estate planning and business law practice.

Legal developments we will cover:

• IRS Regulations Clarify Treatment of Excess Deductions Passed on to Beneficiaries
• New Interim Final Rule Authorizes PPP Loan Increases for Partnerships
• Virginia Supreme Court’s Ruling on No-Contest Clause Case
• Valuation Discount Disallowed for Lack of Control
• IRS Issues FAQs Regarding COVID-19 Relief for Estate and Gift
• Expenses Paid Using PPP Loan Proceeds Later Forgiven Not Deductible
• Congress Passes PPP and Health Care Enhancement Act
• Temporary Relief for Small Businesses Seeking Funding Through Crowdfunding

Recently, many have begun planning for the possibility that they may fall ill and may not be able to conduct business as usual. The most commonly thought of planning device for such situations is the power of attorney (POA). A POA is a document whereby a “principal,” the person signing the document, gives certain powers to an “agent,” the person designated to act on behalf of the principal. A POA allows an individual to name another person to act on their behalf during times of incapacity, for a particular purpose, for a specified duration of time, or even to simply execute everyday dealings for the individual. It all depends upon the type of POA established and the objectives sought.

Selecting the right POA document for the situation is critical for effective execution of the principal’s wishes. Some POAs give agents the power to make healthcare decisions during the principal’s incapacity. Others allow the agent to sign legal documents or financial paperwork for an unavailable principal. Some last until incapacity, others last until the principal’s death. The general actions an agent is permitted to take depends solely on what the POA has dictated. There have been many occasions where the bounds of the four corners of a POA were tested.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020, is designed to provide quick and substantial relief to individuals and businesses affected by the economic shutdown in response to the spread of COVID-19. Several CARES Act provisions provide temporary tax relief for individuals and businesses, as well as enhanced tax incentives designed to encourage charitable giving.