Retain some control over your assets even after your death
To declare who gets what and when
Avoid Probate
Reduce or avoid taxes
Prepare for your own incapacity
Provide for a favorite cause
II. Professionals that you may need
Estate Planning/Elder Law Attorney
Financial Planner
Accountant
III. Reasons to Review your Estate Plan
You have married, divorced, separated or remarried
A child or grandchild has been born
You have changed domiciles
There is a change in tax laws
Your assets have increased or decreased in value
Your relationship with a beneficiary has changed or a beneficiary’s needs have changed
IV. What Contitutes the Probate Estate
Real Estate in just your name
Bank Accounts in just your name
Any personal belongings owned at the time of death
V. What Constitutes the Taxable Estate
All assets included in the Probate Estate
Half of all assets held jointly with your spouse
All assets held jointly with someone other than your spouse (other than those portions paid for by the joint tenant)
Life insurance proceeds
Any gifts made within three years of death
Less a credit for funeral expenses, estate administration fees, bills owed, unpaid taxes, mortgages and liens as well as any charitable deductions
VI. Documents comprising the typical Estate Plan (not intended to be a complete list)
Will – The document which handles your affairs (both personal property and real estate) after your death. Certain roles must be defined in the will:
Executor – The person who works with the Probate Attorney in administering the will
Guardian – Person named to care for your minor children
Specific Beneficiaries – Specific items you want to leave for specific people
Residuary Beneficiaries – The person or people who is/are named to receive all remaining items in your probate estate. This is the “catch-all” provision.
Trust – A document which dictates how, when and under what circumstances people receive the income and principal of the trust
Trustee – The person or institution who is named to oversee the distribution of trust income and assets
Beneficiary – The individual or individuals named to receive the benefit of the Trust income and assets
Durable Power of Attorney (M.G.L. c. 190B, Section 5-501) – This is a document which names another person who, in addition to yourself, is allowed to handle your financial affairs (ie. Sign checks, make deposits or withdrawals, mortgage or sell your home and pay your bills
Health Care Proxy (M.G.L. c. 201D) – This is a document which names another person to make health care decisions on your behalf in the event that you are unable to make your own decision
Primary Health Care Agent – The person named to make health care decisions on your behalf in the event that you are unable to make your own decisions. This person is typically a spouse or other family member
Declaration of Homestead (M.G.L. c. 188) – This is a document which protects your primary residence from the claims of creditors (besides mortgages and taxing authorities) up to the amount of Five Hundred Thousand Dollars ($500,000.00).