Mental Incapacity and Estate Planning

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The common issue of mental incapacity is one of the most important reasons for beginning the estate planning process early. While you may work hard at taking care of yourself, you do not know what the future has in store for you. Estate planning allows you to ensure that your assets are protected and distributed in the manner you choose in the event that you become incapacitated later on in life. Read more

Avoiding a Tax Bomb on Proceeds from a Life Insurance Policy

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Life insurance is a contract entered into between a policy holder and an insurance company. Specifically, the life insurance policy holder makes set payments to the insurance company in exchange for the promise that the company will pay a designated sum of money to a beneficiary in the event that the policy holder passes away. All Massachusetts residents are subject to a state estate tax if their estate is valued over $1 million.

Your estate includes all of the property you own, including tangible personal property (your “stuff”), intangible personal property (bank accounts, IRAs, 401Ks, business interests, etc), and real property as well as any proceeds from a life insurance policy. Because the proceeds on a life insurance policy can be in the hundreds of thousands and even millions of dollars, these proceeds exponentially raise the value of your estate and the tax bomb that your estate faces. Read more

Do I Need a Will or Trust, or Both? Answered by a Massachusetts Estate Planning Attorney

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Many people are familiar with the terms “will” and “trust,” however, they don’t exactly know the difference, nor do they know which is more appropriate to address their needs. Being proactive with your financial planning and asset protection is the first step to taking care of your assets and your family when you pass. The next important step is determining which type of protection and planning will fulfill your wishes and make the most sense for your individual set of circumstances.  Read more

What Do I Do When Someone Dies?

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When someone close to you dies it can often be an overwhelming experience. We have created a checklist to use when a person dies to help guide you through this difficult process click here to download.

Please call our office for specific advice when needed.

The Importance of An Estate Plan If You Have Young Children

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Yesterday’s post got me thinking more about why it’s important to have a plan in place if you have young children.

Estate planning allows parents to plan for who will care for their children and how they are cared for, ensures their property will pass to whom they want, the way they want and when they want and determines who will handle the property they leave to their children.

Minors need parents, and if you pass away prior to your child turning 18, who will care for them?  If you don’t decide and document it in a plan, the court will decide for you. Read more

Revocable Living Trusts and Children as Beneficiaries of Life Insurance

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Client’s often tell me that they have named their spouse as the beneficiary of their life insurance policy and then their child as the backup beneficiary. This is very common.

There are a few things to consider if you currently have your beneficiaries listed this way.  If your child is a minor when the second spouse dies then a legal guardian must be appointed by the court to oversee the child’s inheritance.  You have no say in who the guardian will be. The guardian then holds the money for the benefit of the child until the child reaches the age of majority (18 years old in Massachusetts).  As you may know, the appointment process can be time consuming and costly and can prevent your child from being able to use the money right away. Read more

Does Massachusetts Have an Estate Tax?

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Yes.  Massachusetts has an estate tax.  If you are feeling motivated here is the Massachusetts Department of Revenue Guide to the estate tax http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/estate-tax-information/estate-tax-guide.html. Read more