What Is Estate Planning And Why Every Massachusetts Resident Needs It
Estate planning is one of the most important steps we can take to protect our loved ones and ensure our wishes are carried out under Massachusetts law. Whether we live in Gloucester, Rockport, Manchester By The Sea, Beverly, or anywhere in Essex County, estate planning gives us the ability to decide who inherits our property, who manages our financial and medical affairs if we are unable, and how we want sensitive personal matters handled. Without proper planning, the courts will rely on Massachusetts statutes to determine how our assets are distributed, and the results may not reflect what we truly want for our family. Estate planning is not just for the wealthy—it is for every Massachusetts resident who wants to maintain control over their future and protect their family.
The Basics Of Estate Planning In Massachusetts
Estate planning in Massachusetts involves creating legally enforceable documents that direct how our affairs will be handled. At the most basic level, this may include a Last Will and Testament, a revocable or irrevocable trust, durable powers of attorney, and health care proxies. These tools work together to ensure that our wishes are respected if we pass away or become incapacitated.
Massachusetts law governs the validity of estate planning documents. For example, a valid will must comply with Massachusetts General Laws, Chapter 190B, Article II of the Massachusetts Uniform Probate Code (MUPC). This requires the will to be in writing, signed by the testator, and witnessed by at least two competent individuals. If these requirements are not met, the will may be challenged or even deemed invalid.
When we fail to create a will or trust, our estate is distributed under Massachusetts intestacy statutes, found in M.G.L. c. 190B, §§ 2-101 through 2-114. These laws dictate who inherits, often giving preference to spouses and children. While this may work in some families, it may not reflect our true intentions—particularly for blended families, unmarried partners, or individuals who wish to leave assets to friends or charities.
Protecting Ourselves During Life
Estate planning is not only about what happens when we pass away—it also governs how our affairs are managed while we are alive but unable to act for ourselves. A durable power of attorney, authorized under M.G.L. c. 190B, § 5-501, allows us to appoint a trusted individual to handle financial matters such as paying bills, managing investments, or even selling property. Without this document, our loved ones would need to go through guardianship or conservatorship proceedings in the Probate and Family Court, which are time-consuming, costly, and emotionally draining.
Similarly, a health care proxy under M.G.L. c. 201D empowers us to appoint someone to make medical decisions on our behalf if we cannot. This ensures that our medical care reflects our wishes and values, even when we cannot speak for ourselves. Massachusetts law requires that a health care proxy be signed in the presence of two adult witnesses, neither of whom can serve as the proxy.
Trusts As A Tool For Massachusetts Families
Trusts play a major role in estate planning for many families in Essex County. A revocable living trust allows us to retain control of our assets during life, while also providing a clear path for transferring property to loved ones upon death—without going through probate. Trusts are especially helpful for real estate owners in Massachusetts, as deeds can be transferred into trust ownership, simplifying succession.
Irrevocable trusts, on the other hand, can help shield assets from potential creditors and play a vital role in Medicaid planning. Under Massachusetts Medicaid (MassHealth) rules, certain assets transferred into an irrevocable trust at least five years before applying for benefits may be excluded when determining eligibility. This can be critical for families concerned about long-term care costs.
The Consequences Of Doing Nothing
If we do not create an estate plan, the Commonwealth will dictate what happens through the Probate Court. The Massachusetts Uniform Probate Code governs everything from intestate succession to the appointment of personal representatives. This process often takes months, sometimes years, and comes with legal fees that can significantly reduce the value of the estate. More importantly, it takes decision-making out of our hands and places it in the control of statutes and judges.
By contrast, proactive estate planning allows us to decide who receives our assets, who manages our affairs, and how sensitive matters such as health care and guardianship of minor children are handled. It gives us peace of mind and provides clarity to our families during difficult times.
Frequently Asked Questions About Estate Planning In Massachusetts
What Happens If I Die Without A Will In Massachusetts?
If we die without a will, our assets are distributed according to Massachusetts intestacy statutes under M.G.L. c. 190B. This means that the court determines heirs based on blood relationships. While a surviving spouse and children often inherit first, the distribution may not reflect what we truly want. For example, unmarried partners, stepchildren, or charitable causes would not inherit under intestacy laws. This is why creating a will is essential to ensure that our wishes are followed.
Do I Still Need A Will If I Have A Trust?
Yes. Even if we create a revocable living trust, we should also have what is known as a “pour-over will.” This ensures that any assets not formally transferred into the trust during our lifetime are transferred into the trust at death. Without it, property outside the trust may go through intestate succession, which could defeat the purpose of careful planning.
What Is The Difference Between A Health Care Proxy And A Living Will In Massachusetts?
Massachusetts law formally recognizes health care proxies under M.G.L. c. 201D but does not specifically recognize living wills. A health care proxy appoints a trusted agent to make medical decisions on our behalf. A living will, while not legally binding, may still be used as a written statement of our preferences for end-of-life care. Having a health care proxy in place is critical because it carries legal authority.
How Can A Durable Power Of Attorney Protect Me?
A durable power of attorney allows us to appoint someone we trust to handle financial decisions if we become incapacitated. Without one, our loved ones would need to go through the Probate and Family Court to establish a guardianship or conservatorship. This process can be stressful, public, and expensive. A properly drafted durable power of attorney eliminates these issues and provides immediate authority to our chosen agent.
Why Is Probate Something Families Try To Avoid In Massachusetts?
Probate in Massachusetts can be lengthy, costly, and stressful for surviving family members. The process requires filing documents with the Probate Court, notifying creditors, inventorying assets, and potentially dealing with disputes among heirs. By creating a revocable trust or using beneficiary designations, we can transfer property directly to loved ones and avoid the delays of probate. This is one of the biggest benefits of thoughtful estate planning.
Can Estate Planning Reduce Massachusetts Estate Taxes?
Yes. Massachusetts imposes its own estate tax under M.G.L. c. 65C, which applies to estates exceeding a certain threshold. Proper use of trusts, lifetime gifting strategies, and marital deductions can help reduce or eliminate estate tax liability. Without careful planning, a significant portion of an estate could go to taxes rather than to family members.
How Often Should I Update My Estate Plan?
We should review and update our estate plan whenever major life events occur—such as marriage, divorce, the birth of children, significant changes in assets, or relocation. Massachusetts law also evolves, and estate planning strategies that were effective ten years ago may no longer provide the same protections today. Regular reviews ensure that our documents remain legally enforceable and reflect our current goals.
Call The Sullivan Firm P.C. Today
At The Sullivan Firm P.C., we help individuals and families across Gloucester, Rockport, Manchester By The Sea, Beverly, and all of the North Shore and Essex County protect their assets and plan for the future. Estate planning is too important to leave to chance. We encourage you to call our law office at 978-325-2721 to schedule your free consultation. Our office is located in Gloucester, Massachusetts, and we are ready to help you create a plan that reflects your wishes and protects your loved ones.
