Attorney Leah Kofos discusses Incapacity Documents for Recent Grads, for our Smart Counsel for Lunch Series. Please watch and if you have any questions or want to learn more please call us at 781 461-1020.
Think Before You Gift: How Medicaid Sees Your Financial Generosity
“I want to give some money to my child – is that okay to do?” I often hear this question from elderly clients who visit me for the purpose of long-term care planning. The short answer: Yes, you are free to gift a certain amount to your adult children without filing a gift tax return. But here’s the catch – what seems like a generous gesture today could create serious issues down the line if you ever need Medicaid to help pay for nursing home care.
Let’s break it down. As of January 1, 2025, you can gift up to $19,000 per person per year without needing to file a federal gift tax return. This is the annual gift tax exclusion amount for 2025. Annual exclusion gifts may be made to multiple recipients. For example, you may give $19,000 to each of your children, Alvin, Simon, and Theodore, during 2025. If you are married, each spouse may give $19,000 to each child, meaning that Alvin, Simon, and Theodore may each receive a total of $38,000, allowing you and your spouse to gift $114,000 in 2025 without filing federal gift tax returns.
Sounds great, right? But here’s where things get complicated.
If you need Medicaid to pay for nursing home care within five years of making those gifts, the money you gave away could come back to haunt you. Medicaid has both medical and financial eligibility requirements. Upon application for such benefits, MassHealth (the agency that administers the Medicaid program in Massachusetts) will require an applicant to provide detailed financial information going back five years. This includes disclosing any gifts made during that period. If you made gifts during the so-called five-year look-back period, Medicaid considers the gifts to be “disqualifying transfers.” The logic is simple: if you’d held onto that money, you could have paid for your own care. By giving it away, you’ve essentially reduced your assets to qualify for government help – and that’s a red flag for Medicaid.
If Medicaid determines the gifts are disqualifying transfers, the person who made the gift will be ineligible for benefits for some period of time. The only way to avoid the penalty? The gift must be returned – which isn’t always practical or even possible. The real kicker is that the period of ineligibility does not begin until the applicant “would have otherwise been eligible.” That means the disqualification period for making a gift begins after the applicant has run out of money. And keep in mind, this trap for the unwary doesn’t just apply to cash gifts. Giving away property, like a house, counts too.
There’s absolutely nothing wrong with wanting to help your children financially – but when it comes to significant gifts, timing and strategy matter. As you grow older or start thinking about the possibility of needing long-term care, it’s essential to consult with an experienced attorney who can help you avoid costly mistakes. Thoughtful planning today can spare you and your family a great deal of stress and financial strain down the road.
Attorney Leah A. Kofos is an associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC, which focuses on advising its clients in the areas of trust and estate planning, estate settlement, and elder law matters. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit ssbllc.com or call 781-461-1020.
© 2025 Samuel, Sayward & Baler LLC
Watch Out for Scams!
Attorney Leah Kofos discusses Scams this week, for our Smart Counsel for Lunch Series. Please watch and if you have any questions or want to learn more please call us at 781 461-1020.
April: A Guide to Estate Planning
Spring has officially arrived! As the days grow warmer and flowers begin to bloom, we are reminded that spring is a season of renewal and growth, making it the ideal time to prepare for things to come.
Benjamin Franklin famously said: “In this world nothing can be said to be certain, except death and taxes.” Estate planning is all about addressing these certainties, as well as the possibility you may become incapacitated prior to death. Planning is a crucial step in ensuring your assets pass to those you wish to benefit while minimizing delay, expense, and taxes, and ensuring that your wishes are honored. By breaking down the word APRIL into an acronym of key estate planning concepts, we can explore how to create a secure financial future for your loved ones and leave a lasting impact on future generations.
A – Attorney-in-Fact
One of the most critical components of an estate plan is appointing an Attorney-in-Fact. An Attorney-in-Fact is the agent designated in your Power of Attorney to make legal and financial decisions on your behalf should you become incapacitated.
Without a Power of Attorney, and in the event you become incapacitated, your loved ones will have to go through a lengthy and expensive court process to obtain conservatorship to manage your financial affairs. A Power of Attorney ensures that your bills are paid, and your financial interests are protected immediately without Court involvement and the accompanying loss of privacy, delay, and expense.
P – Probate
Probate is the legal process by which a deceased person’s assets are distributed under court supervision. It can be time-consuming, costly, and stressful for surviving family members. Probate involves verifying the deceased’s will (if one exists), paying debts and taxes, and distributing assets to heirs.
However, probate can be avoided with proper planning. Certain financial accounts allow you to name beneficiaries, ensuring that these assets bypass probate and go directly to the designated recipients – provided that those beneficiaries are not incapacitated people or minor children. If you name a minor or incapacitated person, simply naming beneficiaries on an account will not avoid the involvement of the probate court.
So what should you do if you have minor children? An effective plan is to create a Revocable Trust, which allows assets to be transferred outside of probate, ensuring a seamless transition to all beneficiaries, regardless of age.
By taking these steps, you can save your loved ones from the hassle of probate and ensure a smoother distribution of your assets.
R – Real Estate
Real estate is often one of the most valuable assets in an estate, and proper planning is essential to ensure it is handled according to your wishes. Without a plan, real estate may be tied up in probate, delaying access for your heirs or the sale of the property and potentially leading to unnecessary legal fees and disputes.
Placing your real estate in a Trust can help you avoid probate and provide clear instructions for the management and distribution of your property. A Revocable Living Trust allows you to retain control of your property during your lifetime while ensuring a smooth transition of ownership upon your passing. If you own multiple properties, especially in different states, a Trust is particularly beneficial as it avoids multiple probate proceedings.
Additionally, ensuring that real estate ownership is properly titled will also help streamline the transfer process outside of probate.
I – Inventory
An often-overlooked yet vital aspect of estate planning is preparing an inventory of your assets and keeping it up to date. Without a clear record of what you own, your family may struggle to locate and distribute your assets after your passing or in the event you become incapacitated.
A well-organized asset inventory should include a list of income sources, bank accounts, investment accounts, real estate holdings, retirement plans, and life insurance policies, as well as trusted advisors (attorney, accountant, financial advisor, etc.). It’s a good practice to update this inventory every few years and keep it in a secure yet accessible location. Sharing it with your attorney, Trustee, or a trusted family member ensures that they can efficiently manage your estate when the time comes.
L – Legacy
Estate planning is about more than just transferring assets; it is about leaving a meaningful impact on future generations. By carefully structuring your estate plan, you can ensure that your wealth benefits your loved ones in a way that aligns with your values and aspirations. Whether through a well-drafted and well-managed Trust, charitable contributions, or providing financial security for your heirs, your estate plan becomes a testament to your life and the principles you hold dear. A thoughtful legacy is not just about money – it is about ensuring that your influence, generosity, and intentions endure long after you are gone.
Another way to view estate planning is as a means of shaping the future for those you leave behind. It allows you to provide stability, preserve family traditions, and support meaningful causes that align with your beliefs. Whether it is funding education, donating to charity, or ensuring the financial security of your heirs, an estate plan is a powerful tool to make your mark on the world. By taking proactive steps now, you create a roadmap that safeguards your wishes and provides guidance for future generations, ensuring that your legacy extends far beyond your lifetime.
Estate planning is an essential step in securing your future and protecting your loved ones. This April, take steps to build a comprehensive estate plan that ensures peace of mind and a seamless transition of your assets. Start planning today so that your legacy continues for generations to come.
Attorney Leah A. Kofos is an associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC, which focuses on advising its clients in the areas of trust and estate planning, estate settlement, and elder law matters. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit ssbllc.com or call 781-461-1020.
© 2025 Samuel, Sayward & Baler LLC
Smart Counsel Interview with FriendshipWorks
This week we feature Attorney Leah Kofos’ interview with FriendshipWorks Executive Director, Janet Seckel-Cerrotti. FriendshipWorks is a nonprofit that reduces elder isolation by connecting volunteers with older adults for friendship and support. We appreciate Janet taking the time to share her wisdom and experience with us.
Since 1984, FriendshipWorks has been matching caring volunteers with elders in need of companionship, support, and assistance. Whether it’s a weekly visit from a Friendly Visitor, completing a household task with a Friendly Helper, a Medical Escort to be there for a medical appointment, the joy of a PetPals visit, or a MusicWorks session, these five programs bring warmth, connection, and friendship into the lives of Boston’s older adults.
Preserving Your Pot of Gold: Smart Strategies for Preserving Your Assets
During the week of St. Patrick’s Day, we’re all dreaming of finding that elusive pot of gold at the end of the rainbow. But if you’ve worked hard to build your own wealth, you know that keeping it safe is just as important as acquiring it. Without careful planning, your financial security could be eroded by taxes, legal complications, and unexpected expenses. To ensure your “pot of gold” remains intact for you and your loved ones, consider these key asset protection strategies.
Minimizing Estate Taxes
Estate taxes can take a significant bite out of the wealth you intend to pass on to your heirs. Fortunately, with proper planning, you can minimize this tax burden and keep more of your assets where they belong—within your family. One effective strategy is to take advantage of the annual gift tax exclusion, which allows you to transfer a certain amount to beneficiaries each year without triggering federal taxes. Establishing revocable trusts with estate tax minimization provisions can also be a powerful way for married individuals to lessen the burden of estate taxes. Other strategies, such as charitable giving and life insurance trusts, can further reduce estate tax exposure. A proactive approach ensures more of your wealth stays within your family.
Avoiding Probate
Probate is a legal process that can be costly and time-consuming, delaying asset distribution to your heirs. Fortunately, there are ways to structure your estate to bypass probate entirely. One of the best strategies is to set up a revocable living trust which allows assets to transfer smoothly without court intervention. Proper designation of beneficiaries on financial accounts is also an effective way to ensure your wealth passes directly to your loved ones. But beware the ides of March…I mean, beware the improper designation of beneficiaries! Naming minor or incapacitated beneficiaries on your accounts is an easy pitfall to stumble into.
Planning for Long-Term Care
No one wants to think about the possibility of needing long-term care, but failing to plan ahead for it can be financially devastating. Nursing home and assisted living costs can deplete your savings quickly if you don’t plan ahead. One way to protect your assets is through long-term care insurance, which can cover many of these expenses and prevent you from having to rely solely on personal funds. Another approach is restructuring your assets through your estate plan in a way that allows you to qualify for assistance while preserving your wealth for your heirs. By planning ahead, you can take precautions to ensure your financial resources aren’t wiped out by unexpected healthcare costs.
Diversification: Don’t Put All Your Gold in One Pot
Diversification is key to protecting your wealth from market downturns and economic uncertainties. By spreading your investments across different asset classes—such as stocks, bonds, real estate, and alternative investments—you reduce the risk of losing everything if one market takes a hit. Whether it’s gold coins, property, or investments, a well-balanced portfolio is essential for long-term financial security.
Creating a Legacy
Preserving your wealth isn’t just about protecting assets during your lifetime—it’s also about ensuring it benefits future generations. Trusts can help secure your legacy and provide financial stability for your children and future descendants. Educating your heirs about financial responsibility and smart money management is just as important as passing down assets. Estate planning is about more than passing down money; it’s about securing a lasting financial legacy.
Guard Your Treasure with Care
Protecting your assets today means securing a brighter future for yourself and those you care about. Proactive financial planning allows you to pass on more than just wealth—it lets you share values, stability, and opportunities with future generations. Whether through trusts, investment diversification, or long-term care strategies, each step you take now strengthens your financial foundation and ensures lasting prosperity. A strong estate plan provides confidence that your hard-earned resources will support your family’s future.
This St. Patrick’s Day, take some time to review your estate plan and make sure your pot of gold is safe from unnecessary losses. After all, luck may help you find treasure, but smart planning ensures you keep it!
Attorney Leah A. Kofos is an associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC, which focuses on advising its clients in the areas of trust and estate planning, estate settlement, and elder law matters. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit ssbllc.com or call 781-461-1020
Organization and Your Estate Plan
Attorney Leah Kofos discusses, Organization and Your Estate Plan, for our Smart Counsel for Lunch Series. Please watch and if you have any questions or want to learn more please call us at 781 461-1020.
5 Resolutions for the New Year
As the calendar turns to a new year, many of us feel the pull of fresh starts and renewed motivation. It’s easy to procrastinate on important financial and housekeeping tasks, but the new year is the perfect opportunity to channel the season’s momentum and tackle them head-on. These resolutions aren’t just about getting organized—they’re about safeguarding your future, easing burdens for your loved ones, and simplifying your life. Here are five resolutions to consider for the year ahead.
- Update or Create Your Estate Plan
If you haven’t updated your estate plan in a while—or if you don’t have one—it’s time to prioritize this critical task. Life changes quickly, and having a plan in place is critical if you become ill or pass away unexpectedly. Whether it’s updating beneficiaries, creating a will, or setting up a trust, meeting with an estate planning attorney and working with them to create an appropriate estate plan ensures your wishes will be carried out and your loved ones protected. Don’t let uncertainty linger. Schedule a meeting with a trusted estate planning attorney to make sure your estate is in order.
- Consult a Financial Advisor
If you’re feeling uncertain about your financial future or want guidance on growing your wealth, now is the time to reach out to a financial advisor. These professionals can help you navigate retirement planning, investment strategies, and even budgeting. A quick consultation can give you a clear picture of where you stand financially and provide actionable steps to achieve your goals. Whether you’re saving for a big purchase, planning for college tuition, or preparing for retirement, a financial advisor can help you stay on track.
- Create a Centralized System for Accounts and Passwords
No one likes to think about emergencies, but having a centralized list of accounts, passwords, and key contacts is a practical way to prepare for the unexpected. This system can include login credentials for online accounts, contact information for financial advisors and attorneys, and instructions for accessing important documents. Digital tools like password managers or a secure, physical notebook can help you organize this information. This resolution isn’t just about convenience—it’s about making things easier for your family if something happens to you.
- Reassess Your Budget and Financial Goals
A new year is a great time to take a fresh look at your budget. Are you spending in line with your values and goals? Do you have any automatic monthly subscriptions like streaming services or gym memberships that you no longer use? Reassess your monthly expenses, and look for areas where you can cut back or reallocate funds. It’s also a good idea to evaluate your financial goals for the year ahead. Whether you’re aiming to pay off debt, save for a vacation, or contribute more to your retirement account, setting specific targets can make a big difference.
- Declutter Your Home Strategically
Housekeeping resolutions can be just as impactful as financial ones. Decluttering your home doesn’t just create a more pleasant living environment; it can also reduce stress and make it easier to manage your household. Focus on one area at a time—perhaps starting with paperwork or items you no longer use. Donate, recycle, or dispose of unnecessary items to create a cleaner and more organized space.
The temptation to procrastinate on these tasks is strong, but the new year is the perfect moment to take action. By addressing these legal, financial and housekeeping resolutions now, you can make meaningful strides toward securing your future and your family’s future and simplifying your life. Take advantage of the fresh energy this season brings and set yourself up for success in the year ahead—you’ll thank yourself later.
Attorney Leah A. Kofos is an associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC, which focuses on advising its clients in the areas of trust and estate planning, estate settlement, and elder law matters. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit ssbllc.com or call 781-461-1020.
© 2024 Samuel, Sayward & Baler LLC
Avoid Last-Minute Chaos: What Estate Planning Can Learn from the Holidays
The holiday season is a time of joy, celebration, and, for many, a whirlwind of planning. From organizing travel itineraries to curating gift lists, preparing holiday feasts to decorating the house, the key to a low(er)-stress holiday lies in planning ahead. Yet, as we rush to finalize our December to-dos, there’s another type of planning that often gets overlooked—estate planning.
Imagine walking into a store on Christmas Eve, only to find empty shelves, long lines, and mounting frustration as you scramble for that perfect gift. The stress of last-minute holiday preparations can overshadow the joy of the season. Similarly, delaying estate planning—or neglecting it altogether— can burden your loved ones with avoidable uncertainty and legal complications. Without a clear will or trust in place, your family may face lengthy court battles, misunderstandings, or financial burdens.
The parallels between holiday preparation and estate planning are striking. Both require foresight, attention to detail, and collaboration with loved ones to ensure things run smoothly. Just as last-minute Christmas shopping can lead to chaos, waiting until the eleventh hour to address your estate can result in unnecessary complications and stress for your family in the future, ultimately falling short of truly addressing your intentions and the needs of your family.
The Holidays: A Perfect Time for Estate Planning Conversations
The holiday season provides a unique opportunity to have meaningful conversations about estate planning. Why? Because families are often gathered together under one roof. These moments of togetherness are perfect for discussing important topics that might otherwise be postponed indefinitely.
Here’s why it works:
- Everyone’s Present: Coordinating schedules can be challenging, but the holidays naturally bring people together, making it an ideal time to discuss your plans and ensure everyone is on the same page. It’s also an opportunity to ask family members if they are willing to take on roles like trustee or guardian, so you can confirm their understanding and readiness to fulfill these responsibilities.
- Reflective Atmosphere: The end of the year often prompts introspection. People tend to think about their priorities, legacy, and what truly matters in life. Estate planning aligns naturally with this mindset.
- Generational Involvement: If you’re concerned about your aging parents’ estate plan, the holidays allow you to have those conversations and ask questions in a warm and supportive environment. Do they have a plan in place? When was the last time they updated their documents? The estate plan they signed years ago may not reflect their needs today or the current laws.
If you’ve already taken steps to organize your estate, sharing your own experiences can make the discussion more approachable. Explaining why you found it important may encourage others to see the value in planning for their future. It’s also crucial to be patient and understanding, recognizing that estate planning is a deeply personal process. Give your loved ones time to process the idea, and avoid pressuring them into immediate decisions.
While estate planning may not seem like a festive endeavor, it is one of the most thoughtful gifts you can offer your loved ones. Preparing your estate plan in advance spares your family from difficult decisions and potential conflicts, ensuring your wishes are honored and their burden is lightened. By taking the time to prepare, you’re sparing them from difficult decisions and potential conflicts in the future.
Celebrate with Confidence
Just as careful holiday planning allows you to relax and enjoy the season, a well-thought-out estate plan provides peace of mind that your family will be cared for no matter what. This holiday season, take a moment to address both the short-term joys of the festivities and the long-term wellbeing of your loved ones.
By planning ahead for both, you can celebrate the present and safeguard the future—a gift that truly keeps on giving.
Attorney Leah A. Kofos is an associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC, which focuses on advising its clients in the areas of trust and estate planning, estate settlement, and elder law matters. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit ssbllc.com or call 781-461-1020.
© 2024 Samuel, Sayward & Baler LLC
Estate Planning and Gratitude
A Season of Giving: Estate Planning as an Act of Gratitude
As we approach Thanksgiving and the holiday season, many of us take the time to reflect on the people, experiences, and resources that enrich our lives. This time of year, with its emphasis on family, gratitude, and generosity, offers a unique opportunity to think about estate planning and consider how we can give back and provide for our loved ones in meaningful ways.
During these times of connection, we’re reminded of the values we wish to pass on to future generations. Estate planning becomes an extension of this season, as it provides a pathway to solidify and communicate your values, all while protecting your family’s future.
The decisions we make in estate planning—whether regarding financial assets, charitable giving, or sentimental heirlooms—can reflect what we cherish. It’s not just about distributing wealth; it’s about creating a legacy that embodies who we are and what we hold dear.
Charitable Giving and Tax Deductibility
The holiday season often inspires us to give back to our communities, and estate planning provides unique ways to support causes close to your heart. By incorporating charitable giving into your estate plan, you can leave a lasting impact while also utilizing potential tax benefits.
Donor-advised funds are a popular, flexible option for charitable giving. By setting up a donor-advised fund, you can allocate a specific amount of money to this fund, which will then be distributed to charities or nonprofit organizations over time. A DAF allows you or your heirs to make grant recommendations to chosen charities even after you’re gone, ensuring ongoing charitable support in line with your values. For families, a donor-advised fund can also be a way to involve children or grandchildren in philanthropic decisions, giving them a hands-on opportunity to participate in a legacy of generosity.
Another impactful strategy is naming a charity as a beneficiary on a retirement account or providing in your estate plan that your retirement accounts will be allocated to one or more charities. Retirement accounts are often taxed when passed to individual beneficiaries, but charities receive them tax-free. This approach enables you to support a cause while ensuring other assets go to family members.
By aligning your plan with the causes you care about, you create a legacy of generosity that supports the institutions, organizations, and causes that matter most to you.
Teaching Your Children the Value of Generosity and Planning Ahead
Family gatherings can provide an opportunity to discuss these plans and values with your family. Conversations about estate planning, while often delicate, can help your children understand your values around generosity, legacy, and financial responsibility. It can also demystify estate planning, showing it as a way to protect and support the people and causes you love rather than an overwhelming process.
Including children in conversations about charitable giving can also instill in them the importance of generosity. By sharing your ‘whys’ about the charities you will benefit, you demonstrate how to connect personal values with real-world action. Some families choose to create a “family charitable fund,” allowing children to participate in decisions about how the funds are allocated. This approach fosters a sense of unity and shared purpose, and allows the next generation to carry forward a tradition of giving.
Leaving Tangible Sentimental Items to Loved Ones
While estate planning often emphasizes financial assets, it’s equally essential to think about sentimental items like jewelry, photos, letters, or meaningful household items —known in the estate planning world as “tangible personal property.” Passing down family heirlooms can be an incredibly impactful way to maintain family bonds and keep memories alive. For many families, these items have more emotional significance than financial assets.
Creating a list as part of your estate plan that identifies who you’d like to have these items allows you to honor relationships in a personal way. A holiday gathering, especially one that includes shared stories and memories, can inspire discussions about which items hold the most meaning. This planning ensures that cherished belongings are handed down thoughtfully, creating a tangible reminder of love and connection for generations to come.
Building a Legacy of Generosity
As we celebrate the holiday season, take a moment to think about what gratitude means in your life and how you wish to express it through your estate plan. An estate plan that incorporates charitable giving, thoughtful financial distribution, and cherished personal items can be a powerful testament to what’s important to you.
The holiday season, a time of reflection and generosity, provides the perfect context to build or revise your estate plan. By approaching estate planning with gratitude and a desire to make a positive impact, you can create a legacy that speaks to the love, care, and values that have shaped your life—and that will continue to touch the lives of others for generations to come.
Attorney Leah A. Kofos is an associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC, which focuses on advising its clients in the areas of trust and estate planning, estate settlement, and elder law matters. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit ssbllc.com or call 781-461-1020.
© 2024 Samuel, Sayward & Baler LLC