Attorney Maria Baler

Five Things to Know When Transferring Your Home to a Revocable Trust

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One of the most common ways to own real estate is in a revocable trust, also called a revocable living trust. A revocable trust allows for unrestricted control and use of the property by the owners for their lifetimes.

A revocable trust is created by a person called the “grantor” or “settlor” who designates a “Trustee” who will manage the assets owned by the trust for the benefit of the trust “beneficiaries”. In a revocable trust, the owner of the real estate is typically the grantor, Trustee and beneficiary of the trust during the owner’s lifetime. If a married couple transfers their home to a revocable trust, both members of the couple are often the grantors, Trustees and beneficiaries.

There is a federal law that permits the transfer of mortgaged residential real estate with less than five units to a revocable trust of which the borrower is a beneficiary without impacting an existing mortgage loan and without requiring permission from the mortgage lender.

Here are five things to know about transferring your home to a revocable trust:

1. Benefits of a Revocable Living Trust

Transferring real estate into a revocable trust has many benefits and can achieve many common planning goals.

Holding real estate in a revocable trust will allow the property to avoid the probate process at the death of the owner (or at the death of the surviving owner if the property is owned by more than one person). Probate is the court process that transfers title from a deceased person to the deceased person’s heirs or the beneficiaries under the Will. In Massachusetts, it can take several months or more for the probate court to appoint a Personal Representative of the estate and this delay can wreak havoc with the management of property. No one has the authority to sell or lease the property until the court makes the appointment. If a trust is used to avoid probate, the successor Trustee of the Trust can manage or sell real estate owned by the Trust immediately after the owner’s death for the benefit of the Trust beneficiaries.

Holding real estate in trust can be especially beneficial if you own real estate in multiple states, since real estate must be probated in the state in which it is located. Owning real estate in trust will avoid multiple probate proceedings.

If the value of your estate is large enough to be subject to estate tax ($2 million in Massachusetts, $13.9 million for federal estate tax purposes) and you are married, holding real estate in a trust can be part of a plan to shelter assets at the death of the first spouse to die from taxation at the death of the surviving spouse, saving overall estate taxes for those who inherit the assets at the death of the surviving spouse.

Last but not least, revocable trusts can be used to manage real estate for young children or other beneficiaries. For example, if you have school-age children and would like your home maintained for them if you passed away so they can continue to attend school in the town where they live, or if you would like a beloved vacation home held in trust for the benefit of your children and grandchildren after your death, a trust is an excellent vehicle for these situations.

2. Homestead Protection

The Massachusetts Homestead Law allows you to protect some or all of the equity in your primary residence from creditors’ claims by filing a Declaration of Homestead with the Registry of Deeds. If you transfer your home to a revocable trust, the Declaration of Homestead you filed when your home was individually owned will likely be void. A new Declaration of Homestead, signed by the Trustees of the revocable trust should be filed with the deed conveying the property to the Trustees. Homes held in trust are entitled to the same Homestead protection as homes owned individually, as long as a proper Declaration of Homestead is filed by the Trustees.

3. Title Insurance and Homeowners Insurance

Two important tasks that should be undertaken when you transfer real estate to a trust relate to your homeowner’s insurance and your owner’s title insurance.

You should notify your homeowner’s insurance agent when you transfer property to a revocable trust and ask them to update your policy to reflect that your property is titled in trust. Also note that holding real estate in a revocable trust does not afford you any liability protection. You should make sure to maintain adequate liability insurance to protect the real estate against liability. If you do not presently have an umbrella policy you may wish to speak with your homeowner’s insurance agent about obtaining such a policy.

If you purchased owner’s title insurance when you purchased your property, you may need to take action to continue that coverage following transfer of your property to a revocable trust. Some types of owner’s title insurance policies require an endorsement to continue coverage after property is transferred to a trust and some do not. Some title insurance companies will require a title rundown before issuing an endorsement to the policy, and some will charge a fee for the endorsement.

4. Residential and Other Property Tax Exemptions

Boston, Brookline, Cambridge, and other cities and towns in the Commonwealth offer a residential real estate tax exemption to homeowners who occupy real estate as their principal residence. If you transfer your property to a trust you may need to re-apply for the exemption and provide a copy of the relevant trust documents to the city or town. To ensure you do not lose your residential exemption (even temporarily) when your property is transferred into trust, contact your city or town to determine what steps you need to take to continue that exemption after your property is transferred into trust.

Cities and towns may also offer property tax exemptions to blind, elderly or disabled property owners. If you are eligible to receive a property tax exemption from the city or town where your home is located, the transfer of your home into trust may affect these exemptions. If you receive a property tax exemption you should contact your city or town to determine whether or not the conveyance of the property into trust will affect the exemption, and whether or not this can be avoided.

5. Beach Stickers, Dump Stickers, and Other Amenities

Every city and town is unique, and some cities and towns offer amenities that are only available to residents of that city or town. For example, only people who own property in a particular town on the Cape can get a beach sticker that will allow them to park at the beach in that town. In other towns, only homeowners can get a sticker that allows them to bring trash to the town’s transfer station. Other cities may allow you to park on certain streets if you are a resident and have a resident parking permit. If your town offers any of these amenities tied to home ownership, you should inquire with your city or town whether the conveyance of your property into trust will affect your eligibility for these services, and whether or not this can be avoided.

Ownership of real estate in a revocable trust provides many estate planning benefits and is a common practice here in Massachusetts. If you are interested in taking advantage of these benefits, consult with an experienced estate planning attorney who can review with you the pros and cons of transferring real estate you own into a revocable trust. If you do transfer your property, keep in mind the things noted above so that you can enjoy the benefits of a revocable trust without any issues.

Maria C. Baler, Esq. is an estate planning and elder law attorney and partner at Samuel, Sayward & Baler LLC, a law firm based in Dedham. She is also a former director of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA), and the former President of the Board of Directors of the Massachusetts Forum of Estate Planning Attorneys. For more information, visit www.ssbllc.com or call (781) 461-1020. 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.

March 2025

© 2025 Samuel, Sayward & Baler LLC

Five Things Your Family Will Be Thankful For

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One of the first things I want to know when I meet a new estate planning client is: What are your planning goals? What are you trying to accomplish by seeing me? Depending on their circumstances, clients may want to avoid probate, save estate taxes when they die, make sure their assets will be protected if they require long-term care at the end of their life, or all of the above. But one goal I hear most often from clients is the desire to make things easier for their loved ones after they pass away.

Many of our clients have experienced the death of a spouse or a parent and understand the work involved in wrapping up someone’s affairs after their death. That experience can be markedly different – in a good way – if the person has planned properly and taken steps to be sure everything is in order. If that is the case, significant time, expense and aggravation can be saved.

As we begin to anticipate the Thanksgiving holiday with our family and friends, here are five things those you leave behind will be thankful you did before you get sick or pass away.

1. Make sure your Power of Attorney is Up to Date

Your power of attorney is the unsung hero of your estate plan. A Power of Attorney appoints someone (an “attorney-in-fact”) to make legal and financial decisions for you if you are unable to make those decisions yourself at some point during your lifetime. A Power of Attorney must specifically list the actions you authorize your attorney-in-fact to take on your behalf.

Many people will suffer a period of incapacity prior to death. It is during this time that a well drafted Power of Attorney is crucial. A Power of Attorney drafted 10 or 20 years ago may not be honored by banks or other financial institutions your attorney-in-fact needs to deal with to be able to manage your assets and pay your bills. Older Powers of Attorney may not specifically authorize actions your attorney-in-fact may need to take, such as to access your on-line accounts, deal with cryptocurrency, or sell the second home you recently purchased.

An up-to-date Power of Attorney will avoid the need for a Court to appoint a conservator to handle your financial affairs, which is important if you want to avoid a public court proceeding that will take months and be very costly. Identify someone you trust to handle your financial matters and create an updated Power of Attorney with appropriate powers that will allow them to help you when you need it.

2. Create a Comprehensive List of your Assets and Other Important Information

When we work with clients on settling an estate or trust, one of the most frustrating aspects of the process is their inability to locate information about a deceased’s current assets, debts, or benefits. To make this process easier for your family, create a comprehensive list of your assets including real estate, bank accounts, IRAs, 401(k)s, brokerage accounts, life insurance, annuities and any other assets you have or that your family or estate would be entitled to receive at your death. Include account numbers.

If you have valuable personal property – like artwork, or sports collectibles – provide as much information as you can about the provenance of those items, the purchase price (if applicable), and any trusted source for appraisal or sale of the items after death if that is anticipated. If you have cryptocurrency, provide detailed information about how to access those assets. If you have cash or gold stored at home or offsite, provide information about where to find those assets.

As to any bills you pay on a regular basis – monthly, quarterly, annually – describe from what account each bill is paid if paid automatically. Provide the names of the financial institutions and account numbers for mortgages and car loans.

Include the name and contact information of your attorney, your accountant or tax preparer, your insurance agent and your financial advisor, if any.

In addition to asset information, think about other information that would be useful for your family to have if you were suddenly unavailable, such as:

  •  A list of employers from whom you receive, or from whom your beneficiaries may be entitled to receive, pension or other group benefits;
  • Information regarding your health insurer, including any Medicare supplement and long-term care insurance policies;
  •  A list of your active credit cards, along with any rewards programs;
  • Access information for safe deposit boxes or storage facilities;
  •  A list of your online accounts, usernames and passwords (more on this below); and,
  •  Home alarm codes and contact information for the alarm company.

This is not an exhaustive list but is intended to help you start thinking about what your family would need to know. Pay attention to the tasks you handle for your household and ask yourself, what would someone need to do this?

Make sure a trusted person knows where to locate the list after it is created. And finally, review this list every six months or so and keep it updated.

3. Keep an Updated List of Your Usernames and Passwords

More and more of our life is lived online these days. It is important to leave instructions for those who may need them to access important information that is only accessible online. For example, you may pay all of your bills online or receive account statements via email, you may have online savings accounts that do not exist in a brick and mortar bank, you may have cryptocurrency, or photos stored in an online photo storage site you want family members to be able to access after your death. For all of these reasons and many more, create a list of your username and password for those websites and other online accounts that will be important for someone to access after your death. If you store this information in an online password manager, leave the password for that password manager account. Then, keep this list in a safe place that is known to a trusted person or two who can locate the information when needed. And as with the other lists mentioned above – keep this updated as usernames and passwords change and new online accounts are created.

4. Review and Update your Beneficiary Designations.

Many of your most significant assets – life insurance, retirement accounts, annuities – will be paid to a designated beneficiary at your death. Make sure your beneficiaries are designated properly and consistent with your estate plan. Properly designating beneficiaries is more complicated than it may appear. Understanding the implications of certain beneficiary designations is crucial. For example, this can be especially significant in estate planning for a minor or disabled child. A trust for the benefit of a young or disabled beneficiary can be instrumental in avoiding a lengthy and costly court proceeding to appoint a guardian and in avoiding the loss of public benefits a disabled beneficiary may be receiving. Understanding how distributions from retirement accounts work after the death of the account owner, and how different beneficiary designations will impact the size, frequency and income tax payable on those distributions is crucial to making appropriate designations. Work with your estate planning attorney to be sure you understand how your beneficiaries should be designated, and then confirm they are designated in the appropriate way to ensure your estate plan will work as intended.

After your beneficiaries are designated, it is a good idea to confirm those beneficiary designations from time to time. It is not uncommon that when financial advisors move from one company to another, or when employer-sponsored retirement plans change custodians, the beneficiary designation does not carry over. Requesting written verification of your beneficiaries and maintaining that confirmation with your records is also a good idea.

5. Make sure your assets are properly titled in your Trust.

A Trust is an estate planning tool that is used to accomplish many goals including asset management, probate avoidance and estate tax savings. However, simply creating a Trust will not in itself achieve those goals; it is necessary to “fund” the Trust by titling assets in the name of the Trust or designating the Trust as the beneficiary of assets such as life insurance.

Your estate planning attorney should provide you with instructions for funding your Trust consistent with your estate plan. If you have received trust funding instructions but haven’t yet gotten around to doing the work necessary to retitle your assets or designate beneficiaries properly, take the time to do that now. It will make all the difference in achieving those planning goals.

Maria C. Baler, Esq. is an estate planning and elder law attorney and partner at Samuel, Sayward & Baler LLC, a law firm based in Dedham. She is also a former director of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA), and the former President of the Board of Directors of the Massachusetts Forum of Estate Planning Attorneys. For more information, visit www.ssbllc.com or call (781) 461-1020. 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.

November 2024
© 2024 Samuel, Sayward & Baler LLC

What is an Irrevocable Life Insurance Trust (ILIT)?

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By Attorney Maria C. Baler

Under federal law your estate will not pay an estate tax when you die unless the assets you own at the time of your death (your so-called “taxable estate”) are valued at more than $13.6 million (in 2024).  This is a big number, and most people don’t come close to having to pay a federal estate tax at death.  But here in Massachusetts, we have a separate state estate tax with a much lower $2 million exemption amount for those whose deaths occur on or after January 1, 2023 ($1 million prior to that date).  Given the value of our real estate and many people’s growing 401k accounts, it is not hard to get to a $2 million taxable estate if you are a Massachusetts resident.  What this means is that your estate will pay estate tax at your death, or if you are married at the death of the surviving spouse, unless you undertake planning to reduce or eliminate the tax.

One of the assets people own that drives up the value of their taxable estate at death is life insurance.   Although life insurance proceeds are not income taxable to the recipient of the death benefit, if you own a life insurance policy insuring your own life, the death benefit of that policy will count toward the value of your taxable estate at your death and will be subject to estate tax.  It is not uncommon for parents of young children, business owners, or those with sizeable estates or large mortgages to own a life insurance policy with a death benefit of $1 million or more, to provide an influx of cash at death.  These funds may be earmarked to help pay living expenses for their survivors,  education expenses for children, to pay off a mortgage, or to provide cash to pay estate tax at death.  

But how do you attain the benefits of a large life insurance policy on your life while not paying estate tax on the value of that policy at your death? An irrevocable life insurance trust may help you have your cake and eat it too.

An Irrevocable Life Insurance Trust (ILIT) is used to exclude the death benefit of a life insurance policy from the insured’s taxable estate.  If your life insurance policy is owned by an ILIT (instead of by you) at the time of your death, it will not be included in your taxable estate and the death benefit of the policy will not be subject to estate tax.  This can save hundreds of thousands of dollars in estate tax depending on the size of the policy and the insured’s estate.

Although an ILIT has significant tax advantages, there are important factors to consider before deciding if an ILIT is right for you:

  • Once an ILIT owns the policy, you cannot get it back.
  • The ILIT will specify how the death benefit will be distributed at your death, and you cannot make changes to the provisions of the ILIT after it is created.  
  • You cannot be the Trustee of an ILIT that owns a policy insuring your life. 
  • If you transfer ownership of your life insurance policy to an ILIT but die within three years of the transfer, you lose the estate tax break.  The way to avoid this three-year survivorship requirement is to create an ILIT that purchases a new policy on your life.

In addition to the above, there are certain steps that must be followed each time a premium payment is made which are crucial to the effectiveness of the ILIT.  Because the ILIT owns the policy, it is responsible to pay the premiums each year.  Unless the ILIT has a reserve of cash, you will need to contribute money to the ILIT each year so that the ILIT will have funds available to pay the premium.  These contributions will be considered gifts by you to the ILIT. In order for these gifts to qualify for the favorable gift tax annual exclusion (which avoids the need to file a gift tax return reporting the gift), the Trustee of the ILIT must give the beneficiaries notice each time a contribution is made, including notice of their right to withdraw amounts contributed to the trust so the contribution qualifies as a present gift.  These notices, called Crummey notices, are named after a court case that fleshed out these requirements and allow the contributions to qualify for the annual gift tax exclusion.  If the beneficiaries of the ILIT do not withdraw the amounts contributed, the Trustee will use the contributed amount to pay the policy premium, and this process will be repeated each year a premium is due.

Although an ILIT removes the life insurance policy from your ownership and control, for most people who own large term life insurance policies this is not a significant disadvantage as those policies do not benefit the owner of the policy during the owner’s lifetime.  On the other hand, transferring ownership of such a policy to an ILIT can result in significant estate tax savings to your family following your death.

To learn more about whether an ILIT is an appropriate estate tax planning strategy for you, contact us and make an appointment to consult with one of our experienced estate planning attorneys.

 

Maria Baler, Esq. is an estate planning and elder law attorney and partner at Samuel, Sayward & Baler LLC, a law firm based in Dedham. She is also a former director of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA), and a past President of the Board of Directors of the Massachusetts Forum of Estate Planning Attorneys. For more information, visit www.ssbllc.com or call (781) 461-1020. 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.

October 2024

© 2024 Samuel, Sayward & Baler LLC

 

Estate Planning on a Different Court

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It is not often that sports and estate planning intersect, but two of my favorite things did so recently when the New York Times (and many other sources) reported that the Grousbeck family, the controlling owner of Boston Basketball Partners LLC which owns a majority interest in the Celtics, announced that it has decided to sell the basketball team. The Celtics’ statement said the sale was prompted “after considerable thought and internal discussion” by “estate and family planning considerations.” Although the statement was short on details, it is suspected that 90-year-old H. Irving Grousbeck is the one driving the sale. His 63-year-old son Wyc Grousbeck, one of Irving’s four children, owns a relatively small stake in the team himself, but manages his family’s controlling interest.

So why would you want to sell the Boston Celtics, a team that less than two weeks before the sale was announced won their 18th NBA Championship and have most of their team under contract for the foreseeable future? For estate planning reasons, of course! Here’s some insight into what Irving and his estate planning attorneys might be thinking.

Taxes Might Be Driving the Team Bus
Irving and his ownership group bought the team for $360 million in 2002. Today, after winning its latest championship, the team is worth an estimated $4.7 billion. That’s a nice return on investment, but nothing comes without a price.

If Irving dies owning an interest in the Celtics, that interest will be an asset of his estate, and the value of that interest will be subject to estate tax at his death. Although Irving hails from Northampton, Massachusetts (which might explain his interest in owning the hometown team), he currently lives in Portola Valley, California. Although the weather may have played a part in the decision to move west, there is also an estate tax advantage. California (unlike Massachusetts) is one of the majority of states that do not impose a separate state estate tax on its residents.

However, when you own an interest in an asset that’s worth billions of dollars (not to mention the value of your other assets), you need to worry about the federal estate tax, which is a tax imposed on assets owned at death which exceed $13.6 million (in 2024). Assets over this threshold are taxed at a whopping 40%.

So how does selling the team help Irving potentially save estate tax for his family? If Irving sells his interest, he will still have the same amount of assets (less some capital gain tax of course), but rather than an interest in a basketball team, he will have cash. Cash is much easier to plan with. Here are some ways Irving might use that cash to save some estate tax:

  • Irving can give a bit of that cash to anyone he likes. The gift tax annual exclusion allows Irving to give $18,000/year to any person without having to pay a gift tax or file a gift tax return, and without reducing the $13.6 million federal estate and gift tax exemption Irving has to use against the value of his estate at his death. But even after giving annual exclusion gifts to Wyc and his siblings, and to Jayson Tatum, Jaylen Brown, Jrue Holiday, Derrick White, and the rest of the team, Irving will still have a lot left.
  • Irving can pay tuition for his grandchildren without limitation – gifts made to an educational institution for tuition (or to a medical institution for medical care) can be made in an unlimited amount without any gift tax implications.
  • Next on the tax savings idea list may be giving a bunch of money to charity, which will reduce Irving’s taxable estate without reducing his exemption. Doing so will also provide a nice income tax benefit to Irving currently.
  • Irving might also want to consider making larger, “taxable” gifts before the end of 2025. The current federal estate tax law is scheduled to “sunset” or end on December 31, 2025. If Congress does not act before that date, the prior law will come back into effect. This means that the current $13.6 million estate and gift tax exemption will drop to approximately $7 million. Because making taxable gifts during your lifetime reduces your estate/gift tax exemption, Irving may be thinking about making some larger taxable gifts to take advantage of his $13.6 million exemption before that exemption drops down to $7 million and he loses the opportunity to give away that extra $6.6 million estate and gift tax free.
  • Irving may also wish to consider “skipping” a generation with his gift-giving, as giving gifts directly to grandchildren will avoid estate tax on those assets when his children pass away.

Again, easier to do any of these things with cash than with an interest in a basketball team. If Irving is serious about gifting, he can reduce the value of his taxable estate significantly, benefiting his family and charity in the short term, and benefitting his family in the long term by reducing the estate tax they will have to pay at his death. Keep in mind that for every dollar Irving gives away he is likely saving his family $0.40 in estate tax when he dies.

Another reason to cash out now is the estate tax that is likely to be due at Irving’s death. Whether Irving dies before or after the current estate tax law sunsets, and even if Irving makes gifts to reduce the value of his estate, the federal estate tax payable on Irving’s estate will be significant. And the IRS does not accept Celtics tickets, even if they are courtside playoff tickets, in payment of the estate tax bill. They deal in cash only. So, better to liquidate a large asset now and free up some cash for the estate tax bill that’s coming due. When you are 90 years old, that bill could come due and payable sooner rather than later.

Succession Planning Is Difficult On and Off the Court
When you have multiple children and one special asset, planning can be challenging. That asset could be a family business, a beloved vacation home, or a racehorse. All of these things are valuable, valued by some or all family members, and illiquid – a difficult combination.

Wyc has done a great job being the face of the majority ownership group for years. However, Irving probably wants to benefit each of his children equally in his estate plan, even if only one of them has given him the joy of an NBA championship this year.

If Irving dies owning the team, Wyc may want to keep the team, but his siblings may want to sell, creating potential family disharmony. Sometimes, it’s possible to give one child who may be involved in the family business, for example, that particular asset and give other assets to the other children while still equalizing the value of assets everyone receives and maintaining family harmony. And it may even be the case that Wyc’s siblings care nothing about basketball and would be happy for him to receive Irving’s ownership interest in the Celtics when Irving passes if they get other assets of equal value. The problem for Irving is that when you have a basketball team that’s worth a whole lot (and likely to keep appreciating in value, at least in the short term) it’s hard to equalize things for your other three children unless you have a whole lot of other assets. Selling Irving’s interest in the team now will allow for easier equalization of his assets among his children at his death, which will simplify Irving’s estate. This is an issue faced not just by Irving, but by the owners of all professional sports franchises.

Although we estate planning attorneys may make it look easy, estate planning is complicated – especially for those individuals who hold our beloved sports teams’ destinies in their hands. Assuming you don’t own a professional sports franchise, your personal estate planning situation may not be as complex, but good estate planning advice is important for everyone who wants to make sure their assets pass efficiently and harmoniously to their intended recipients.

Maria Baler, Esq. is an estate planning and elder law attorney and partner at Samuel, Sayward & Baler LLC, a law firm based in Dedham (and a Boston Celtics fan). She is also a former director of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA), and a past President of the Board of Directors of the Massachusetts Forum of Estate Planning Attorneys. For more information, visit www.ssbllc.com or call (781) 461-1020. 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.
August 2024
© 2024 Samuel, Sayward & Baler LLC

 

Five Ways to Maintain Your Independence As You Age

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By Attorney Maria C. Baler

July 4th is Independence Day, a day Americans celebrate our country’s independence from Great Britain marked by the date in 1776 when the Declaration of Independence was approved by the Continental Congress. Independence was important to the new colonies because it represented freedom from being subject to the laws and taxes of a country an ocean away. This is such an important day for our nation that it continues to be celebrated almost 250 years after the event took place.

Individuals value their independence too. As my clients get older, one thing I hear consistently from them is their desire to continue to make decisions for themselves, live where they want to live, receive needed care in a setting they choose, and choose the people who provide assistance to them if needed. Here are five ways to maintain your independence as you age.

1. Have Appropriate Legal Documents in Place

The legal documents that will allow you to maintain your independence during your lifetime are those that allow you to name people you choose to assist you with legal, financial and health care decision-making at such time as you need that assistance.

These documents include a power of attorney, which names a trusted person to make legal and financial decisions for you, and a funded revocable trust that allows a successor Trustee whom you choose to step in and manage trust assets for your benefit. These documents will be important if you become ill and are unable to pay your bills, including payment for care you may need in the setting you have chosen. Creating a power of attorney and funded revocable trust while you are well will ensure that there will be no obstacles for trusted people to obtain access to funds to pay for your care, even if you are unable to act.

Equally important is a health care proxy that names a person you choose to make health care decisions for you if you are unable to make or communicate those decisions yourself. A well- drafted health care proxy will also give your health care agent the ability to choose where you will be cared for and to move you from one care setting to another.

Without these documents, a Court will appoint someone chosen by the Court, and not by you, to serve as your guardian to make health care decisions for you and your conservator to manage your assets.

2. Create a Life Plan and a Team to Implement It

Just as important as creating appropriate legal documents is to have a team in place that will help implement your wishes and carry out your instructions when the time comes. As you get older, make sure you have trusted advisors such as an estate planning attorney, an accountant, and a financial advisor who are all familiar with your personal and financial situation and your wishes, and who can assist your appointed decision-makers if you are no longer able to make decisions for yourself.

Explore potential care settings with your advisors and the cost of care and determine what care options may be best for you, and how that care will be paid for if necessary.

Make your wishes known to your team and your appointed decision-makers. This can be as formal as a written care plan, or as informal as conversations with these people to make your wishes clear and ensure they understand you are counting on them to carry them out.

3. Enlist Care Managers if Needed

A life care manager, sometimes called a geriatric care manager, is a person who is hired to assist you or your family to create an appropriate plan for care. Care managers are especially important and effective for people who may want to remain and be cared for in their home. This type of care requires a lot of coordination, communication and problem solving. This can be difficult for family members who may live at a distance or who may not have the time to take on this responsibility.

A care manager can take the burden of arranging and supervising care off of your family, take the time to understand the type of care you want, and implement those wishes. Care managers may also accompany you to doctor’s appointments or emergency room visits, communicate regularly with family members at a distance, and coordinate and advise loved ones regarding your care needs.

4. Build a Supportive Community Around You

Maintaining your independence requires more than legal and financial considerations. In addition to trusted decision-makers and care managers, maintain relationships with friends and family members you enjoy being around as you age. Spending time with people you enjoy prevents isolation, loneliness and depression which negatively affects your health. Having these folks around when you want and need their support starts by building and keeping those relationships as you age.

5. Make Sure Your Home Is An Ally In Your Fight for Independence

Many of us have lived in our homes for many, many years, and want to remain there to live out our lives. But many homes are not well-suited to aging in place – they have long flights of stairs inside or outside the home, they have narrow doorways that don’t accommodate a wheelchair, they have bathrooms that may be small and hard to maneuver around with a walker and lack grab bars and other things that make it easier for someone with mobility issues to navigate safely.

Before you encounter mobility issues, take an objective look at your home and think about what changes would need to be made to make your home more accessible. Is it possible to enlarge the doorways or the bathroom? Do you have a bathroom on the first floor of the home? Do you have a bedroom on the first floor, or could a first-floor room be converted into a bedroom if necessary? Can your stairway accommodate a chair lift? Are you able to get in and out of your home to a car safely?

If your home is not one that is easily or cost-effectively adaptable to aging in place, consider a move to a home in which you can age in place comfortably and affordably. And make such a move before living in your home becomes an obstacle to your independence and your ability to remain there.

On this Independence Day, consider your wishes for your own independence as you age, and take steps now to make it a reality. Although your independence may not be celebrated with a parade and fireworks, you will certainly celebrate the fact that you are able to carry on as you age as you choose, with assistance from trusted advisors and in your chosen location.

Maria C. Baler, Esq. is an estate planning and elder law attorney and partner at Samuel, Sayward & Baler LLC, a law firm based in Dedham. She is also a former director of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA), and the former President of the Board of Directors of the Massachusetts Forum of Estate Planning Attorneys. For more information, visit www.ssbllc.com or call (781) 461-1020. 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.

July 2024
© 2024 Samuel, Sayward & Baler LLC

What’s New at Samuel, Sayward & Baler LLC – Don’t Miss Our Spring 2024 Newsletter

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Attorney Maria Baler discusses our Spring Newsletter, 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.

Wills • Trusts • Elder Law • Long-Term Care Planning • Estates

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