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Do Fundraised Assets Belong to the Estate?

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Can money raised on GoFundMe become part of someone’s estate? Attorney Brittany Citron breaks down how fundraised assets may be treated in estate planning, what families should know, and why proper planning matters. If you’re organizing a fundraiser or thinking ahead for loved ones, this is an important conversation to have.

Broken Hearts and Lost Inheritances: Protecting Money Left to a Divorcing Child

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It’s almost Valentine’s Day, a celebration of all types of love in your life. But sometimes love doesn’t work out, and it’s important to plan ahead to protect your assets from the worst-case scenario.

A common concern for clients is what happens to their child’s inheritance if that child goes on to get a divorce. The fear is that a portion of the hard-earned inheritance left to their child will instead pass to the divorcing spouse. Depending on the state where the divorce is taking place and the nature of the couple’s assets, this is an entirely real possibility, especially in a state such as Massachusetts with its open-ended divorce law.

The best approach to solve this is for your child to enter into a legally binding prenuptial agreement, often called a prenup, before marriage. A prenup can dictate that inheritances are considered the separate property of each spouse. In the case of a divorce, that separate property would not be divvied up with the other joint marital assets but instead stay with the spouse who inherited the assets.

However, sometimes it is too late to get a prenup or the parties involved are resistant to get one. An alternate approach then would be to add protections to your child’s inheritance in your estate plan.

A simple will, trust, or beneficiary designation on an account will give assets to your adult children outright and free of trust. This means that the assets become the child’s assets with no strings attached. In some states, there are some built-in protections for inheritances so long as they don’t become co-mingled with joint assets, i.e., the inheritance remains in a separate account and isn’t used on a joint purchase. However, this is not the case in Massachusetts.

The solution is to give assets to your children in trust. This means that your child will need to ask a trustee to access their inheritance, and the trustee will give the child money according to the standards set up in the trust. A child can be named as the trustee of their own trust share holding their inheritance (meaning they would just need to ask themselves), though for optimal protection another trustee should be named as co-trustee or sole trustee. Because the assets remain in trust, they never become your child’s property. The theory is that these assets are thus not divisible during the divorce.

A couple of caveats: divorce laws are constantly changing particularly in this area as more and more divorcing couples have their wealth established in significant part due to their inheritances. There is no guarantee that a trust set up now will work years in the future. Second, in Massachusetts, a divorce judge divides marital assets “equitably”, not “equally”. A judge could thus give a bulk of the marital assets to one spouse because the other spouse has a large inheritance (even if that inheritance is locked away in a trust). This may not matter much if the inheritance includes assets such as a family vacation house or the like where it’s not just about protecting money from going to the divorcing spouse but rather specific assets.

Even with these caveats, leaving assets in trust for your children is a great way to protect the assets in case your child divorces. Additionally, if your child lives in Massachusetts or another state with estate tax (or qualifies for the federal estate tax), these trust shares provide an estate tax reducing benefit for your child when they pass away.

Five Ways a Trust Is Better Than a Will

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When people hear the word “Trust,” they often picture something complicated, cumbersome, or reserved for the ultra-wealthy. In reality, Trusts are incredibly practical tools for everyday families – and in many cases, they’re far more effective than a simple Will. Although Wills serve an important purpose, a well-drafted Trust can offer protections and flexibility that a Will simply can’t provide. Here are five key reasons why a Trust may be the better choice for your estate plan.

  1. Trusts Avoid the Lengthy, Expensive Probate Process

Probate is the legal process of settling an estate – and it’s rarely quick or inexpensive. Even in straightforward cases, probate can take months. In more complicated situations, it can drag on for a year or longer, tying up assets your family may need right away. If your estate plan consists of only a Will, all assets owned in your sole name must be probated after your death in order to pass to your beneficiaries – even though those beneficiaries were named in the Will. The beneficiaries can only receive your assets after the probate process is complete. Typically, that takes a minimum of one year, but it could take much longer depending on complications like creditors who may make claims against your estate.

Because assets held in a Trust are not subject to probate, your beneficiaries can receive distributions much faster. There’s no waiting for a Court to appoint a Personal Representative or approve an accounting. Simply put, Trusts make things smoother, faster and more efficient for the people you leave behind. 

  1. Trusts Keep Things Private

As mentioned above, one of the biggest advantages of a Trust is that, if drafted correctly, it operates entirely outside the court system. Part of the probate process is submitting your Will, along with the value of the assets in your probate estate, to the probate court. Probate filings are public record, meaning anyone can read your Will, the value of your estate, and even the details of family disputes that may arise.

A Trust, on the other hand, allows your assets to pass directly to your beneficiaries without court oversight and court filings. That keeps your financial information private and spares your loved ones from unnecessary paperwork, delays, and stress. 

  1. Trusts Allow for Estate Tax Planning

Estate tax planning is another area where Trusts really shine. Your taxable estate consists of the combined value of all your financial accounts (checking, savings, brokerage, retirement, etc.), plus the equity in your real estate, and – here’s the big kicker – life insurance proceeds. In 2026, the federal estate tax exemption is $15 million, which does not affect most people. However, the Massachusetts estate tax exemption is $2 million. This means that if your total taxable estate is valued above $2 million at your death, your estate will owe an estate tax.

If you’re married, there is no estate tax due on the death of the first spouse, even if that spouse’s assets are over $2 million. However, on the death of the second spouse, 100% of the assets in that spouse’s name (often including leftover assets from the first spouse) are includable in the second spouse’s taxable estate. For example, if you have a $1 million life insurance policy, your spouse has a $1 million life insurance policy, you have $600,000 of equity in your house, and you have $400,000 in investments and retirement accounts, your taxable estate is somewhere around $3 million. This would require payment of approximately $82,000 in Massachusetts estate tax on the second spouse’s death. 

If you’re married, Trusts can include estate tax savings provisions that can minimize or even eliminate these estate taxes. For married couples, certain Trust structures can preserve exemptions and reduce the overall tax burden. A Will alone offers very limited options for this kind of planning. If you’re anywhere near that $2 million threshold, a Trust can be a powerful tool to protect more of what you’ve worked so hard to build.

  1. Trusts Can Protect Assets for Your Children

Estate planning isn’t just about deciding who gets what – it’s about how, when, and under what conditions your assets are passed to your beneficiaries. Many parents are uncomfortable leaving their children a large inheritance outright, and for good reason. Once assets are distributed directly to a child, those assets become vulnerable to future creditors, lawsuits, divorces, or even poor financial decisions. 

With a Trust, you have options for how to distribute assets to your children. One option, which allows for much more protection than an outright distribution, is to hold your children’s inheritance in Trust for their lifetimes. This type of protected distribution allows your child to use the assets, while keeping them out of reach of potential future creditors. This way, you’re able to give your children a type of asset protection that they can’t give themselves. It’s a smart way to provide support without unintentionally creating risk.

  1. Trusts Allow for Supplemental Needs Planning

If you have a beneficiary with a disability or someone receiving government benefits such as SSI or Medicaid, a Trust is essential. Leaving assets outright – or even through a Will – can inadvertently disqualify that person from critical benefits by pushing them over the required asset threshold for some public benefits.

Make sure to plan ahead by creating Trust that, upon your death, holds this beneficiary’s inheritance in a Supplemental Needs Trust specifically designed to enhance the beneficiary’s quality of life without jeopardizing their eligibility for government programs. This allows you to provide meaningful support while preserving access to benefits that may be worth far more than the inheritance itself.

While Wills still have their place in estate planning, Trusts offer greater control, privacy, flexibility, and protection.  From avoiding probate and minimizing taxes to safeguarding your children and planning for special needs, a well-drafted Trust can do far more than a Will ever could. At its core, estate planning is about taking care of your family – even when you’re no longer here to do it yourself. A Trust helps ensure that care continues seamlessly, thoughtfully, and exactly the way you intended.

Attorney Leah A. Kofos is an 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.

© 2026 Samuel, Sayward & Baler LLC

 

Planning for Incapacity Protecting Your Future & Preserving Your Assets

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Life is unpredictable, and having a comprehensive plan in place is the most effective way to protect yourself and your loved ones. Join us for a dinner and informative presentation exploring the essential legal steps necessary to navigate potential incapacity. We will discuss how to address personal and legal challenges, strategies for asset preservation, and the importance of having a plan that ensures your wishes are honored.

Limited space. Kindly RSVP to Senior Advisor Taylor Burns.
781.251.6630 | tburns@bridgesbyepoch.com

Key Issues to be Aware of When Transferring Real Estate to a Revocable Trust

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Transferring a home or other real estate into a revocable living trust is a common estate planning strategy designed to avoid probate, maintain privacy, and streamline management of property during incapacity. While the concept sounds straightforward, the process can raise legal, financial, tax, and practical issues that are often overlooked. Understanding these considerations in advance will help prevent unintended consequences and costly corrections later.

Below are some important issues to keep in mind when transferring real estate to a revocable trust.

1. Creating a Trust does not mean the Property is in the Trust. 

A common misconception is that once a trust is signed, your property is automatically part of it. Unfortunately, that is not the case. To receive the benefits of probate avoidance, privacy, and easier management, the property must actually be transferred into the trust. 

For real estate, this means preparing a new deed that transfers ownership from the current owner(s) to the trustee(s) of the trust. That deed must then be properly signed and recorded at the appropriate Registry of Deeds. Without this step, the property remains outside the trust – even if the trust itself has been signed.

2. Mortgages Require Extra Attention

If the property has a mortgage, it is important to understand how a transfer to a trust may affect the loan. Many mortgages include a “due-on-sale clause”, allowing the lender to demand full repayment if ownership changes. 

The good news is that federal law – the Garn-St. Germain Act – generally protects homeowners in this situation. The Act prohibits a lender from invoking the due-on-sale clause with respect to most residential property, provided the property is transferred to one of the people/entities listed in the Act.  When residential property is transferred to a revocable living trust and the borrower remains a beneficiary of that trust, the lender is not allowed to enforce the due-on-sale clause solely because of the transfer.

That said, this protection does not always apply to commercial real estate or commercial loans. If your property falls into that category, reviewing the loan documents before making the transfer is essential. 

3. Don’t Forget About Homeowner’s Insurance. 

Any change in property ownership should be reported to your homeowner’s insurance company. Failing to do so could create coverage problems if a claim arises after the transfer. 

It is important to advise the homeowner’s insurance company of any change in the title/ownership of real property to ensure that coverage remains in place following the transfer. In most cases, the solution is straightforward: the Trust or Trustees are added as an additional insured or named insured on the policy. A quick call to your insurance agent can usually take care of this step.

4. Review Your Title Insurance Coverage

Title insurance is a type of insurance that protects property owners and lenders against losses caused by problems with the legal ownership (i.e. title) of real estate which were not discovered at the time the property was purchased. If you have a mortgage, you likely paid for a lender’s title insurance policy at closing. This policy protects the lender—not you.

Owner’s title insurance, which is optional and is purchased at an additional cost, protects the property owner and generally lasts as long as that person owns the property. An Owner’s Title Insurance policy is for the benefit of the owner of the property and the coverage remains in effect so long as the person owns the property which is where transferring the property to a Trust can be a trap for the unwary.  This is where transferring property to a trust can sometimes cause confusion. Newer title insurance policies often state that coverage continues after a transfer to a revocable trust where the owner remains a beneficiary. Older policies may not include this language.

Title insurance policies issued in the last 10 years or so often contain a provision specifically stating that coverage remains in effect following the transfer of the property to a revocable trust of which the owner is a beneficiary.  If your policy is older, the title company may require an endorsement to reflect the new ownership and keep coverage in place.

Transferring real estate to a revocable trust can be a smart and effective planning tool, but it is not simply a paperwork exercise. The above represent just a few of the issues that should be considered when transferring real estate.  Paying attention to deeds, mortgages, insurance, and title coverage can help ensure the transfer works as intended. With thoughtful planning and professional guidance, you can protect your property, preserve valuable benefits, and avoid unintended consequences down the road.

 

Attorney Leah A. Kofos is an 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

5 Estate Plan Resolutions

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Happy New Year! 

It’s now 2026, and many of us are looking for ways to start the new year on a good foot. In this week’s article, we look at 5 Estate Plan New Year’s Resolutions. 

1. Review/Update your Estate Plan

After setting up your estate plan, it’s nice to sit back and take a sigh of relief. However, your estate plan is not something you should neglect after completing it. Every couple of years or so (or after any major event in your life), you should review your estate plan to see if (a) your named fiduciaries still make sense, and (b) your distribution of your assets after death is still what you would like. For many families, there are two major transition points where they change their fiduciary designations from parents to siblings/friends and then from siblings/friends to their adult children. Marriages, births, and deaths in your family can also spark needed changes.

2. Organize Financials/Passwords for Fiduciaries

A comprehensive estate plan will have fiduciaries listed to help you if you become incapacitated and to manage your affairs after you’ve passed away. These agents have important jobs, and the best thing you can do to thank them is to organize your financial information and passwords in advance. Creating a spreadsheet of your financial accounts (including bank, retirement, investment, etc.) can be invaluable to the person who steps in to manage your affairs. In a similar vein, creating a system to allow others to access passwords to your email and other online accounts can make payments like utilities much easier for them. 

3. Trust Funding

If you created a trust as part of your estate plan, it is important to make sure your trust is funded properly. “Funding” a trust means to assign title of assets to your trust or to list your trust as a pay-on-death or transfer-on-death beneficiary. If your trust is not properly funded, assets may need to pass through your estate to get to your trust. This means that those assets will need to go through probate (often a major purpose of creating a trust is to avoid probate). You should reach out to your estate planning attorney with any trust funding questions to make sure you are optimally funding your trust.

4. Give Out Health Care Proxy

Your Health Care Proxy is your true “emergency” estate planning document that allows your listed Health Care Agent to make health decisions for you when you are unable to do so yourself. Because it may need to be activated unexpectedly, it’s important that your Health Care Proxy is accessible to others. We recommend that all your Health Care Agents, including back-ups, have copies (PDFs are fine) of your Health Care Proxy. We also recommend that you give a copy of your Health Care Proxy to your doctors (often this can be done online by uploading it to your Health Portal). Some phones also permit you to have a copy of your Health Care Proxy easily accessible in an app.

5. Talking with your Family about your Estate Plan

Talking about death and incapacity can be a difficult conversation, especially with your closest loved ones. However, for older clients in particular, having these discussions with your loved ones while you are able and healthy can make future trials easier on everyone. In this way, finding time to sit down with your family to review your estate plan can be extremely beneficial. Another similar approach that people take is to write letters to your loved ones to include in your estate plan binder. These letters can explain uncomfortable realities in your estate plan such as unequal distributions, favoring one child as a fiduciary over another, etc., and can do a lot to reduce tension after you pass away.

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

©2026 Samuel, Sayward & Baler LLP. All Rights Reserved. The information presented on this website should not be construed to provide legal advice, nor does it constitute the formation of an attorney/client relationship. Read the disclaimer.