Estate Planning

Estate Planning and Gratitude

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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

How a Marriage or Divorce Can Affect Your Estate Plan

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When it comes to estate planning, understanding how major life events like marriage and divorce can affect your estate is crucial. These events can significantly impact the distribution of your assets if they are not properly addressed in your estate plan. Here’s what you need to know to ensure that your estate plan remains effective and reflects your current wishes.

Marriage: Premarital Wills

If you get married after executing a will but you never get around to updating your will to include your spouse, your premarital will stays in place at your death. However, Massachusetts law allows the surviving spouse to take his or her intestate share of your estate before your property is distributed under your will. The surviving spouse’s intestate share is the share that the spouse would have received if you died without a Will. This is called an “elective share” of your estate, and your spouse can claim this share regardless of what your premarital will says. 

If your premarital will gives property to your child who was born before your marriage and who was from a prior relationship (i.e., not also your spouse’s child), then the surviving spouse’s elective share is taken from the portion of the estate that you did not give to such child. The amount of the elective share that the surviving spouse can take depends on several factors, such as whether you had children with your spouse, whether either of you had children from prior marriages or relationships, and if neither of you had children but you die with a living parent. 

There are exceptions to this rule. If you knew you were getting married, you could have stated in your premarital will that it is being made in contemplation of marriage to your spouse and your will is to be effective notwithstanding any subsequent marriage. But if marriage was the last thing on your mind when you made your will, then you need to revise your premarital will to avoid potential conflicts and ensure that your estate is distributed according to your wishes.

Divorce: Automatic Revocation of Provisions 

If you have a will and subsequently get divorced from your spouse, any provisions you made in your will for your spouse are automatically revoked. This also applies to beneficiary designations on life insurance and retirement plans, transfer-on-death accounts, and any other revocable disposition. If your will named your former spouse or family members of your former spouse as Personal Representative of your estate, those designations are treated as if the former spouse predeceased you. However, if you and your former spouse later marry each other again, then the previously provisions in your will are revived.

This automatic revocation only applies if you are really divorced, not if you are just separated, and not if your divorce is not yet final.

Although the automatic revocation of dispositions to your spouse may seem to do the trick, they can wreak havoc on an estate plan and create unintended consequences. You may intend to benefit your former spouse even after your divorce with life insurance or some other asset, but the beneficiary designation is automatically revoked upon your divorce. Additional steps must be taken to ensure that designation will stick after the divorce occurs.

After a divorce, revising your will is essential to remove your former spouse (or include them, if you want to provide for your former spouse) and make any other necessary changes, such as updating your named Personal Representatives. 

All this is to say that significant life events, whether through marriage or divorce, can dramatically alter your estate plan and result in unintended consequences. By proactively revising your will and other estate planning documents when these events happen, you can ensure that your estate is handled according to your wishes and that your loved ones are provided for as intended.

Attorney Brittany Hinojosa Citron is an associate attorney with the Dedham, Massachusetts, firm of Samuel, Sayward & Baler LLC which focuses on advising its clients in the areas of 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 or to schedule a consultation with one of our attorneys, please call 781-461-1020.  

July 2024

 

© 2024 Samuel, Sayward & Baler LLC

Is maintaining harmony among your children important to you?

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Attorney Abigail Poole discusses the importance of maintaining harmony among your children, 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.

Talking to Your Parents about Estate Planning

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With Father’s Day just a few days away, now is the perfect time to initiate a meaningful conversation with your parents about estate planning, blending the celebration of your parents’ legacy with the practical steps needed to preserve it. Despite its importance, only 33% of people in the United States have executed some form of legal estate plan. The sensitive nature of the topic causes many people to kick the can down the road, intending to deal with it later, which is a problem when “later” becomes “too late.” Are your parents included in the overwhelming majority of people who have pushed off this essential legal planning?

Contrary to popular belief, estate planning is not just about distributing assets after a person’s death. Some documents, like a Health Care Proxy and Durable Power of Attorney, actually work during the person’s lifetime so that loved ones have the authority to take care of the person while he or she is living but incapacitated. With aging parents, these documents are just as important as post-death documents like Wills and Trusts. More significantly, estate planning is about ensuring that your parents’ wishes are respected and that their legacies are preserved in a way that reflects their values and intentions.

Initiating this important conversation with your parents may be daunting, so follow these steps to make the discussion a little easier:

Start the discussion by framing it within the context of Father’s Day, emphasizing your desire to honor your parents’ legacy and ensure that their contributions are remembered and cherished. If you feel comfortable, you can briefly discuss key documents such as Wills, which outline the distribution of assets, and Trusts, which can reduce estate taxes and avoid the probate process. You should also highlight the importance of incapacity documents like a Health Care Proxy, HIPAA Authorization, and Durable Power of Attorney. These documents will make it easier on your family if your parents’ capacity is diminished to the point that they cannot make their own medical or financial decisions. Incapacity documents are a safeguard against a long, expensive court process to obtain a guardianship and/or conservatorship that can occur when your parents do not plan ahead.

It’s important to remember that you won’t have all the answers – and you’re not supposed to. That’s our job. Encourage your parents to set up a meeting with an estate planning attorney who can discuss their needs in more detail, give them information about the documents appropriate to their situation, and answer any questions they may have. Father’s Day can be the first of many conversations that ensure your parents’ estate planning remains current and effective. By simply starting the conversation, you’re taking the first step in giving your parents the gift of peace of mind, knowing that their legacy will be honored and their wishes respected, all while strengthening your family’s future security.

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

 

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