Estate Planning

5 Things your Mom would Tell you if your Mom was an Estate Planning Attorney

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It being May, our thoughts are on longer days, warmer weather, graduations, and Mother’s Day. Being a mom myself, I can say with certainty that while I loved the gifts my children gave me for Mother’s Day, especially the hand-made ones when they were little, nothing warms a mother’s heart more than hearing her children say, “I followed your advice Mom and you were right.” (I think I can hear the mothers out there both agreeing and laughing hysterically…)

Read on for 5 Things your mom would tell you if your mom was an estate planning attorney.

1. Just Do It. Not to infringe on Nike, but if you’re an adult and you don’t yet have an estate plan, just do it. A basic ‘don’t leave home without it’ estate plan consists of a Will, Power of Attorney and Health Care documents. A Revocable Living Trust is an estate planning tool which can address many goals that people have when creating an estate plan such as probate avoidance, management of assets for young or disabled beneficiaries, and creditor protection for inherited assets left to children or other beneficiaries.

2. Get organized. This is the estate plan equivalent of ‘clean your room’ – something your mom may have said to you once or twice. But seriously, I often say to my clients that the best gift they can give to their families is to keep their records organized and updated. Would your family know what bills need to be paid and how to access the funds to pay them if you were incapacitated or at your death? Would they be able to easily discover what financial accounts you have? For many people their financial information is now available only via online access, and therefore they do not receive monthly statements in the mail. This can be a real problem if you have not prepared a list of your accounts (and, at the risk of horrifying IT people everywhere, your user names and passwords to access those online accounts) and made this information available to at least one trusted person. Consider what someone would need to figure out what you own and how to access it and prepare a road map.

3. Check your Beneficiary Designations. Many assets, such as retirement accounts, life insurance policies, and payable-on-death bank accounts, pass directly to beneficiaries when the owner passes away. It is crucial to review and update beneficiary designations regularly to ensure they align with your overall estate plan. Failing to designate beneficiaries or keeping outdated designations can lead to unintended consequences, such as assets passing to ex-spouses or deceased individuals. It can also have serious negative tax consequences when it comes to qualified retirement accounts. Reviewing your beneficiary designations on a regular basis is also important. When financial advisors change companies, the beneficiary designations that were set on the IRAs with the old company do not carry over to the new company. The fairly simple task of making sure the beneficiary designations are current will go a long way to ensuring a smooth, probate-free, and tax efficient transition of these assets at your death.

4. Make Sure Someone’s Watching the Children (Mom’s Grandchildren). For those who have minor (under age 18) children, it is vital to create a Will to name one or more people as the legal guardians for those minor children. The legal guardian of a minor child is the person who will have physical custody of the child and decide where child will reside, where the child will go to school, and oversee their religious education. The legal guardian is also the person who will have the authority to make medical decisions and have access to school records. However, naming someone in your Will as the guardian for your minor child does not confer the legal status of guardian; only a court can appoint a legal guardian. The naming of a guardian by parents in their Wills is an expression of their wishes which the court will honor (unless there is a valid objection raised but that’s a topic for a different day) but the process takes time. Because of that delay, parents should also sign a document appointing a temporary guardian for their minor children. Massachusetts has a statute that permits parents to appoint a temporary (for 60 days) guardian for their minor or disabled children. This allows time for the court to act to appoint the permanent legal guardian. The appointment of the temporary guardian does not require the involvement of the court.

5. Save Taxes if you can. When estate planning attorneys talk about taxes, we are usually referring to estate taxes. The estate tax is a transfer tax imposed on the value of assets transferred to beneficiaries when someone dies. There is both a federal and a Massachusetts estate tax. For both federal and Massachusetts purposes, assets that pass to a surviving spouse pass free of any estate tax regardless of the value of the assets. For assets passing to a person other than a surviving spouse, there is estate tax payable if the value of the estate exceeds the allowable exemption amount. In 2024, the federal estate tax exemption is $13.61 million and $2 million in Massachusetts. If your estate is at or above those levels, consult with an experienced estate planning attorney about planning to reduce estate taxes.

Creating and maintaining a comprehensive, up-to-date estate plan is a gift to your family that they will truly appreciate. If you don’t have an estate plan, or if it’s been more than five years since you’ve reviewed your existing plan, call us or email us to schedule an appointment with one of our estate planning attorneys. And Happy Mother’s Day to all the mothers out there!

Attorney Suzanne R. Sayward is a partner with the Dedham law firm of Samuel, Sayward & Baler LLC which focuses on advising its clients in the areas of estate planning, estate settlement and elder law matters. She is certified as an Elder Law Attorney by the National Elder Law Foundation, a private organization whose standards for certification are not regulated by the Commonwealth of Massachusetts. 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 our website at www.ssbllc.com or call 781/461-1020.

May, 2024
© 2024 Samuel, Sayward & Baler LLC

Estate Planning for the New Year

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As we move at what seems like the speed of light towards the new year, it is the perfect time to reflect on the past and set goals for the future. Beyond the usual resolutions, consider dedicating some time to comprehensive estate planning to prepare for the year ahead. This means taking proactive steps to organize your affairs and solidifying a sound financial and legal foundation for the upcoming year.

  1. Designate Beneficiaries
    One of the first steps to confirm your financial future (and your beneficiaries’ financial futures) while moving into the new year is to review and update your beneficiary designations, as necessary. This includes beneficiary designations for life insurance policies, retirement accounts, and annuities. You should ensure that the designated beneficiaries align with your current estate planning wishes, and that you have both primary beneficiaries and contingent (back-up) beneficiaries designated on those assets.
  2. Organize Documents
    Take the time to find and organize your important documents, such as your Will, Trust, Power of Attorney and Health Care Proxy. Create a comprehensive list of assets and liabilities along with bank, investment and retirement account information. It is also important to create and keep up-to-date a list of any and all accounts you have online together with the password and other access information. This can include email accounts, social media profiles, online banking, and any other platforms where you hold digital assets. Keeping your financial records in order makes it much easier for your loved ones to navigate your affairs in case of an emergency.
  3. Health Care Proxy and MOLST
    Health care decisions are crucial aspects of planning for the future. Share a copy of your health care proxy with your primary care physician and with your named health care agents and make sure they understand your medical preferences. Additionally, consider completing a Medical Order for Life-Sustaining Treatment (MOLST) form with your primary care physician if you have a terminal illness or you are in your mid- to late eighties or older.
  4. Consultation with “Support Team”
    Schedule meetings in the beginning of the year to consult with your “support team”, such as your estate planning attorney, accountant, and financial planner to review your overall financial and legal strategy in the event you become incapacitated or pass away. An attorney can help ensure your estate plan is comprehensive and appropriately reflects your current wishes, while an accountant can provide valuable insight into your tax planning for the upcoming year. A financial planner can assist in aligning your investments with your long-term goals, which becomes more and more crucial after you retire.
  5. Tell Someone!
    Having all those documents organized and in place is only helpful if one or more of your loved ones know they exist. Beyond sharing your health care proxy with your health care agent (and primary care physician), put a copy of it along with the MOLST in an easily accessible, visible location such as on the refrigerator or near your front door. It is absolutely critical that you tell a trusted individual where they can find a copy of your other estate planning documents and the contact information of your support team members so that person knows right away where to go and who to contact in the event of an emergency.

Taking the time to make sure you have a plan in place for the new year by doublechecking you have beneficiaries designated, organizing your documents, sharing your health care proxy, consulting with your support team, and telling a trusted family member or friend about all your efforts is a proactive and responsible approach. By addressing these aspects comprehensively, you will gain peace of mind and also make possible a smoother transition during unforeseen circumstances.

Attorney Abigail V. Poole is a senior associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC which focuses on advising its clients in the areas of estate planning, estate settlement and elder law matters. She is an active member and President of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (NAELA). 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 www.ssbllc.com or call 781/461-1020.

December, 2023
© 2023 Samuel, Sayward & Baler LLC

Five Things Your Estate Plan Allows You to Be Thankful For 

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Estate planning is hard.  Discussing topics like incapacity, death and taxes are unpleasant.  It’s the reason why an estimated two-thirds of Americans do not have an estate plan.  But like many hard things, after it is done there is a sense of accomplishment and relief, and in many cases gratitude.  Estate planning may be something you have been putting off for years, if not decades.  Getting it done is a great feeling, and something that benefits not just you but your loved ones.  Estate planning is an essential aspect of financial well-being and ensuring that your assets and loved ones are protected.  Here are five things to be thankful for when your estate plan is done.

1. Peace of Mind

One of the most significant benefits of estate planning is the peace of mind it provides. Knowing that your affairs are in order and that your loved ones will be taken care of in the event of your passing can be a great source of comfort. For families with minor children, estate planning means you have put in place a plan for your children to be taken care of by someone you choose if you pass away while they are still young.  It also means that you have created a trust so inherited assets can be managed for young children until they are mature enough to take control of those assets themselves.  Estate planning minimizes the potential for family disputes over assets, designates decision-makers of your choice, and makes the difficult process of grieving much more manageable for your heirs.

2. Control Over Your Legacy

Estate planning allows you to have control over your legacy. You get to decide how your assets will be distributed, who will receive them, and under what conditions, and who will oversee that process.  Holding assets in trust for minor children or a beneficiary with special needs is important.  It may also be important for older children for whom asset protection is a concern due to an unstable marriage, a pattern of mismanagement of assets, profligate spending, creditor issues, gambling issues or substance abuse.  This control ensures that your assets are used in a way that aligns with your values and priorities. Whether you want to support your family, friends, favorite charities, or any other cause close to your heart, estate planning allows you to make that happen.

3. Tax Efficiency

Effective estate planning, especially in a state such as Massachusetts with a separate state estate tax, can reduce the tax burden on your estate, leaving more of your assets to your loved ones. By using strategies like trusts, gifts, and other tax-efficient mechanisms, you can maximize the wealth you pass on to the next generation.  If you have a large IRA or other tax-deferred retirement plan, the estate planning process will help you understand how the income tax on these assets will impact you and your heirs.  You will be thankful for the opportunity to minimize the impact of these taxes on your estate and your heirs to ensure that your beneficiaries inherit as much as possible.

4. Smooth Transition of Assets

The estate planning process starts with compiling information about the assets you own, how they are owned, and how beneficiaries are designated.  Creating such an inventory and keeping it up to date will go a long way toward helping the people who are implementing your estate plan carry out their duties efficiently.  Ensuring your assets are owned properly and beneficiaries are designated appropriately and consistent with your plan is an important part of estate planning and will ensure your plan works as intended.  In Massachusetts, where the probate process can take a year or more to complete, the use of Trusts in an estate plan can avoid the probate process and allow for immediate access to assets at death.  This means that your beneficiaries will receive their inheritance more quickly and with far less delay and frustration. The ability to provide a seamless transfer of wealth will give you peace of mind and will be a source of gratitude for your heirs after your death.

5. Your Team

It takes a village, as they say, and estate settlement and trust administration is no exception.  If planning is done properly, an important part of the legacy you leave will be a team of advisors – your estate planning attorney, your accountant and your financial advisor – who will guide and advise your family after your lifetime while ensuring your estate plan is carried out according to your instructions.  Introducing your family to these team members while you are alive can ensure an even more seamless transition.  You will be thankful for the guidance your team provides you during your lifetime and will have peace of mind knowing they will be there to guide your family after your death.

Estate planning offers peace of mind, control over your legacy, tax efficiency, a smooth transition of assets, and a team that will guide you and your loved ones through whatever the future brings.  If you have not already created your estate plan, start the process.  If you have an estate plan in place, make sure it is up to date.  And while you are planning, be thankful for the opportunity estate planning provides to secure your family’s future, provide for charitable causes, and make your passing more manageable for those you leave behind. Your heirs will certainly thank you after you’re gone.

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 2023

© 2023 Samuel, Sayward & Baler LLC

 

Five Ways to Protect your Estate

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When we meet with clients for their estate planning, I ask them about their goals. One of the most frequent answers I hear is that they want to ‘protect their estates.’ Of course, my next question is, from what? There are a variety of risks that estate planning can address when timely and properly undertaken. Read on for five ways to protect your estate from risks that can negatively impact the estate, and legacy, you intend to leave.

1. Protect your assets from long-term care costs.

One of the biggest concerns people have when they are planning their estates is that their assets will be consumed by their long-term care costs. Given the very high cost of such care, whether provided at home or in a long-term care facility, this is a valid concern. While many people think Medicare will cover long-term care costs, it does not. Advance planning to protect assets from spend down on long-term care costs often includes creating and funding an irrevocable trust. Depending on age, health and financial circumstances, purchasing a long-term care insurance policy which provides financial assistance for services like home care, assisted living, or nursing home care is another excellent way to protect a legacy from loss to long-term care costs.

2. Protect the inheritance you leave your beneficiaries

It is essential to thoughtfully decide how your assets will be distributed upon your passing. If you have minor children or beneficiaries with special needs, it is critical that assets not pass directly to these beneficiaries but instead pay into a Trust for them. A person with a disability who is receiving or may be entitled to receive public benefits may lose those benefits if they receive an inheritance.

Under the law, a minor is not legally able to receive assets. As such, if a minor is named as a beneficiary, a court appointed conservator will be required to collect the benefit on behalf of the minor. The conservator will need to manage the assets and report to the court on an annual basis – time consuming and expensive. Once a beneficiary turns age 18, the beneficiary is entitled to receive the asset – often another bad result.

Leaving an inheritance to beneficiaries in trust is often beneficial even if your beneficiaries are non-disabled adults. An inheritance that passes outright to beneficiaries is subject to the easy reach of their creditors such as a divorcing spouse, failed business, lawsuit, etc. Structuring your estate plan to leave the inheritance to your beneficiaries in trust will protect it from the easy reach of those creditors.

3. Protect your estate from avoidable costs and taxes

One key aim of estate planning is to minimize expenses and taxes that can diminish the value of your estate. Estate taxes can significantly reduce the assets you leave behind. Strategies like creating trusts, gifting assets during your lifetime, and making use of tax exemptions can help reduce the impact of estate taxes.

Furthermore, the way your assets are titled and structured can affect administrative costs. Proper titling of assets and careful planning can avoid probate and streamline the estate settlement process, saving both time and money for your beneficiaries.

4. Protect your unique assets

If you possess unique assets like a vacation home, valuable art, or collectibles, it’s crucial to incorporate them into your estate plan. These assets often hold sentimental value and can be a significant part of your legacy. The last thing most people want is to have their heirs fighting over their possessions following their deaths.

To protect and preserve these unique assets, your estate plan should clearly outline how they should be managed or distributed. You might consider creating a family trust to oversee the vacation home’s usage and maintenance, or specifying how your art collection should be appraised and distributed among your heirs.

By planning for these unique assets, you preserve your legacy by ensuring they continue to hold value and significance for your loved ones in the years to come.

5. Protect your privacy

Maintaining privacy is a fundamental aspect of estate planning. When you work with an estate planning attorney, you can establish measures to safeguard your personal and financial information.

One critical tool for privacy protection is the revocable living trust. Assets titled in a trust will avoid probate, a public court process that exposes your estate details to the public record. This means your assets can be distributed privately, without the need for public disclosure.

Additionally, working with professionals who understand the importance of confidentiality ensures that your affairs remain private during the estate settlement process. Protecting your privacy not only shields your financial matters from unnecessary public scrutiny but also preserves your family’s confidentiality during a potentially challenging time.

In conclusion, protecting your estate and preserving your legacy involves a comprehensive estate plan that considers various factors, from minimizing long-term care costs and taxes, safeguarding the inheritance you will leave, and planning for your unique assets. Working with an experienced estate planning attorney will help you tailor a plan that aligns with your specific goals and priorities, ensuring that your legacy is preserved and passed on as intended.

Attorney Suzanne R. Sayward is a partner with the Dedham law firm of Samuel, Sayward & Baler LLC which focuses on advising its clients in the areas of estate planning, estate settlement and elder law matters. She is certified as an Elder Law Attorney by the National Elder Law Foundation, a private organization whose standards for certification are not regulated by the Commonwealth of Massachusetts. 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 our website at www.ssbllc.com or call 781/461-1020.

October, 2023

© 2023 Samuel, Sayward & Baler LLC

 

Community Resources Smart Counsel Webinar from September 14th

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Our latest Smart Counsel Series Webinar took place on Thursday, September 14, 2023, from 6:00p.m. to 7:30 p.m. virtually via Zoom, and was hosted by Attorney Maria Baler who moderated a panel on community resources. Our local cities and towns and regional organizations offer a wealth of programs, resources, and assistance to residents.

These include educational, wellness and social programs, home care services, caregiver support, Medicare counseling, assistance with money management, and providing veterans with assistance to gain access to health care and financial benefits that may be available to them. Many residents are not aware of the availability of these resources until they are in need. This webinar explored these resources in detail. Watch the webinar to learn more about what is available and how they can be accessed.

We were delighted to be joined for this discussion by three individuals who assist local residents every day: Lina Arena-DeRosa, the Director of the Westwood Council on Aging, Sheryl Leary, the Director of Planning and Community Development for HESSCO (the Aging Services Access Point (ASAP) and Area Agency on Aging (AAA) for Southern Norfolk County, and TJ Tedeschi, U.S. Marine Corps (Ret.), the Veteran Service Officer (VSO) for the West Suburban Veterans District which encompasses the Towns of Needham, Wayland, Wellesley, Weston and Westwood.

How is Estate Planning Similar to Gardening?

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It’s that time of year when gardeners are breaking out their trowels and sunhats, and perusing nurseries for plants to create their gardens for the summer.  I love gardening and have spent that last couple of weekends planting seeds and seedlings of tomatoes, peppers, green onions, potatoes, kale, spinach, radishes, cabbage and Swiss chard.  And I still have more to plant!  While digging in the soil, it occurred to me that gardening and estate planning are similar in a few ways.

Last year, I planted several tomato plants on my deck and patio.  Mid-way through the summer, the tomato plants on the deck were decimated by an infestation of spider mites.  By the time I took action, it was too late to help the deck plants but luckily, I was able to save the tomatoes on the patio.  Now I am more knowledgeable and better prepared to stop the pests in their tracks if I encounter the same problem this year.  Creating an estate plan requires the same perspective.  Your estate plan should be rooted in the present based on your finances, family and health, but prepared to address both expected and unexpected circumstances. In short, your estate plan should have a solid foundation and the flexibility to branch in several directions depending on the situation that arises.

I also planted yellow squash and zucchini for the first time last summer.  The zucchini grew spectacularly; the yellow squash did not, despite fertilizer, more water, etc. I plan to plant yellow squash again this year, however, it will be a different variety and in another location with the hope that it will grow better.  Similarly, you should adjust your estate plan regularly through the years.   If you or your loved ones have major changes in health or finances, your estate plan may need to be updated. For example, if you name an adult child as your Personal Representative and she passes away, your Will should be updated to replace her and name a successor.  Additionally, you may want to direct that her inheritance is distributed differently than what is in your current Will.

For years, I have planted basil and marigolds with my tomatoes.  Besides the bright yellow, orange and red marigolds drawing attention to the cherry tomatoes hiding in the green foliage, the flowers also provide protection from several pests that can damage the tomato plants (except spider mites apparently).  Beyond pest control, some plants provide beneficial nutrients to the soil for other plants. Like strategically growing certain types of plants together, it is important to consider the relationships of the individuals you appoint to manage your estate after your death.  I often have clients ask if their adult children can serve together as fiduciaries (Personal Representatives, Trustees, Attorneys-in-Fact) when the real question is should they serve together.  If one of your goals is to preserve a harmonious relationship between your adult children and minimize conflict that could cause estrangement for the rest of their lives, it may be better to name one at a time, depending on your particular circumstances and their dynamics.

These are just a few examples of how estate planning and gardening are similar. At Samuel, Sayward & Baler LLC, our knowledgeable attorneys will meet with you to thoughtfully assist with developing a foundational estate plan or adjusting your estate plan because of changes in your life.  And after meeting, I will return to playing in my garden.

Attorney Abigail V. Poole is a senior 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. She is an active member and current President of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (NAELA).  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. 

May, 2023

© 2023 Samuel, Sayward & Baler LLC

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

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