There always seems to be an excuse why we cannot sit down, organize our priorities, settle on the right set of fiduciaries and get our estate plans in order.\u00a0 What most people do not seem to realize, however, is that permitting the state to use its formulae to settle your affairs after your death in almost all circumstances does not produce a result that you would have wanted.\u00a0 More than that, it can cause heartache and pain to those you leave behind, and family disputes that many times cannot be smoothed over, even over time.<\/p>\n
There follows a working outline of manageable steps which you can take to prepare to sit down with an estate planning attorney.\u00a0 If you have a good idea of the answers to these questions, the actual drafting of your will and constituent documents can be relatively painless and completed within a reasonable time at a reasonable cost.<\/p>\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1. Determine whom you need to protect and provide for.<\/p>\n
For married couples with children, this generally flows naturally.\u00a0 Your surviving spouse is your key beneficiary with children being taken care of should you both perish in a common accident.\u00a0 But even with these basic tenets agreed upon, there are some ancillary decisions which need to be addressed.<\/p>\n
In Massachusetts, 18 years of age is majority. If you and your spouse die and leave children, those children will be entitled to any assets you leave them at age 18.\u00a0 Is 18 the age you want your child to have unbridled use of hundreds of thousand, or even millions, of dollars?\u00a0 Most of the time the answer to this question is “no” although many of us have life insurance policies, or pension or profit sharing plans which provide for proceeds to pass to a spouse, or alternatively, children. The way to protect your children from themselves is to create a Trust mechanism, either in your will or by way of revocable trust, which will permit your children to have use of these assets but not be able to spend them without any controls.\u00a0 Only by getting your estate plan drafted and making proper beneficiary designations can you be sure that these objectives can be met.<\/p>\n
For unmarried couples, the perils of not having wills are serious.\u00a0 Massachusetts intestacy laws make no provision for people who are not spouses, children, parents, siblings or blood relatives.\u00a0 Whatever your intentions are regarding your partner, it behooves you to make them clear through a will or revocable trust.<\/p>\n
Further, when you are not married to your partner, issues such as health care decisions will not flow to your partner without specific designation of the person in a health care proxy or HIPPA designation.\u00a0 Many are the situation where the person you really want deciding important health issues for you is shunted aside in favor of family members who really are not aware of your wishes and are only involved because of blood relationship.<\/p>\n
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There are generally four (4) different roles which need to be addressed.\u00a0 Many times the same people can act in more than one capacity, but often there is a benefit in spreading the roles out over several people.<\/p>\n
\u2022(a)\u00a0\u00a0\u00a0\u00a0 Executor:\u00a0 This person needs to be honest and organized.\u00a0 Choose someone who can take charge of your affairs, select appropriate professionals to act on behalf of the estate, and move on.\u00a0 Generally, about 18 months time is needed to complete the Executor’s tasks.<\/p>\n
\u2022(b)\u00a0\u00a0\u00a0 Guardian:\u00a0 Surviving spouse will automatically take over as your children’s guardian.\u00a0 With simultaneous death of spouses, care must be taken to designate someone who can shepherd your children through the years of minority.\u00a0 Be careful about selecting your parents.\u00a0 While they may be the natural choice, the burden of raising small children may be too much for them.\u00a0 Siblings with children are normally the best guardians, although care has to be taken when a larger than manageable family is created with the addition of your children.<\/p>\n
\u2022(c)\u00a0\u00a0\u00a0\u00a0 Trustee:\u00a0 This is normally a long term person, so age considerations are important.\u00a0 If you will want a Trust to exist until your youngest child is 35, you should think about someone who is likely to be around through the period in question.\u00a0 Again, honesty and good judgment are traits which make a good Trustee.\u00a0 You do not need an accountant, attorney or investments advisor for a Trustee.\u00a0 You just need someone who can find suitable professionals to serve the Trust.<\/p>\n
\u2022(d)\u00a0\u00a0\u00a0 Health Care Agent: This is the person you name in your health care proxy to make medical decisions for you when you are unable.\u00a0 Your spouse or partner is a natural choice.\u00a0 Often it makes sense to make alternative selections should the person you wish to use be unavailable.<\/p>\n
Armed with answers to the questions and issues described above, you are in a very good position to move forward with your estate plan.\u00a0 At Topkins & Bevans, we try to make the process efficient and manageable.\u00a0 Appointments to discuss estate plans are entirely free of charge, and it is only after we have agreed on a document program, that we will discuss a fee arrangement with you.<\/p>\n","protected":false},"excerpt":{"rendered":"
There always seems to be an excuse why we cannot sit down, organize our priorities, settle on the right set of fiduciaries and get our estate plans in order.\u00a0 What most people do not seem to realize, however, is that permitting the state to use its formulae to settle your affairs after your death in … Continue reading Where There’s No Will, There’s No Way<\/span>