Estate Planning

Your Will is a fundamental estate planning document. It states the persons and/or entities that will inherit your probate assets upon your death. It also nominates one or more persons to serve as your Executor (now called a Personal Representative in Massachusetts).Read More »

Durable Powers of Attorney nominate someone to make financial decisions on your behalf if you are unable to do so yourself. Health Care Proxies operate the same way for medical decisions. These solutions are arguably more important than Wills and Trusts, because they protect you while you are still alive. Without these documents in place, someone will have to petition the Probate Court for a Guardianship or Conservatorship over you, which is traumatic for a family.Read More »

Due to the astronomical costs, nursing home residents invariably end up on Medicaid (called MassHealth in Massachusetts). Medicaid eligibility requires a spend down of almost all of your liquid assets, and then results in a lien being placed on your house. With a Medicaid Trust (also called an Irrevocable Income Only Trust), you can protect your home, and pass it on to your family when you die.Read More »

While almost all trusts have some asset protection features for third-party beneficiaries, some jurisdictions now allow a Settlor (trust creator) to establish a Self-Settled Spendthrift Trust. This type of trust allows a person to retain access to their assets, while preventing a creditor from reaching them.Read More »

When someone dies, the total value of their assets is their taxable estate, and this includes the death benefit of a life insurance policy. For many, this death benefit pushes them over the threshold so that they have to pay an estate tax. Estate tax rates are on a sliding scale, and are very costly. An Irrevocable Life Insurance Trust (ILIT) removes the death benefit from your taxable estate, and ensures that it goes to your beneficiaries, instead of the taxing authorities.Read More »

Through creative Marital Trust planning, we can essentially double the amount of wealth that spouses can pass tax free at their deaths. For families with over $1 million of net worth (including life insurance death benefits), this technique is immensely valuable.Read More »

Think of a Revocable Trust as a Will substitute. Like a Will, it states who will receive your property upon your death. But where a Will is limited to who receives what property, a Revocable Trust can specify where, when, how, and why your beneficiaries receive their inheritance. This flexibility allows you to protect your next of kin from themselves and others, and it avoids costly Probate Court proceedings.Read More »

Many wealthy families seek to reduce their estate tax liability by gifting assets to the next generation during their lifetimes. Less wealthy families do the same for non-tax reasons. Either way, a Gift Trust is a vehicle for making lifetime gifts to your beneficiaries, while simultaneously providing asset protection and gift tax avoidance.Read More »

When a child with special needs reaches age eighteen, they may qualify for public assistance in the form of Supplemental Security Income (SSI) or Medicaid (MassHealth). However, parents and family members often wish to leave money to special needs persons. Unfortunately, these gifts can result in the individual losing their eligibility for public benefits. A Special Needs Trust (also known as a Supplemental Needs Trust) is a vehicle for providing for such an individual, while preserving their eligibility for public assistance.Read More »

There is no limit to the types of trusts that people can create. Some rare but powerful trusts include: Grantor Retained Annuity Trusts (GRATs), Charitable Remainder Trusts (CRTs), Offshore Trusts, Testamentary Trusts, and Intentionally Defective Grantor Trusts (IDGTs). If you are interested in any of these trusts, or others, we would love to hear from you.Read More »