Posts Categorized: Estate Planning

This New Year, Resolve to Estate Plan

ThinkstockPhotos-502050910New Year’s resolutions always seem to be the same — eat less, run more, get better sleep, etc. Sadly, breaking those resolutions has become as traditional as making them in the first place!

Forbes reports that only 8% of Americans manage to maintain their resolutions for the full year. Most of us ditch them in just a few weeks! Maybe we’re aiming too high.

Here’s an idea for an easier-to-keep resolution… one that’ll pay real dividends in the future. Plan your estate!

As I’ve written about in the past, the majority of Americans agree that they need an estate plan; they just prefer to procrastinate as long as possible. Procrastination is a very anti-New Year’s state of mind, though, so I think this month represents a golden opportunity to finally cross estate planning off your eternal to-do list!

Here’s an easy-to-follow plan:

  • If you don’t have any kind of an estate plan, call my office today and let’s have a friendly chat. It’s that simple. I can handle all the hard work for you.
  • If you already have an estate plan but haven’t updated it in the last few years, seize the opportunity to do so now. Estate plans are never truly finalized — you need to incorporate all the latest changes in your family, as well as recent evolutions in technology and the law.
  • If you have all the basic documents in place and they’re fairly up to date, set your sights on long-term care planning. That might be the best thing you ever do for your family. Americans are living longer, and more of us than ever will require long-term care. Unfortunately, it’s very expensive. Advance planning empowers you to provide for your future with a manageable and affordable approach in the meantime.

Let’s make 2016 your “I finally did it” year. My office can help with any of these resolutions and plenty of others, so let’s make the most of January while it’s still here. Give me a call today.

Three Youthful Myths About Estate Planning for Millennials

Funny day with the best friendsBlitheness is the prerogative of the young. Arguably, no generation has better exercised its right to youthful nonchalance than the Millennial one, known for its “Peter Pan” reluctance to embrace the burdens of adulthood.

Then again, maybe that isn’t fair. Millennials might think about growing up in different terms than those who came before them, but they are also coming of age in a different world than the one we grew up in.

And who’s to say they aren’t responsible? The New York Times recently reported that more and more young people — even without a family of their own — are beginning to make estate plans. That’s something those of us who practice estate law have been recommending to young Americans for a long time, but the message has often fallen on deaf ears. It’s nice to see that changing.

The Times report notwithstanding, though, there may still be a pervasive sentiment among Millennials that estate planning is a concern for their far-off futures.

Financial e-magazine The Street recently argued on behalf of estate planning for Millennials, and we might match the points they made to three common myths among the young:

1. Young people don’t own anything of value. That is surely a myth. Most Millennials do indeed have estates of their own. While they might not own homes, their possessions can still add up to a lot, not only in terms of financial worth but also sentimental value. That needs to be accounted for.

2. Estate planning is for rich people. This myth is popular among people of all ages, but it is equally untrue for all of them. Everyone has assets. You don’t have to be wealthy to own things that matter. Moreover, even in the absence of high-dollar assets, you still have a body. Healthcare directives, powers of attorney, and other documents are all essential for making sure that someone will make the right decisions for your health and welfare if you’re ever unable to.

3. There’s still time to do it later. That’s an easy assumption to make, especially while you’re young, but the truth is that none of us have that guarantee. Unexpected accidents, illnesses, and deaths have left many families in terrible binds. Young people can alleviate enormous burdens for their loved ones by putting an effective estate plan in place now.

If you’re a young person (or the parent of one), and you’d like to learn more about estate planning for Millennials, I can help. Give me a call.

Married with No Estate Plan But Too Busy to Make One?

Signing DocumentsFact: 64% of Americans do not have a will.

Fact: 1/3 of America’s married couples are without life insurance.

Fact: Even among those couples that do have life insurance, 43% still say they would be in financial trouble if one of the spouses passed away.

This month, NerdWallet and USA Today are teaming up with tips for married couples who need to get some sort of plan together but can’t seem to find the time to actually do it. (Sound familiar?) Let’s look at a few of those tips below:

  • Figure out how much life insurance you actually need. In most families, at least one spouse should carry coverage. If your employer offers a policy, that’s a start, but don’t assume it’s all the protection you will need. It almost never is. Research is the hard part, but a professional can help with guidance. The actual application can be done in an afternoon.
  • Make a “financial safety box.” Put all your important documents, records, and other such information in a single location. Then make sure that everyone in your family knows where it is. In the event of an emergency or a sudden death someday, a frantic scramble to find essential information is a hassle that no one wants to deal with, and it can cause big problems. USA Today suggests making a “one-page, quick-start guide” that lists your bank accounts, insurance policies, and other important information. Put that page on top of the stack and update it often.
  • Have a conversation. Do you know what your spouse wants for his or her burial? And where should his or her personal assets go? Assumptions about the answers to these questions are one of the leading problems in estate planning. Don’t assume. Communicate about it instead. (Isn’t that the answer to just about every relationship challenge?)
  • Let Noreen handle it. Okay, they don’t put it quite that way in their article, but that is one of NerdWallet’s essential recommendations — let an experienced professional do the heavy lifting. As a Middlesex County estate planning lawyer, I’ve helped many couples put together wills, trusts, and other essential documents to protect their families for the future. I can do the same for you. I want you to be involved, but I also want to respect your time. I know that life is busy, and that’s why I’m here to shoulder the stress.

If you and your spouse know you need a plan in place but just can’t find the time, I understand. Give me a call and we’ll have a quick chat about how my office can make a difference. Let’s talk.

How End-of-Life Discussions Can Save Your Life

Couple meeting with doctorAmy Berman is a nurse and a nationally recognized expert in senior care. She’s also a cancer patient with Stage 4 inflammatory breast cancer. In a recent Washington Post editorial, she explains that advance planning and end-of-life discussions have saved her life, even as she faces a terminal prognosis.

For Berman, that began with a decision to focus on palliative care. In other words, she and her doctors are more interested in making the rest of her life as enjoyable and painless as possible, as opposed to employing extreme treatment options that may or may not make any difference but that would almost certainly leave her feeling less than her best.

As Berman puts it, it’s about her quality of life, not quantity of days.

Palliative care isn’t always the right focus. It’s a personal choice and a highly diagnosis-dependent one. But Berman says you need to have an honest conversation with open-minded doctors (and get second opinions) to make sure you’re embarking on the best course.

But advance planning doesn’t stop in the doctor’s office. There’s a lot you can do on the legal side of things, too.

“High-quality advance-care planning discussions help people like me understand their options and make their wishes known,” Berman writes. “They can identify a surrogate to make decisions when they are unable to, and they can document their preferences in their medical records. These discussions — which should be ongoing, not just one-time — can revisit decisions in the face of new challenges…”

Wills, trusts, healthcare directives, and power of attorney are documents that all Americans should have in place, not just those living with end-stage cancer or other terminal diagnoses.

If you’d like help preparing for your own future, my Middlesex County estate planning attorney services can help. It’s never too early to talk about how you’ll handle those final chapters in life — in fact, it’s even better to have that conversation when “the end” is still a long way away! Give me a call today.

When Family Matters Are Messy, an Attorney Can Help

Rich elderly man with gold-digger companion or wifeFamily issues can be so tricky. The Chicago Tribune recently ran a story about an elderly father with a much younger girlfriend. He’s handed over a large portion of his assets to his new love, much to the chagrin of his now-grown children.

They say the girlfriend is out for their dad’s money. She says she’s his caregiver and they’re very much in love. The father agrees with her, and it’s his money. But is he of sound mind? So far, a doctor hasn’t said anything to the contrary, but the adult children believe that just such a declaration isn’t too far off in the future.

Meanwhile, an impartial observer looks at the whole situation and simply shrugs. Who’s to say who’s in the right here?

As a Massachusetts estate planning attorney, part of my job is to walk my clients through thorny family issues like the one contemplated in the Tribune. The issue of who’s “right” matters in some cases more than others. Often, there is a practical path to be found, one that leads to a better outcome than emotionally entangled relatives might be able to reach on their own.

Advance planning and honest communication are both key to the whole process. With respect to the latter, part of my job as the estate planning attorney is to make sure that you, the client, have a clear understanding of whose interests I represent (i.e. yours).

Maybe what’s best for you isn’t what’s best for your children or your significant other. The nice thing about a private meeting in our office is that we can consider those kinds of questions coolly, calmly, intelligently, and confidentially. I can answer all your questions and help you reach a decision that is ultimately yours to make — and yours alone.

If that sounds like a conversation you’re ready to have, give me a call. I’d love to help.

Proactive vs. Reactive Estate Planning

As Walt Disney once said, “The way to get started is to quit talking and begin doing.” If only everyone applied that philosophy to estate planning.

I recently came across an editorial out of Pittsburgh, weighing the benefits of proactive estate planning vs. reactive estate planning.

Proactive estate planning is what it sounds like — making plans before you need them. The proactive crowd is keen on foresight. They know they’ll need estate plans someday, so they get all their ducks in a row now, while everything is going well. No one’s sick, no one’s in the hospital, no one’s in the last chapters of their lives — but should disability, illness, injury, or unexpected death rear its ugly head tomorrow, they’ll be prepared.

The reactive camp isn’t so big on preparation. Oh, sure, they end up with estate plans eventually — but only when they’re running a race with deadlines and hoping they stay a little ahead of “too late.” Reactive types don’t give estate planning a second thought until someone’s health has taken a turn for the worst, or maybe when someone dies without warning. To quote the article, these are people “in crisis.”

The Pittsburgh Post-Gazette editorialists sum it up like this: “While there are almost always options available at the eleventh hour (often limited because of timing), obviously advance planning will save time, money and stress.”

Advance planning also leads to better decision-making. Crisis situations limit options and tie hands. Rash choices are made. But when you come into my office and sit down for a conversation during “a time of peace,” if you will, cooler heads can prevail. We can take a long look into the far-off future and account for every contingency so that you aren’t terribly blindsided someday.

No one has ever regretted being proactive in their estate planning. The reactive folks, though? They know a thing or two about hindsight.

Blended Families Have Unique Estate Planning Needs

There is no such thing as one-size-fits-all estate planning, and that’s especially true when it comes to blended families in Massachusetts.

When you think about it, even “nuclear families” (a husband and wife who’ve never been married before and maybe have a couple of kids together) have their work cut out for them when creating estate plans. Most families have amassed their fair share of assets — even if it’s just a trove of trinkets with little more than sentimental value. Fairly providing for everybody in the family takes times and consideration.

Add divorce, second marriages, stepparents, and step kids to the mix? Then things really get complicated.

I recently came across a helpful article on this subject in Gannett’s The Spectrum, an online news magazine. It focuses on the single biggest estate-planning dilemma that any member of a blended family faces: balancing the many competing interests in a network of “exes” and “steps” who might not see eye to eye.

“Your challenge,” Spectrum tells blended families, “is to divide your assets among your heirs according to your wishes, while minimizing both estate tax and animosity among family members.” Easier said than done! With the right strategies in place, though, it can be accomplished.

In “nuclear” or “original” marriages, there is a temptation among spouses to simply leave everything to each other. That isn’t an ideal approach for anyone, but it’s especially problematic in the blended context.

Consider, for example, someone who had kids in her first marriage and then remarried and had additional children in the second marriage. Leaving everything to the new spouse might more or less take care of that second family (though not without some potential problems), but what about the children from the first marriage?

Of course, that’s just one example of the “blenders’ burden.” Families are complicated and so are the laws of inheritance. There is a lot to consider, so it’s generally not a good idea to try to square everything away on your own.
If you’re in a blended family, it might be time to update your estate plan to account for the latest changes in your life. If you’d like some experienced counsel and advice along the way, I’d be happy to help. Just give me a call.

CNBC Is Shocked You Don’t Have an Estate Plan

Some headlines get right to the point.

“No estate plan? Wow, BIG Mistake.”

That was the original headline in this CNBC article about the shocking lack of estate planning among average Americans. It’s a frank title, but not an altogether unjustified one. Such widespread indifference toward estate planning is a little surprising — and certainly unwise.

“We’re all guilty of not doing what… doesn’t seem urgent,” the article says, “but there’s no excuse for not having a current estate plan—which will matter a great deal if you suddenly become terminally ill or incapacitated or die.”

Just how bad will it be? CNBS answers that rhetorical question with, well, candor:

“You’ll lose control over who gets your property and how it might be used; who cares for your minor children and how; and your own care, should you become incapacitated. The courts will also likely need to step in, at a potentially heavy cost—both financial and emotional—to those left to pick up the pieces.”

Simply put, it’s important (verging on downright necessary). Not having one is unwise, and the temporary hassle of creating a plan is vastly outweighed by the benefits and peace of mind you’ll have when all is said and done. Besides, an experienced Middlesex County estate planning attorney can largely eliminate that hassle for you.
That’s CNBC’s other big piece of advice: “Every family and financial situation is unique, so you should choose an estate-planning attorney who is not only knowledgeable in the laws of your state that govern probate, wills and trusts but also one in which you feel comfortable sharing your most personal details.”

For many years now, I’ve been helping clients of all ages prepare for their futures. My office is here to serve clients from anywhere in Massachusetts, including Arlington, Winchester, Lexington, Medford, Woburn, Burlington, Somerville, and all of Middlesex County.

If you’re ready to remedy CNBC’s jaw drop and create an estate plan of your own, I hope you’ll contact me for an initial consultation. I very much look forward to meeting you in person.

For Some Families, Estate Planning Is People Planning

Some of the best sitcom episodes are those in which the protagonist family goes on vacation. Invariably, they mess up. Tickets are left, bags are lost, plans derail, and tempers fly off the handle.

That’s how it goes, isn’t it? Nobody’s family is fully functional 100% of the time, and life’s “big events” only seem to turn up the pressure.

Along those same lines, there’s a new editorial in Forbes, arguing that people are the most important ingredients in your estate plan — and the author isn’t talking about beneficiaries. Instead, it’s the people you leave in charge who might make a mess.

“Estate planning is less about having the proper paperwork in place and more about managing the people in your life,” writes Charles Sizemore, a chief investment officer who decided to give all his documents to his own estate planning attorney for safekeeping.

“The fact is,” he says, “you can do all the ‘correct’ paperwork and have an airtight will and testament in place, but it won’t matter if your spouse or heirs can’t remember where it is or what to do with it.”

That’s a bigger problem for some families than others. Which kind is yours? The vacation comparison is a useful indicator. Are you a smooth-sailing clan? Or is the Home Alone airport frenzy an annual reenactment for you?

If your immediate loved ones aren’t always the most organized or cool-headed in trying times, you might want to look for a more suitable party to serve as your personal representative or even as a “documents keeper.” Then, as Sizemore suggests, give everybody else in the family that person’s business card.

Who should you pick? There’s no right answer. It doesn’t have to be a family member, nor does it have to be your estate planning attorney. In the right circumstances, I can provide that service for some of my clients, but I also help people strategically select other third parties who happen to make sense in their situations. Give me a call and we can talk about the right choice for yours.

Elderly Entrepreneurs: Small Business & Old Age Go Hand in Hand

We sometimes tend to think of upstarts and entrepreneurialism as a young person’s game. Not so! The truth is that American businesses span the whole age spectrum, and the aging-and-elderly populations make up a bigger portion than you might think.

The U.S. Census Bureau recently released its Business Dynamic Statistics from 2014, and the results are surprising:

  • 16% of small business owners are under the age of 35
  • 33% are ages 35-49
  • 51% are ages 50-88!

Additionally, the Census found that the average age of a first-time business founder is 39. Similarly, the report shows that most of America’s small businesses have already been around for decades, and their owners are much older now.

That tells us a few things. For one, as I often mention, so-called “old age” isn’t always the slow-paced lifestyle it’s made out to be. It isn’t uncommon for someone in their sixties, seventies, or even eighties to be involved in the day-to-day operations of the business world.

The study also demonstrates that a great many Americans need to consider their small businesses as part of an estate plan. Someone will need to take over those businesses — or at the very least, manage their affairs — in the event of unexpected death. Practically speaking, that requires a lot more than simply transferring ownership interest to somebody else in a will.

If you own a business in Massachusetts and aren’t sure whether your existing estate plan adequately safeguards your company against worst-case scenarios, I’d be happy to talk with you about options for shoring up those plans.

Small businesses and old age go hand in hand. Together, we can make sure yours will stay in good hands too.