Posts Categorized: Wills

Why Tax Time is the Perfect Window for Reviewing Your Will

Time for taxes with moneyWhen you’re going through your financial paperwork for the last year and preparing to file your taxes, it’s a good idea to take a look at any other legal documents that you have to ensure that they are written properly and still carry out the wishes that you want.
What Should I Review at Tax Time?
Some examples could include beneficiary designations on life insurance policies and your will. Make sure that the individuals you have named in any official estate planning documents are still willing and available to help.
Life Changes and the Passage of Time Necessitate Review

Things might have changed in your life over the course of the past year and these changes should be reflected in your estate planning documents. For example, one common area that is overlooked after an individual goes through a divorce is updating all of the beneficiary designations and estate planning documents that name your former spouse as an authorized agent. Of course, after a divorce you will want to update these but this is not the only event in your life that warrants a significant change.
Accomplish All Your Review at Once

Getting all of your paperwork out of the way at the same time ensures that you don’t have to think about it for a while and gives you the peace of mind that you know your documents are there to protect you and your needs for the year to come. Set up a consultation with a Massachusetts estate planning attorney to talk more about making these changes to your documents.

When Do I Really Need to Update My Living Will?

Living will In the state of Massachusetts, a living will is a suggested supplement and companion document for your healthcare proxy. While your healthcare proxy is the official document that allows you to name individuals who you wish to help you in the event that you’re unable to make healthcare decisions on your own, your living will is the document that actually outlines what those wishes are, should those agents need to take action.

Use a Living Will for Your Unique Wishes and Needs

Your living will is highly personalized and tailored specifically to your individual needs. Remember that these needs and wishes may change over the course of your life or as your health situation changes. This is why it’s a good idea to set aside time to review your living will annually and to update it as needed. There are several different times that you may wish to update your living will outside of an annual review. These include:

  • When you are preparing for the birth of a child
  • When you have had a major change in your health or a significant diagnosis
  • On milestone birthdays ending in a five or a zero
  • If you can’t remember what your living will outlines
  • When a family member has recently gone through a health crisis and you want to ensure that your own documents help prepare for situations that may have happened
  • Before you go to surgery
  • After hearing a media story about where not having a living will impacted an individual and you want to make sure that a similar challenge won’t make life difficult for your family.

It’s never a good idea to attempt to write a living will on your own. It is strongly recommended that you consult with a Massachusetts estate planning attorney to be sure that all of your needs are addressed properly. Do not hesitate to get help as soon as possible in this situation.

Why Tax Time is the Perfect Window for Reviewing Your Will

When you’re going through your financial paperwork for the last year and preparing to file your taxes, it’s a good idea to take a look at any other legal documents that you have to ensure that they are written properly and still carry out the wishes that you want.

What Should I Review at Tax Time?

Some examples could include beneficiary designations on life insurance policies and your will. Make sure that the individuals you have named in any official estate planning documents are still willing and available to help.

Life Changes and the Passage of Time Necessitate Review

Things might have changed in your life over the course of the past year and these changes should be reflected in your estate planning documents. For example, one common area that is overlooked after an individual goes through a divorce is updating all of the beneficiary designations and estate planning documents that name your former spouse as an authorized agent. Of course, after a divorce you will want to update these but this is not the only event in your life that warrants a significant change.

Accomplish All Your Review at Once

Getting all of your paperwork out of the way at the same time ensures that you don’t have to think about it for a while and gives you the peace of mind that you know your documents are there to protect you and your needs for the year to come. Set up a consultation with a Massachusetts estate planning attorney to talk more about making these changes to your documents.

What Happens to Stocks After the Death of the Owner?

Business Stock Exchange Trading ConceptsAcross the United States, stock ownership is extremely common and this is why the question about what happens to stock ownership transfer when the holder passes away is of great importance to many individuals.

There are numerous variables that impact this, but the most important one has to do with whether or not the stocks are jointly owned. Since Massachusetts is not a community property state, you need to walk through your planning options with an attorney to make sure all of your assets and accounts are organized properly.

Typically, any jointly owned equities  pass to the survivor, although laws of different states can differ especially when it comes to what is classified as separate property. One of the most common methods for passing stock along is to use a registration referred to as ‘transfer on death.’.This means that a named beneficiary can take ownership of the stocks while avoiding the probate process.

Bear in mind that not all states allow for transfer on death registration for stocks, meaning that the probate process could still be required when the inheritance comes through a will or intestacy. If you are thinking about planning ahead for your own future, you will carefully want to consider all assets and how you want them included in your planning.

Meeting with a Masschusetts estate planning attorney can be extremely helpful if you intend to outline the distribution of assets that you wish to exclude from probate. Using tools like trust, for example, can help ensure that you maintain control over the distribution of assets without having concerns associated with your beneficiaries having to go through the probate process. You can talk over your options with an estate planning attorney about how jointly owned property will be treated when you pass away.

An estate planning attorney can also help you walk through all of the different assets in your estate to ensure that you have provided for the appropriate planning for each of them. Taking a comprehensive look at your estate planning is always beneficial.

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.

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.

Lessons Learned From A Multi-Millionaire Janitor

We don’t often hear about the passing of unassuming, elderly janitors… but when they leave secret multi-million dollar fortunes behind, that tends to get newspapers’ attention.Man mopping factory floor

Ronald Read lived in Vermont his whole life. He worked as a soldier, then a gas station attendant, and then a J.C. Penny janitor. He was well liked but lived a simple life, reportedly working right up until his death last June at the age of 92.

Upon his death, his friends and family were shocked to learn that he’d acquired nearly $8 million in stock holdings and assets over his life — and he left almost all of it to charity.

In reflecting on Read’s incredible story, The Washington Post says there are both lessons to learn and mistakes to avoid. Let’s look at a few items from each of their lists.

What Read Did Right, According to The Washington Post

  • Patience. Read held a lot in stocks, but he rarely traded. He owned most of them for many decades.
  • Dividends. “Read was not an active trader,” the Post says, but “he was an active buyer. There is a very big difference.” Read preferred stocks that paid regular dividends. He then used those dividend checks to buy more shares of the same companies.
  • Diversity. Read owned many different kinds of stocks, but he avoided technology and anything trendy.
  • Philanthropy. By designating charitable beneficiaries for his assets, Read was able to significantly reduce his estate’s tax burden. (In fact, in his case, the whole fortune passed tax free).
  • Revocable trusts work well. Read had one, and it made life much easier for his beneficiaries.

What Read Did Wrong (By Post Standards)

In praising his financial prudence, the Post is quick to question whether Read really made the most of his life. Friends and family say he did not enjoy his retirement. They wonder whether he might have been happier had he loosened the purse strings and “lived a little,” so to speak. Maybe.

Of course, most of us are driven to do that which we enjoy most. Who’s to say that Read didn’t lead exactly the life he found most fulfilling?

Whatever we might make of his frugal ways, the Post is absolutely right about one thing — we can all learn a lot of lessons here. Financial responsibility pays off. So does planning. Life is short. And above all else, never judge a book by its cover.

Lights… Cameras… Estate Plans? When Wills Hit the Big Screen

From Philip Seymour Hoffman and Heath Ledger to Frank Sinatra and Elizabeth Taylor, Hollywood’s dearly departed have taught us a lot about estate planning over the years.

Forbes put together a list of those lessons last year, demonstrating how creative and chaotic estate planning can be in the spotlight of fortune and fame. That had me thinking — it isn’t only the stars themselves who impart insight on the prudence of planning. Sometimes their movies do too.

Here’s a look back at a few of the greatest movies to put estate planning front and center (or at least in the middle of a juicy plot twist):

Cover of "The Aristocats (Special Edition...

Cover of The Aristocats (Special Edition)

  • The Aristocats (1970) — When you think about complex legal concepts, Disney animated features aren’t the first things that spring to mind. Nevertheless, The Aristocats offers a textbook illustration of the classic “life estate with remainder in fee simple absolute” — in other words, an elderly widow who leaves her entire estate to her cats, with the remainder to pass to her butler after the cats die. Unfortunately, the criminally inclined butler isn’t eager to wait that long…
  • The Descendants (2011) — George Clooney plays an attorney and the sole trustee for a massive family trust containing 25,000 acres of beautiful Hawaiian land. A series of accidents and unfortunate timing force his enormous family to wade through the murky waters of wills & trusts. Most interestingly, the whole plot revolves around “The Rule Against Perpetuities” (a pesky legal rule that limits some people’s future interest in property if too much time passes before the interest vests). Notably, both Hawaii and Massachusetts have adopted the same uniform version of “The Rule Against Perpetuities.”
  • The Grand Budapest Hotel (2014) — Nominated for Best Picture at this year’s Academy Awards, Hotel’s haywire plot is anchored in a controversial bequest. When an older woman dies, she leaves a very valuable painting to her much, much younger lover. Naturally, her ne’er-do-well children are less than thrilled. They challenge the validity of her will, and while that proceeding plays out with a little more madcap action than most of the real-life cases I’ve seen, it’s a great showcase for how easily miscommunication and strife can muddle an estate plan.

In Hollywood as in real life, estate planning is a potential breeding ground for epic drama — no wonder it’s a favorite topic in the screenwriting world! Of course, most of the movies’ great estate capers could have been avoided with careful planning.

What did I miss? If you have any favorite films with a focus on estate planning, please feel free to share them. And should any of these cinematic classics spark a question about your own estate plan, don’t hesitate to give me a call.

Preparing to Die: Why the Will Is Just the Beginning

“Prepare to die” sounds like something a super-villain says to a caped hero in a Hollywood blockbuster. Certainly, it’s not a phrase any of us want to hear today.

But all of us will pass away someday, and when we do, we’ll leave people we love behind. They’ll have a lot to take care of when that happens. Attending to an estate is a difficult thing to ask of a family when they’re grieving, but it’s something that must be done.

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“Preparing for death” in the legal sense, then, isn’t nearly as sinister as it sounds. In fact — contrary to the inflection with which The Joker might say it to Batman, for example — it really is an act of compassion and care for those who’ll inherit a substantial burden after we leave.

The New York Times recently ran an article about the surprising number of tasks that must be dealt with in today’s estate plans. It’s so much more than just a will these days. Trusts, health care directives, burial instructions, powers of attorney, lists of online account passwords… the list goes on and on.

As a Winchester estate planning attorney, I think one of the ways I can be most helpful to my clients is staying up to date on all the changes and trends in end-of-life preparations.

The law in this area changes all the time, and as technology and society evolve, our estate documents must also change to reflect those developments. Otherwise, we risk ineffective or unintended results.

“Preparing to die” is an understandably uncomfortable thing. I’m here to take care of those things for my clients so they can focus on living their lives instead. If you need help or advice with your will or any other estate documents, please feel free to call my office today. We can talk about what you might need to bring your future plans up to date.

Why You Should Keep Your Will Up to Date

Your life isn’t stagnant. Why should your will be? After all, a Last Will and Testament is really a reflection of the life you lead — the things you own, the people love you, and the place you call home. But a life well lived is a life of change.

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How long has it been since you last executed or updated your will? Five years? Fifteen? More? How different does your world look today than it did back then?

Some of the top reasons for updating a will in Massachusetts include:

  • Changes in family — Have some of your beneficiaries passed away? Are there new children, grandchildren, or spouses in the picture? Little kids who’ve since grown into full adults? Maybe you’d like to add new nieces, nephews, or in-laws. Or modify your choices for Personal Representative?
  • Changes in assets — Some assets are best addressed with specificity, including many bank accounts, insurance policies, benefit packages, pension plans, and corporate assets. Internet passwords and other modern-day IT considerations are important too. If your estate is significantly bigger, smaller, or otherwise different today, it’s probably time for an updated will.

Even without major changes in your life, it’s a good idea to check in on your estate plan every few years just to make sure there aren’t any gaps. (And remember to always meet with a local lawyer any time you move to a different state!)

Modifying an estate plan is easy with professional guidance. If you’re in Massachusetts and would like to give your Last Will and Testament a second glance, feel free to give me a call.