There are five major problems that can arise as a result or no, or poor, estate planning. Here’s what you want your family to avoid: 1. Living Probate. If you become disabled, the probate court will decide how your estate is to be managed so your medical and nursing home care bills can be paid. …
Estate Planning Blog
The Outcomes of Poor Planning
Definition: Probate
Probate is a legal process that pays debts owed by your estate and applicable death taxes, and distributes the remainder of your estate to your designated beneficiaries. There are two kinds of probate: Living Probate and Death Probate. Living Probate occurs if you become disabled and have not established a Living Trust to hold title …
Benefits of a Living Trust: Part 2
5. Avoids Estate Taxes The federal government allows your beneficiaries to receive up to $5,340,000 (indexed for inflation) without paying death taxes. In Massachusetts, if you die with $1,000,000 or less, your family will usually be exempt from death tax (although there are exceptions). But with a properly planned Living Trust, a married couple can …
Benefits of a Living Trust: Part 1
1. Eliminates Living Probate A Living Trust helps your family avoid court expenses and time-consuming procedures if you become mentally or physically incapable of managing your assets. The successor trustee you have chosen in advance will manage all of your affairs to your written specifications. 2. Protects Assets if You are Disabled Getting quality nursing …
Definition: Living Trust
A Revocable Living Trust is the most reliable and thorough foundation for an estate planning portfolio, and provides the most complete financial protection for you and your family. It holds title to all of your major assets. As Trustee and Beneficiary, you have total control to make decisions regarding your assets (property, investments, cash, etc.) …
Definition: A Last Will and Testament
Contrary to what you see in the movies, A last will and testament does not have the final say on how your assets will be distributed after death. Some assets are even out of the estate before the will is triggered. If you have only a last will and testament, the only thing you can …
Definition: Joint Tenancy
Joint Tenancy refers to ownership of property by two of more people. This protects property from probate as deceased’s portion of ownership passes to other joint tenant(s). You might think that a will would override joint tenancy laws. Not so. Since the transfer of a jointly held asset essentially occurs automatically upon death, it’s out …
What is an Estate Plan?
By David E. RosenYour “estate plan” is a legally binding plan that defines how your wealth will be managed if you need to be cared for in sickness, plus how your wealth will be distributed after your death. The estate plan also serves to preserve the values that matter most to you, so that after your incapacitation or …
Understanding Your Estate
By David E. RosenWhat is Considered Part of Your Estate? Your “estate” includes every asset you own or in which you hold an interest, including real property, investments, business interests, insurance proceeds, personal property, and possessions. If you jointly own an asset with another party, your share is considered part of your estate. For example, married couples often …
Understanding the Importance of Estate Planning
By David E. RosenPeople generally don’t give much thought to their own deaths while they are alive. But when it comes down to the inevitable, not planning properly for estate management and distribution can place a tremendous strain on a grieving family due to money lost to avoidable taxes, excessive legal fees, demands on their time, and stress. …