Estate Planning

Estate planning is the process of actively controlling your life when the unforeseen occurs. With a comprehensive estate plan, you can nominate a representative to see that your desires are carried out upon your death; you can nominate a representative to handle your financial affairs and medical needs when you are unable to yourself; you can disinherit your heirs; and you can protect yourself as well as your family long after you die with a trust. These are just a few things that estate planning allows you to take control of in a preemptive fashion.

A few documents that may be included in an estate plan include the following:

• Will – This document informs your loved ones of your desires in relation to your property when you die. This document spells out the final distribution of your personal and real property. In addition to distribution of assets, a Will can include information about your burial requests, guardianship of minor children, and how debts will be paid. Dying without a Will means that your estate will be distributed according to Massachusetts Intestacy Statute. A Will allows you to control the distribution of your estate.

• Power of Attorney – This document informs third parties that an individual has your authority to act on your behalf when you are unable to because of incapacity, disability, or general unavailability. A power of attorney allows the named individual to make financial and legal decisions as if they were you. A Power of Attorney allows you to empower a trusted individual to cut the checks that keep the lights on from your own account.

• Health Care Proxy – This document informs health care providers that an individual has your authority to act on your behalf when you are unable to because of incapacity, disability, or general inability to make or communicate your health care decisions. A Health Care Proxy allows the named individual to make health care decisions on your behalf. By naming a Health Care Agent under this document you can control medical decisions through a proxy long after you can no longer communicate your desires for yourself.  

• Health Care Directive or Living Will – In general, a Health Care Directive informs others of your wishes regarding your health. A Living Will on the other hand is a directive focused on life-sustaining measures used to artificially prolong your life. Without these documents you may be subject to certain procedures that you do not personally approve of. A Living Will allows you to control what type of life-sustaining measures that you are okay with and when to stop the use of them if you choose to allow them at all.

• HIPPA Release Forms – The Health Insurance Portability and Accountability Act “HIPPA” protects your confidential health information. A HIPPA release form informs health care providers that they may disclose your protected health information to individuals that you have authorized. Without a release form your health care providers may not disclose your health information to anyone besides yourself. Having a HIPPA release form already in your medical file allows you to preemptively assist individuals you have trusted to handle your health care concerns.

• Homestead Declaration – This document allows you, as a Massachusetts resident, to protect your primary residence from creditors. Your primary residence is automatically protected for up to $125,000; however, the Homestead Declaration allows you to protect your home for up to $500,000, or possibly more if you are elderly or disabled. 

Trust – This document can give you more control over your property by operating during and/or after your life. Each person seeking a Trust will require a different approach, but all Trusts name a person as Trustee to control your property based off a specific set of instructions for the benefit of a person, multiple individuals, a pet, or an organization. A Trust allows you to avoid a public and potentially costly probate process; protect your heirs’ inheritance when you have doubts about their ability to manage their own finances; protect yourself from long-term care creditors and save the bulk of your estate for your named beneficiaries; and much more. Trusts are flexible, versatile, and not just for the rich and famous.