What happens to them if something happens to you?
Don't let a stranger decide. We assist clients with their estate plan so their family protected. You can make your plan as detailed or structured as you would like. We help you with ideas or implement those ideas that you already have. The important thing is that there is a plan for the unexpected life occurrences. Don't put it off.
MINOR CHILDREN
In the worst scenario that you and your spouse were to die, leaving surviving minor children, you need to have a plan for them. If you do not, the court and people you do not know, will need to intervene to formulate the plan. How can you prevent this as inexpensively as possible?
You need to have a basic Will for starters. If you prepare a Will, you can state with certainty who is in charge of your estate to manage your assets. You will want to name an Executor or Executrix. You can also designate a guardian for your children in your Will.
It is necessary that the Will be prepared using all the formalities required by the Massachusetts law to be valid. Primarily it should be the free act and deed of the person making the Will and should be notarized and signed in the presence of two witnesses who do not benefit by receiving anything in the Will.
Some persons would also use a Trust as an estate planning tool. In most situations, it is possible to appoint a Trustee to manage your assets after your death for the benefit of your minor children.
If you are a couple without significant assets worried about how your children would be supported, you could prepare a Trust now, that will be funded with Life Insurance proceeds at the time of your death; but it is extremely important that this is set up with detail, as there are things that could cause it to fall into the probate court. For example, you must make sure that life insurance is payable to the specific named Trust as the beneficiary when setting up the life insurance policy.
With a Trustee appointed by you in your Trust, you can designate in what manner the trust funds should be used. For example, you may want those funds to be used for the benefit of the children and also have an additional requirement that they be used for the children's education.
Of course each estate plan must be carefully drafted to the needs of the particular family, couple or single parent. The statements here are quite general; and should not be construed to be a perfect plan for your individual situation.
As in all situations presented here, there is no substitute for obtaining legal advice for your specific situation.
Many persons have very limited knowledge in the areas of Medicaid and Medicare. Some have called wanting to put their home in a trust so that Medicaid does not take their home asset upon their death. With topics such as these, which concern regulations mandated by the state and federal government, we encourage persons to discuss their specific situation with an attorney. There are things you can do to protect your assets, so long as you make a plan in advance. You want to become familiar with the regulating laws, the "look back statute." What are countable assets and non-countable assets. There are also special rules for the principal residence.
HOMESTEAD PROTECTION
An Estate of Homestead is a type of protection for a person’s residence, in the form of a document called a “Declaration of Estate of Homestead”. The form is filed at the Registry of Deeds in the county where the property is located, referencing the title/deed to the property. It allows homeowners in Massachusetts to protect their property up to five hundred thousand dollars ($500,000) of the value of their primary residence, per family.
The real property or manufactured homes of persons sixty-two (62) years of age or older, regardless of marital status, or of a disabled person or persons, regardless of age, shall be protected against subsequent attachment, seizure or execution of judgment to the extent of five hundred thousand dollars ($500,000) each.
However, a new Massachusetts homestead law, which was supported by Governor Patrick, allows for automatic homestead protection of all homes in Massachusetts. All homes in Massachusetts will have an automatic homestead exemption of up to $125,000. The law protects all Massachusetts homeowners, up to $125,000. However, a written homestead filed properly with the Registry of Deeds, provides $500,000 in protection. The cost of the filing fee for a homestead is $35, and the cost of retaining an attorney to assist you is, generally inexpensive.
