SOUTH SHORE ESTATE PLANNING LAWYER
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Importance of Estate Planning
- Avoiding Probate: Proper estate planning can help avoid or minimize the probate process, which can be time-consuming, costly, and public.
- Protection: It protects beneficiaries, particularly children or individuals with special needs, by ensuring that their inheritance is managed responsibly.
- Control: Estate planning allows you to maintain control over how your assets are distributed and who will manage the estate after you pass away.
Key Components of Estate Planning
- Wills:
- Every person should have a will. A will outlines how a person’s assets should be distributed after their death. It can also name guardians for minor children and specify wishes for funeral arrangements. Without a will, your assets could go to someone you never intended or wanted to receive any portion of your estate.
- The person creating the will (the testator) appoints a personal representative (formerly called an executor) to manage the estate according to the will’s instructions.
- Trusts:
- A trust is a legal arrangement in which one party (the trustee) holds and manages assets for the benefit of another party (the beneficiary). Trusts can be set up during a person’s lifetime (living trust) or upon their death (testamentary trust).
- There are several benefits to having a trust. For example, living trust assets do not go through probate. In addition, a trust can manage assets for minors or incapacitated individuals.
- Homestead:
- A homestead is a declaration recorded at the Registry of Deeds that your property is occupied as your primary residence. A homestead protects you against creditors with a limit of $500,000.00.
- Every homeowner should have a homestead. A new law allows residences held in trust to receive this protection.
- Beneficiary Designations:
- Certain assets, like life insurance policies, retirement accounts, and payable-on-death accounts, allow for the designation of beneficiaries who will receive the assets directly upon the person’s death, thereby avoiding probate.
- These designations should be reviewed regularly to ensure they align with the person’s overall estate plan.
- Health Care Proxy:
- A Health Care Proxy specifies a person’s wishes regarding medical treatment and end-of-life care in case they are unable to communicate their decisions.
- This document may also include a Do Not Resuscitate (DNR) order or instructions for life-sustaining treatments.
- Power of Attorney (POA):
- A POA is a legal document that grants someone else (the agent or attorney-in-fact) the authority to act on the person’s behalf in financial or medical matters if they become incapacitated.
- There are different types of POA, including durable power of attorney (remains in effect if the person becomes incapacitated) and healthcare power of attorney (specifically for medical decisions).
The Role of an Estate Planning Attorney
- Advising Clients: Estate planning attorneys help clients understand their options for managing and distributing their assets, considering factors like taxes, family dynamics, and potential future needs.
- Drafting Documents: They draft wills, trusts, POAs, healthcare directives, and other essential documents to ensure that the client’s wishes are legally enforceable.
- Updating Plans: As circumstances change (e.g., marriage, divorce, birth of children, changes in the law), attorneys help clients update their estate plans to reflect their current situation.
Estate planning is an effective way of managing and distributing an individual’s assets before and after their death. If you believe that you might benefit from estate planning, fell free to call me at 781.331.1500, e-mail me at peterdempsey@yahoo.com or use the contact link provided in this site. Initial consultation is without charge. Offices are located in Marshfield, Hingham and Quincy.