Search Articles
Browse Categories
Are Your Loved Ones Protected?
By George Boerger, Esquire
The fact that you have started to read this article indicates that you care about your family and want to protect them when you are no longer around. Although there are probably many other topics you would rather think about than death, there can be no denying that at some unknown time we will all die. While an effective estate plan cannot postpone death, it can help ease the impact on those you leave behind. In addition, depending on the value of your estate, an effective estate plan could easily save $500,000 or more in estate taxes.
What is estate planning?
We all seem to spend a significant amount of time working to accumulate assets. Estate planning is simply the legal process used to determine who gets our assets when we are no longer here. More significantly, estate plans also dictate who will serve as the legal guardians of our minor children (under 18 years old) in the event of our untimely death. Not surprisingly, a significant percentage of my estate planning clients are young couples who have just had their first child and want to make clear who should care for that child in the event of their death.
What are the basic estate planning documents and how are they used?
There are four general estate planning documents which have different roles in the process: a will, durable power of attorney (“POA”), health care proxy and a trust. A will is the most common estate planning document and is used to direct who inherits your assets. You also use a will to specify the person who you want to be the legal guardian of your minor children.
With a POA you give someone the legal authority to manage your affairs while you are alive. The POA is extremely important if you become incapacitated and can be critical in helping your family deal with a host of issues if you are no longer able to make decisions. Without a properly executed POA your family may need to go to probate court to have a legal guardian appointed to manage your financial affairs.
A health care proxy gives legal authority to someone of your choice to make health care decisions on your behalf when you are no longer capable of making those decisions. You also can express your desires regarding end of life care including what extraordinary measures you either do or do not want taken.
The last basic document, the trust, can be used very effectively to save a significant amount of estate tax. A trust can also give you much more control over how and when your assets may be used by your heirs. A well drafted trust can allow your children to gain full access to their inheritance over a period of years as opposed to all at once.
Do I really need to prepare a will?
Surprisingly, the answer to this question is simple: NO. Even if you have not prepared a will on your own the Commonwealth of Massachusetts has drafted one for you. The real question is do you want to determine who gets your assets or would you rather the government make that decision on your behalf? Not surprisingly, the people who retain me prefer to make their own choices. If you leave minor children and do not have a will, ultimately a Probate Court Judge will decide who raises your children.
When is a good time to start or review your estate plan?
If you do not have any of the four documents discussed above, NOW would be a good time to start. If you already have an estate plan in place, you should review your estate plan when you have significant life milestones (e.g. birth of a child, new marriage, divorce, death of a close relative, retirement).
For a free half hour consultation, call 781-585-2900. For more information visit www.boergerlaw.com .
George Boerger, Esquire
The above article is intended to be a general overview regarding factors to consider in protecting your assets. You should consult with an attorney regarding your own situation and how to best protect your assets.
Rating:
Comments
- No Comments Found. Submit Comment
|
Article Options |
Share your Opinion and WIN!
Take our quick survey & enter to WIN a gift certificate.