An estate plan serves many purposes, the most important of which is to outline how assets should be distributed in the future. An effective estate plan allows an individual to name the person to make decisions if you become incapacitated.

Every client has specific goals when it comes to estate planning. Attorney Maggiacomo will listen to your needs and develop a plan that fits your individual situation, creating a plan that truly reflects your wishes for the future through the right combination of estate planning tools.

Such tools include a: (1) will, which is a document which lists how your assets will be distributed; (2) trust, of which there are various kinds used to protect asserts such as a special needs trust, charitable trust, investment trusts, and real estate trusts; (3) living wills, an instrument which will express your medical directives for health care professionals in the event that you become temporarily or permanently disabled; and (4) a power of attorney, an instrument which establishes a durable power of attorney which allows you to choose an individual to handle your financial matters if you should be unable to.

A basic estate plan should include a will, a power of attorney and a health care proxy. While these are the basics, if you have savings or valuable assets such as a home, a trust can be a very important and effective estate planning vehicle.

Wills

The oldest method of passing your wealth to your heirs is the will. In a will you nominate an Executor, a person who will be given the authority to transfer your assets to the heirs you name in your will.
A will requires a court process called probate. During the probate process a will is accepted by the court and then the court will give the nominated executor an appointment. Without the Probate Court’s appointment the executor will not have any authority to act for the estate.
Probate takes a relatively long time to complete. A reasonable time in Massachusetts is eighteen months, and costs approximately 5% of the probate estate, the expenses consisting of the filing fee, attorney’s fees, executors fee, accountant fee, appraisal fee, as well as other fees.

Trusts

A trust is a legal relationship whereby one individual transfers his or her assets to another individual who holds and manages these assets for the benefit of others.

A trust can be established during your lifetime, or upon your death under the terms of your will.

Trusts have different characteristics depending on the provisions included in a trust deed. A trust may be revocable or irrevocable; discretionary or specific. To allow for maximum flexibility, most people establish a discretionary trust, which gives the trustee discretionary power to react swiftly to changed circumstances

Trusts have many advantages. In the area of testamentary distribution of assets after death, a trust can accomplish: (1) avoidance of delays and cost of probate proceedings; (2) protection of your family from creditors or financial predators; (3) promotion and implementation of your intentions and goals; (4) provide e protection for children or loved ones susceptible to reckless spending; (5) protection of yourself and your family’s assets from lawsuits and divorce judgments; and (6) protection, maintenance and building your family’s wealth for future generations

One can have “stepped” distribution, such as one third to the children at age X, one half of the balance at age Y, and the balance at age Z. This can be useful for younger children or spendthrifts, or to protect assets from being distributed too early to a child whose marriage is in danger. Other trusts may have provisions for distribution only at the discretion of the trustee or trustees. This can protect assets which would stop state aid to a disabled child or be recovered by the state if given directly to such a beneficiary. Discretionary trust provisions can also be helpful if a beneficiary has drug or alcohol dependency issues, or for divorce proofing a child’s inheritance.

Power of Attorney

A power of attorney is a legal document that authorizes another person to act on one’s behalf, granting either complete authority or limited authority to perform certain acts for certain periods of time. In essence, a power of attorney allows an individual to handle the financial affairs of another including buying or selling assets, depositing or withdrawing funds from bank accounts, as well as numerous other functions.

A power of attorney can commence immediately, or upon one becoming incapacitated. The power of attorney can postpone or avoid a conservatorship if an individual becomes disabled.

A power of attorney is inexpensive, and is an essential part of an estate plan.

Health Care Proxy

A health care proxy is a document which gives an individual or individuals the legal authority to make medical decisions (including termination of life support) for a person if that person becomes incapacitated and unable to make those decisions personally.

Living Will

A living will is a document in which a person specifies the kind of life-saving and life-sustaining care and treatment he or she does or does not wish to receive in the event the person becomes both incapacitated and terminally ill.