ESTATE SUMMARY
This is a very brief and simplistic
explanation of different general ideas for planning your estate. It
cannot address any intricacies and maintain this simplistic approach. We
want you to obtain a very basic understanding of the relationships and theories
involved. There are other complications created by other aspects of
estate planning (different ownership interests, Medicare).
SIMPLE WILL:
A simple will provides for a one-time distribution of assets. It also
provides an opportunity for a decedent to appoint the executor or guardian of
his choice.
The simple will provides an opportunity to designate
certain gifts (if one chooses to do so) or to decide a distribution of shares
and to give direction to an executor with regard to resolution of disputes.
The executor is the "business manager" of
the estate. He/she will coordinate the collection, organization and
distribution of assets to the designated beneficiaries. The executor will
also coordinate and report to the Probate Court and the Estate Tax Bureau and
make payments required for bills or taxes. The executor's
responsibilities will usually require time at the beginning of the process and
at the end of the process which could very well stretch over 18 months to 24
months. You may or may not have a perfect Executor in mind but it is good
to pick this person. If you do not suggest someone, another of your
relatives might assume the role or cause a fight over who will carry out these
duties.
The guardian cares for the personal well-being of the
children until they are 18 and will be the custodian of any gifts to the
children until their 18th birthday. In the case of a death of a spouse,
the surviving spouse usually plays both of these roles and the process is
simplified. On the second death (the death of the surviving spouse), the
process may become more complicated with sale of real estate and personal items
and relocation. This is a very difficult choice. No family is
exactly like yours. However, if you do not designate this person, someone
you do not want may take the initiative and assume these very important
obligations. Your choice, here, is much better than someone
else's.
WILL WITH TESTAMENTARY TRUST: A will with a testamentary trust will operate
in the same way as a simple will when the first spouse dies. The
testamentary trust is formed when the second spouse dies. The property of
the estate is then distributed through this trust. The alternate executor
(since the primary executor, i.e. the spouse, is deceased) still coordinates
the collection and reporting requirements. The guardian still cares for
the personal well-being of the children and the trustee cares for the financial
management of the assets once transferred by the executor. The executor
holds the funds through the administration of the estate paying bills, making
returns and reports to the Estate Tax Bureau and the Probate Court, and
transfers the assets to the trustee with his final account. The trustee
then manages the assets and makes distributions as required to the
beneficiaries.
The primary difference between this document and a
simple will is the control you give to the trustee to hold funds which will be
distributed to the children. The intent is to provide 21 full years of
care and education for every child. Therefore, our standard testamentary
trust provides for the trustee to manage the funds in one lump sum until the
youngest child reaches the age of 22. Upon the youngest child attaining
the age of 22, the trustee divides the total into shares, one share for each
child, or one share for all the children of a deceased child. The trustee
then manages the funds until the child's 25th birthday. If an older child
has reached the age of 25 by the time this division occurs, his share would be
distributed outright. A child between the ages of 22 and 25 would have
access to the funds only through the trustee until his 25th birthday. The
Trustee is permitted by the general terms of the trust to make distributions to
the children that he deems beneficial or necessary to their care, education or
welfare. This intends that the Trustee would make decisions similar to
decisions you might make if you were alive. More specific terms are
usually not inserted because of our inability to forecast the exact situation
that might face the Trustee. Circumstances may not reflect your
expectations. There may be additional expense of accounting to the
Probate Court but most personal Trustees (not institutional Trustees) frankly
do not account annually. These assets are subject to claims before being
placed in trust.
I strongly recommend this type of document, at least,
in all cases in which young children are involved. I know that most 18
year old children do not have the best judgment when it comes to money.
POUR-OVER WILLS WITH REVOCABLE TRUST FOR CONTROL,
ONLY: The next level of
estate planning entails some probate planning with trusts. To avoid
property being probated but without a concern for tax planning, one can set up
a trust for your property to make it ‘non-probate’ property. You can be
the trustees and you can establish family members as successor trustees; there
is no requirement for an independent party to be trustee. You would have
a will that ‘pours over’ any assets left in your name to the trust so that it
will all be managed together. You could leave the property in your names
and it will pass through probate and be transferred to the trust once it is
probated, as well. This permits people to hold their property without the
trust during their lifetimes and to enjoy the same benefits of extended control
the property in trust without Probate Court management after death.
POUR-OVER WILLS WITH REVOCABLE TRUST WITH TAX
PLANNING: The next level of
estate planning entails some tax planning. A commonly used vehicle at
this level is the pour-over will with a revocable trust. A will simply provides
for distribution to a revocable trust upon the first death. The revocable
trust provides for a spousal share and a family share. (Property distributed
to the trust can be diminished by property which is owned by the surviving
spouse jointly). For example, all joint property can go to the spouse,
while all probate property (property owned solely by the decedent spouse) would
go the family trust for the benefit of the children. The benefit is that
the taxes due on the second death (the death of the surviving spouse), are
reduced by the amount of the assets which are the property of the children
under the terms of the family trust. The Trustee in these circumstances
must be an independent trustee which means the Trustee should not be related by
blood, basically. The Trustee should not be a person who benefits from
the trust, either. A joint Trustee arrangement can be formed with limits
on distributive decisions and with investment decisions to maintain
"independence" for tax purposes. The trust is revocable and
amendable during the lifetime of the person who has set up the trust affording
lifetime flexibility and reduced taxation on the second death. It also
provides for a guaranteed estate for the children who would be protected
against second marriages, should that be a concern. Planning is required
here to see what is going to be included in the trust to make sure that the
division is decided before the death occurs. A decision made after the
first spouse's death occurs will affect the surviving spouse's estate tax
credit.
One big difference between this trust and the
testamentary trust, above, is that these assets are not subject to claims
through the estate. Sometimes people worry that their plans will be upset
by objections of heirs or suing creditors. That would not happen with one
of these arrangements.
IRREVOCABLE LIFE INSURANCE TRUST: An irrevocable life insurance trust is a lifetime
document which becomes funded at the death of the insured. Other
property, cash, personal property or real estate can be conveyed to the trust
during the insured's lifetime, but when transferring other property, you must
remember that it will be out of the donor's control. As is required with
a revocable trust when reduced taxation is sought, an independent trustee is
required. The combination of an irrevocable document and an independent
trustee requires the grantor to plan his choice of trustee well. Changes
in trustees can be managed with proper language. This affords some
flexibility as would transfer by a cooperative, though independent, trustee to
a new trust or a resignation for the purposes of a new independent trustee to
take over. An institution can also be a trustee. A friend or
professional person could be a trustee and would certainly afford a more
personal approach to investment and/or distribution; however, a personal
trustee risks death, disability or personal problems interfering with the role
as trustee. These are not impossible to plan for with substitutes and
procedures for appointment and may be the most comfortable way to address this
situation. He can provide some rights to elect a different
"independent" trustee as well.
Life insurance (not a joint asset) made payable to
the spouse will be qualified for the marital deduction and therefore, not taxed
fully but the increased value caused by the life insurance in the estate of the
surviving spouse will probably cause a tax. The additional monies paid in
taxes for the additional monies received in insurance should outweigh the
difficulties and the lack of control afforded by this document, if it is used.
Payments by the trust for annual premiums can be
funded by gifts from the grantor or loans to the trust; although it would be
best for the grantor to disassociate him or her with the trust to the greatest
extent possible. Perhaps a gift of sufficient amount to maintain payments
for a number of years or in perpetuity, if possible, would be the best way to
fund the trust. Purchase of a policy that would maintain itself after a
number of years would be another manner in which to separate indirect control
from the grantor. The separation is helpful to the defense of potential
claims that these life insurance proceeds should be included in the taxable
estate of the insured. A gift to the trust to provide for payment of
premiums or of the value in a life insurance policy must survive the grantor by
three years to be excluded from the grantor's estate.
This type of trust is also a separate taxable entity
and should maintain a separate bank account and must file annual tax returns,
although the return may be a simple one.
DURABLE
POWER OF ATTORNEY
A durable power of attorney
provides you with the security of having designated a person to take care of
financial concerns for you should you be disabled by an accident or a
debilitating disease or condition. If you were injured or ill and could
not handle your personal finances, the person named in a durable power of
attorney could pay bills, deposit funds, transfer funds, continue a course of
giving or other estate planning on your behalf. Without a person
empowered to do this, you would require a guardian appointed by the Probate
Court to manage your financial affairs.
Most people believe that
they can control assets of a spouse but the only assets that are really
accessible to both are joint bank accounts and/or joint mutual fund
accounts. If you need to mortgage or sell the house or transfer stock
which is in both names, you will need a durable power of attorney or a
guardianship proceeding.
If a guardianship is
required, the process of petitioning the Probate Court to be appointed and file
an inventory would cost approximately $1500 to $2000 and annual time and
expense for Probate filings to maintain insurance that would be required to
continue as guardian. This is compounded by the expense to get special
permission to do extraordinary things with the property. A power of
attorney that is extended for special occasions or even for a period of time
would become void upon you losing your mental capacity. A durable power
of attorney is not affected by your mental disability.
Durable powers of attorney
still have some tentative situations, sometimes with banks, sometimes with real
estate attorneys, but it is an inexpensive alternative method of insuring some
flexibility that would not be available without it.
HEALTH
CARE PROXY
In Massachusetts, we do not have a Living Will
statute. The Legislature first enacted the Durable Power of Attorney
statute and then, very much in concert with other states at the time, started
addressing the concerns Living Wills were intended to serve. People
were afraid that some measures would be taken to extend lives that were not
desirable. The Legislature wanted to go beyond that limited function, so
they enacted the Health Care Proxy statute which provides for a designated
person who can make health care decisions should you not be able.
If you go to a hospital,
now, for an operation, you will be asked to sign a simple one if there is any
danger that you might not be conscious for some important decision making.
Planning ahead provides an
opportunity to address the potential that you might not be conscious when you
arrive at the hospital and to provide alternatives if the first designee cannot
act on your behalf. In addition, I have added language that defines
standards to limit heroic measures in order to avoid continued life in a
comatose state.
Health care proxies provide
a tool to avoid situations that could be avoided; to give health care
professionals the legal flexibility to manage your care with the cooperation of
your agent as you might, were you able.
[This is not a complete explanation of either
document but it gives you some information for thought and discussion.]
PLANNING
CONSIDERATIONS
DURABLE
POWERS OF ATTORNEYS
YOU
AND YOUR ATTORNEY-IN-FACT
In many situations, a
durable power of attorney can be the most important document in your estate
plan. As many have noted, the durable power of attorney is like an
informal trust. A person's finances can be managed during disabling times
without a guardianship, a trust or court oversight. In order to facilitate
the use of the durable power of attorney in foreseeable family situations,
estate planners usually draft a document with broad powers, similar to those
seen in trusts, to assure that your family will be able to take care of any
possible transactions. Many times, a client's family cannot do what they are
confident the principal would want because of an institution's refusal to
acknowledge a certain power in the document. The Court has stated that
the document should be narrowly construed and that the attorney's powers must
be specifically described in the document.
There are two kinds of
powers. One is called a 'springing' power which comes into force only
when a person becomes disabled. This can potentially be a problem because
one might always need to prove the principal is really disabled. To avoid
this potential problem, most planners and people choose a 'present grant'
power, which gives the attorney-in-fact the power to do as many different
things as we can imagine. At that point, do you need to protect yourself
from your own attorney-in-fact?
The attorney-in-fact stands
in a fiduciary relationship with the principal and owes a fiduciary duty
similar to a guardian to a ward or a trustee to a beneficiary. Some
documents limit the gifting the attorney-in-fact can do, stating that no more
than $12,000 per donee per year is authorized. In the more recent past,
though, it has been my experience that most planners have granted broad powers
and even explicitly permitted the attorney-in-fact to make gifts to him or
herself in order to effectuate long term care planning most efficiently.
That is usually the issue in most cases of abuse. Usually, the person chosen is
a trusted child or other relative who is loved and respected. In my
experience, that love and respect has been returned to the benefit of the
principal and the family, in general. However, we all know that some
attorneys-in-fact have not acted honorably. Most trusts have 'removal of
trustee' paragraphs and some estate planners have written about the possibility
of including a removal provision in durable powers of attorney.
I offer this document as a
discussion of issues. You have to decide what is best for you. I
can help define the risks and the processes, but none of us can predict the
future or future events. So, after you have read this, we should talk
some more if you have any questions.
PLANNING
STRATEGIES
DURABLE
POWERS OF ATTORNEYS
YOU
AND YOUR BANK
The more planning you do,
the better off you will be. However, the possibility remains that some
unforeseen obstacle will present some difficulty. Durable Powers of
Attorney were made a part of our planning strategies over fifteen years
ago. Our legislature decided that this document could help families manage
difficult times. There are financial institutions, however, that do not
and will not honor these documents. It seems inappropriate and I believe
it is. I can understand that some banks have been sued because a person
used a power of attorney inappropriately and money was taken from a disabled
person. However, there is always a possibility that some people will act
inappropriately. I don=t think it is appropriate to make a general
restriction because of a specific incident. If a bank does think that
way, I believe the bank should make sure its depositors know and understand the
policy.
Whatever the reasons, there
are banks who will not honor your power of attorney. Stockbrokers and
mutual fund companies will have administrative problems, as well, purportedly
due to SEC regulations. You should consult with your bank and with your
stockbroker or mutual fund to make sure that your durable power of attorney is
acceptable so that your attorney-in-fact can access your funds when
necessary. If not, you should ask for a power of attorney form that is
acceptable. I expect that they are available and will be provided without
cost. We will be happy to help you execute them to complete your document
planning. If a document is not provided, or there is no easy idea to help
resolve this problem without changing ownership of the account, I think you
have to weigh the benefits of doing business with that bank or financial
institution against the potential risks that may be created by their not being
cooperative. There might be another bank or financial institution which
would provide similar benefits without the risk.
PLANNING
OPTIONS AND CONSIDERATIONS FOR YOUR FUTURE
Re:
Life estates, trusts
durable
powers of attorney and
health
care proxies
Planning is usually
controlled by three things. First, people try to plan for smooth property
transfer at death to the next generation or to those they wish to give their
property. People use a Will to provide a distribution plan at death.
Property is directed to one's heirs either by designated gifts to specific
people or by a formula to a class of people, share and share alike, for
example. This property is controlled by the Probate Court and is subject
to claims of your creditors but not other people's creditors.
Sometime, simple trusts are
used to control property. The property is owned by you, as trustee, not
individually, and you control it and enjoy it. If you were disabled or if
you died, the successor trustee would take over for the other beneficiaries.
The successor trustee might be your spouse or one of your children. The
trust is for control purposes, only. There is no tax savings by utilizing
it. It will avoid the Probate Court, however, and for vacation homes, it
will avoid having two states involved in managing your estate.
Second, people try to plan
with regard to estate taxes. There are two standards, now. Massachusetts instituted
an Estate Tax, again, which starts at $1,000,000. The federal standard is
a life time exemption that protects $2,000,000 worth of property in each
person's name from federal estate tax. This threshold amount increases to
$3,500,000 in 2009. This tax disappears in 2010 and then comes back with
a $1,000,000 threshold in 2011. That means that $1,000,000 can be
protected from taxes in
Massachusetts if you use no trust mechanism and $2,000,000 if you
use a trust mechanism. Potentially, $4 million, right now, can be
protected for two people who are married in the federal tax plan. The
dilemma, right now, is deciding which tax you avoid. If you ignore the
Massachusetts tax and plan for the federal tax, your money from $1,000,000 to
$2,000,000 will be taxed creating an expense on the death of the first spouse
to die, but you will save more money ultimately in taxes upon the death of the
surviving spouse. If you plan to avoid the Massachusetts tax, your surviving spouse can
be tax free at the first death but there is less money protected from the
federal tax, which is calculated at a higher rate, and there is more due on the
second death. If your total estate is under $1,000,000, you need not plan
to avoid any taxes. However, if you have property in excess of
$1,000,000, you should investigate tax planning because after one death, the
planning is more difficult. If your estate is over $1,000,000, the
planning you do before the first death will reduce the taxes paid at the second
death.
Sometimes, in order to make it easy to access funds
or to avoid the Probate Court, people put another name on the title to their
property, bank accounts, mutual fund accounts, stocks or real estate.
Assuming there is a right of survivorship [the survivor gets the property],
these properties will not go through the Probate Court process but will go
directly to the surviving owner. There are risks, though, because
property in two or more names is subject to the creditors of the various
owners, so your property could be attached by your joint owner's
creditor. Of course, the ultimate risk is that your joint owner will take
your money, but that is generally unlikely. To change the names on bank
accounts or mutual fund accounts, you just notify the bank or mutual fund
company. For stock certificates, the company will have forms to be
filed. For real estate, I would do a deed for you and record it.
There are potential tax considerations to discuss with this process, as well.
Sometimes, a trust is used to control property after
death which can be paid out slowly or paid out at different events in the
future. This method is a little more expensive proposition because you
have cost to form a trust in addition to the transfer costs. A nominee
trust could name one person as the trustee and a number of people as
beneficiaries and direct the trustee that the trustee could act with a majority
vote. That would keep property in the family without requiring unanimous
consent to every transaction and everyone's interest would be protected.
It would also not expose one person's interest to another's creditor.
Sometimes, people use a life estate to keep
their property out of Probate Court. A life estate separates the control
and enjoyment of the property at the present time from the enjoyment of the
property in the future, when you pass on. You would have an exclusive present
interest in the property and the right to control the present enjoyment of the
property. You give the future use of the property to someone or the trust
we discussed above. With real estate, it means you can always have a
place to stay without someone else having a right to share the home. At
the same time, it makes your property non-probate property because it will pass
directly to your co-owner at your death. You do retain an interest and,
therefore, value in your name by virtue of the present interest that you retain
[the right to use it during your lifetime]. The granting of a life estate
creates a gift, however, that means that the person you add to the title has a
certain percentage interest in the property which depends on your age.
This means you have to get that person's signature on any deed out. It
also means that the person has a basis in the property for tax purposes of that
certain percentage of your basis. If there is a sale, the grantee might
be liable for capital gains taxes, depending on your basis in the
property. There is a tax benefit of a life estate in that the whole value
of the property is essentially included in your taxable estate and, therefore,
your co-owner gets a higher basis in the property for tax purposes. This
is different from a simple joint ownership.
Theoretically, any traceable transfers for less than
fair market value might be included in the taxable estate, anyway, and taxes
might be paid. If an asset is included in a taxable estate, even if taxes
are not paid, the asset will then have a "stepped-up" or a new basis
at fair market value.
Sometimes the transfer to another name will affect an
abatement that you might have for lower real estate taxes on your home.
This decision is supposed to be a standard decision but the
state gives local assessors some independence in some
decision making. You must double check with your assessor to see what
your assessor is going to do.
Finally, for long term disability planning, people
are concerned that their property will used for their long term care and
nothing will be left to pass on to their heirs. If they have a long term
disabling injury or condition their property might be used up by nursing home
costs. To be eligible for Medicaid financial support, you have to spend
all but $2,000 of your assets not including your home, simply speaking.
[There are spousal shares that are permitted so the first spouse has more for
support.]
A vacation home is considered an investment asset so
it must be sold. If you are too ill to ever return to the home, you could
be directed to sell your home, too. Property that is gifted to a person
within five years can be fully or partially recalled. To be free from
consideration, the property must be given away five years prior to the
application for Medicaid, realistically.
Property placed in a trust is considered an
investment asset and recallable for a five year period. In addition, an
additional five year period can be opened by an inadvertent move by a
trustee. Trusts are a more complicated long term care planning
tool. They still might be the vehicle of choice for property other than
the home depending on the situation.
Many people consider life estates for their home, not
a vacation home. In that situation, you retain a present right to live in
the home with a right or future ownership presently given to someone
else. Currently, this is not considered a countable asset for Medicaid
applications because you might return there if you were able after some future
hospitalization. However, it could be decided that its value must be used
for your care and so part of it could be used up for long term care. If
you gave it completely to someone else and, within five years, you became
disabled and needed long term care and you applied for Medicaid, they could
deny benefits and, now, with a new statute, the government could file criminal
charges alleging that you gave away your property intending to qualify for
Medicaid. If you gave the home to someone, and five healthy years pass
by, then it would be completely clear and not part of your assets and they
could not deny you Medicaid benefits because you gave it away. If you do
this, however, the grantee's basis in the property for tax purposes will be
your basis. If they sell it, they will pay capital gains taxes on the
difference between your purchase price plus capital improvements and the sale
price. They cannot take your one time exclusion from the capital gains
tax.
Sometimes people do the transfer over time, with a
promissory note and a mortgage back to you. Then, as each year comes, a
bit of the price is forgiven [$12,000 per donor/giver per donee/recipient] and,
over time, the capital gains difference is eliminated by the gifts of $12,000
per donee. On one hand, if you ever wanted to collect, you could.
One the other hand, if Medicaid authorities wanted to collect, they could, too.
With a vacation home, I think the most reliable
option is a gift outright to one person or to a group followed by five healthy
years. After the five years, it is not considered yours. The
primary risk in a complete gift from my perspective is the possibility that you
would deny access to the house or that grantee might suffer a financial setback
and the house would be lost to you for other reasons. Or there could be a
falling out in the family and personal conflict could complicate the use of the
vacation home. You have to balance the risks. A relative
expensive alternative, usually reserved for family businesses, are family
limited partnerships to transfer control more gradually or maintain some
measure of control.
For cash, mutual funds and stock, for some reason
with regard to long term care planning, these items are treated differently
from each other. In establishing Medicaid eligibility, cash in a joint
account is considered all yours. Property held in joint names in a mutual
fund or stock is considered part yours and part the joint owners. For
long term care planning, then, it makes sense to invest in some conservative
mutual funds in joint names. After five healthy years, these assets would
be considered only part yours.
Annuities are used as a planning tool in Medicaid
planning, as well. Most people are just not that familiar with
annuities. The purchase of an annuity is considered an exchange for fair
value not a gift or an exchange for less than fair market value. A
transfer for less than fair market value is a disqualifying transfer under
Medicaid rules. So, the purchase of an annuity is a tool to limit the
loss of cash assets for long term care. When you purchase an annuity, you
use cash, an asset, to purchase a contract to pay a certain amount per month
for period of time, either a set number of years or for life. This
changes the cash asset into an income source, however. Instead of paying
out $5,000, or more, usually, per month for long term care, you might receive
$800 per month for 10 to 15 years, for example, which would be used for your
long term care. The contract to pay money every month has market value so
it is a trade not a gift. Then, an applicant might qualify for Medicaid
immediately.
As I explained a Durable Power of Attorney
establishes each other and then a child as the person who could manage your
finances should you be disabled or incompetent. It could serve as an
informal conservatorship or guardianship. Without a Durable Power of
Attorney, if you were disabled by an accident or injury or illness and could
not manage your finance, a probate proceeding would have to be started to
manage your finances. This usually costs about $1,500-$2,500 to set up
and $750-$1,000 per year to manage. With a Durable Power of Attorney, the
attorney in fact set up by a Durable Power of Attorney could pay bills and
manage your finances without that expense.
Also, if you were disabled,
a Health Care Proxy allows a spouse or family member to discuss care with your
physician and to direct that no emergency measures be used for your care.
All hospitals require them now before admission if you are competent. If
you are unconscious or incompetent when you are admitted, it is not possible.
Lastly, with the five year
look-back for all transfers, an irrevocable trust has become a useful method
for long term care planning. There is a separate hand-out for this topic.
Joint
Accounts
Probate
Control, Estate Tax Planning, Long Term Care Planning, Risk
Joint accounts have been
used for many purposes. When you use a joint bank account, the account
agreement usually provides that the survivor receives the account upon the
death of either account holder. There is a statutory presumption in Massachusetts law that a
joint account has survivorship as a characteristic. This is good if you
do not want to have any probate assets at death. This is bad if you put
the other person's name on the account just so he or she could write checks for
you.
For estate tax purposes, if you hold a joint account
with a spouse, only half of that account is deemed yours on an estate tax
return. The other half is deemed a spousal asset. If you own a
joint account with someone other than a spouse, it is deemed all yours and
taxable. You can prove by affidavit that it is only half yours if both of
you deposited funds and both withdrew from the account as if it were your
own. If you add a person's name to an account, it is considered a gift of
one half of the amount in the account.
For long term care planning, if you own a joint bank
account with someone, it will be considered all yours and usable for your
care. If you own a joint account in a mutual fund, at the present time, it
will be considered one half yours and one half the other person's. Of
course, if the other person is your spouse, it will be considered an asset
available for your care, but if it is a son or daughter, it will be considered
that person's and not available for your care. There would be an issue
about when that person's name was added, as there is a disqualification period
for all gifts. This interpretation applies for mutual funds, stock,
bonds, including Treasury bills or bonds, savings bonds and money market
accounts.
Finally, there is always an element of risk with joint
accounts. Your joint owner’s creditors essentially can get a claim on the
account, and the joint owner usually has a right to access the account.
So, with the benefit of no probate problem or a better MassHealth application,
there is real risk. To many, if not most, people, this risk is worthwhile
if the joint owner is a trusted child or friend.
ESTATE
PLANNING FEES
SINGLE
DOCUMENTS
Will without Testamentary Trust ................................$200.00
Will with Testamentary Trust .....................................$300.00
Durable Power of Attorney ........................................$250.00
Health Care Proxy.....................................................$175.00
Declaration of Homestead
.........................................$100.00
plus $35.00 recording fee
Codicil to Will
..........................................................$175.00
HIPAA Release Form ………………………………….....$100.00
DOUBLE
DOCUMENTS
(Husband and Wife)
Wills without Testamentary Trust ...............................$300.00
Wills with Testamentary Trust....................................$400.00
Durable Powers of Attorney .......................................$350.00
Health Care Proxies .................................................$275.00
Declaration of Homestead
.........................................$100.00
plus $35.00 recording fee
Codicils to Wills........................................................$200.00
HIPAA Release Forms...............................................$150.00
Life Estate Deed (including recording)..........................$375.00
Irrevocable
Life Insurance Trust ..................................$1,500.00
ABC Trusts with Will, Health Care Proxy and Durable Power.....$3,000.00
Any two
types of the documents listed above generate a 10% discount.
(For
example, a Will + Health Care Proxy)
Any
three types of the documents listed above generate a 20% discount.
[H/W
Wills, Durable Powers, Health Care Proxies - $1,025-20%=$820]
Please
Note: All fees are based on our standard documents, unaltered, executed
simultaneously in the office.
Half
the fee is required in advance, the balance at signing.