If 2020 has taught us anything, it is to hope for the best, but plan for the worst. This also holds true when it comes to estate planning. While most people plan to live a long, healthy life, it is important to have certain legal documents in place in the event that you fall ill or pass away. Who needs an estate plan? While this is not an exhaustive list, here are a few important factors to consider:
- Anyone over the age of 18 should have a Health Care Proxy and Power of Attorney. If you do not designate someone to make health care and financial decisions for you prior to becoming unable to do so, the state will decide who has this authority through a time consuming and expensive court process called guardianship and conservatorship.
- Parents with minor children or children with a disability should have a Will and a Trust. In Massachusetts, a Will is the only place a parent can designate a legal guardian for a minor child or disabled adult child. A Trust can hold assets until children are mature enough to receive outright distributions, or for the duration of the beneficiary’s life.
- Anyone who owns real estate should consider avoiding probate. Certain assets can pass directly to a beneficiary upon your passing. However, if you own real estate in your name, even if you have a Will, it will require that your estate is probated to transfer your real estate to your beneficiaries. A Trust can avoid the need for probate and provide other valuable protections.
