Q: Do I need a
will?
A: If a resident of Massachusetts
dies without a will (also referred to as dying intestate),
Massachusetts law determines who will inherit the assets of the
estate and in what amounts. Therefore, most people prefer to
draft and execute a will, so that they will have some power over
the disposition of their own estate. In addition, a will allows
a person to name his or her executor, as well as appoint
guardians for minor children.
Q:
What is
probate?
A: Probate is the process that
governs the administration of an estate. Every asset that a
person passes by his or her will is subject to probate. In
Massachusetts, probating an estate customarily takes a minimum
of one year, and involves several phases, including but not
limited to, the initial filing of the Petition for Probate and
accompanying documents with the Probate Court, Legal Notice and
Publication, the preparation of a Probate Inventory, and the
filing of a First and Final Account. This is a very specialized
area of law, and it is extremely important to have legal
representation if one is an Executor of an estate.
Q:
What is a health care proxy?
A: A health care proxy is a
document that allows a principal to designate an individual as
their health care proxy or agent. The document empowers the
proxy to make medical decisions on behalf of the principal if
the principal becomes incapacitated and/or unable to make
medical decisions for him/herself.
Q:
What is a medical directive?
A: A medical directive (commonly
referred to as a living will) is a document that works in
connection with a health care proxy to give the proxy guidance
regarding the wishes of the principal in the case that the
principal becomes terminally ill with no meaningful chance of
recovery.
Q:
What is a durable power of attorney?
A: A durable power of attorney is
a document that allows a principal to appoint another person or
persons as his or her attorney-in-fact. The attorney-in-fact
will have the ability to sign legal documents on behalf of the
principal. It is a
“durable”
power of attorney because it will stay in force even if the
principal becomes disabled or incapacitated in any manner. This
document may also be drafted to limit the power of the
attorney-in-fact to a particular transaction, or to specifically
enumerated powers.
Q:
What is a
homestead?
A: Under Massachusetts Law, a
homeowner is entitled to protection from the future claims of
certain creditors of up to $500,000.00 of the equity ownership
in his or her primary residence. In order to take advantage of
this protection, a homeowner must file a Declaration of
Homestead in the Registry of Deeds.
Q:
What
are estate taxes?
A: Both the state and federal
governments impose a tax on the value of estates upon a persons
death. However, both the state and federal government also offer
a credit that allows many estates to be exempt from estate
taxes. The value of estates exempt from estate taxes varies
depending on the year of death.
Q:
Can
I avoid estate taxes?
A: As was stated above, the
federal and state credit allows many smaller estates to be free
from estate taxes. For larger estates, under certain
circumstances estate taxes can be minimized or even avoided
altogether with the proper estate planning. It is always good to
visit with an attorney to discuss estate planning and tax
considerations.
Q:
What is a
trust?
A: A trust is a vehicle that
enables a person to place assets (such as cash or real estate)
within the trust in order to facilitate various goals, such as
family and/or estate planning, or corporate transactions. |
