End of Life Legal and Financial Checklist
Preparing for End of Life: Legal and Financial ConsiderationsFacing end-of-life considerations is never easy, but ensuring that your legal and financial affairs are in order is essential for your peace of mind and the well-being of your loved ones. This checklist is designed to help you navigate these important matters efficiently.
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Health Care Proxy
A Health Care Proxy authorizes a trusted individual to make medical decisions on your behalf if you become incapable of doing so. Unlike a MOLST (Medical Orders for Life-Sustaining Treatment) form, which specifies emergency medical interventions, a Health Care Proxy covers a broader range of medical decisions. Ensure your Health Care Proxy:
- Designates someone trustworthy who can become informed about your condition and wishes.
- Includes a provision allowing medical providers to share your medical information with the proxy.
- Names an alternate proxy in case the primary one is unavailable.
Power of Attorney
A Durable Power of Attorney grants a trusted person the authority to act on your behalf in financial, legal, and other matters. Their powers mirror yours and can include accessing bank accounts, signing documents, and managing your financial affairs. In end-of-life situations, this individual often handles bill payments, final arrangements, and financial transfers you wish to make while you are still alive.
Will and Trust
A Will specifies how you want your probate assets distributed and designates a personal representative (executor) to oversee this process. Even if most of your assets bypass probate, a Will streamlines the process and addresses various minor matters. A Trust, on the other hand, allows you to manage and distribute assets without going through probate immediately upon your passing.
Last Minute Estate Tax Planning
If your combined probate and non-probate assets, including life insurance proceeds, are expected to exceed $2 million, consider estate tax planning to potentially save your loved ones money in Massachusetts estate taxes. Married individuals can set up a trust that passes assets to their spouse without incurring tax and allows the spouse to use their $2 million exemption on top of their own when distributing their estate. Single individuals may also have options to reduce the tax burden with the guidance of an experienced estate planning attorney.
Life Insurance and Investment Accounts
Ensure your family is aware of your life insurance policies and investment accounts, and update beneficiaries if necessary. Having live beneficiaries allows funds to bypass probate, while funds with no designated beneficiaries or those with deceased beneficiaries may have to go through probate. Keeping this information up to date ensures a smoother transition of assets.
Ensuring Available Cash
A power of attorney becomes invalid upon your passing, leaving your appointed individual unable to access bank accounts or conduct business transactions. To cover immediate expenses like funeral and burial costs, maintain sufficient cash in a jointly held bank account that can be accessed promptly, as opening a probate estate can take 2-3 months.
Conclusion
Taking these steps now can alleviate stress during a difficult time and ensure that your wishes are respected. Consulting with an experienced estate planning attorney can provide invaluable guidance and assistance in navigating these legal and financial matters.
Meet Our Estate Planning and Probate Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna wrote a book on estate planning: The Road to Peace of Mind: What You Need to Know About Estate Planning. Jenna has helped many individuals and families with planning to protect their legacies and loved ones, and planning for the future and succession of their businesses.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and earned her LLM in estate planning from Western New England Scool of Law in 2016. She has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped many clients with planning for their legacies and their future, and navigating the probate process in Massachusetts after the death of a loved one.
How We Can Help
We're here to provide you with essential information and support to ensure your end-of-life legal and financial affairs are well-prepared. You can use the button below to schedule your free information call, or simply give us a call at 781-784-2322.
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