Is Your Will Enough?
Is Your Will Sufficient for Your Estate Planning Needs? Key ConsiderationsWhile having a will is a crucial step in estate planning, it's essential to understand that it may not address all your needs. This can happen in ways you may not even consider when you begin thinking about your estate plan. Here are real-life examples illustrating why a will alone may fall short:
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Wills in a Blended Family: Sam and Pat's Story
- Goal: Sam and Pat want to ensure the surviving spouse is taken care of, with assets going to their respective children.
- Issue: Unfortunately, their wills only control who receives what at the time of estate probate, potentially leaving the stepchildren without any inheritance.
- Solution: To achieve their goal, Sam and Pat need trusts. Trusts allow them to specify future asset allocation, ensuring the assets eventually pass to both sets of children. Furthermore, the trusts can provide protection against Massachusetts estate tax and potential long-term care costs.
The Importance of Updating an Estate Plan: Mary and Jim's Story
- Goal: Mary and Jim wanted to provide for the surviving spouse while maximizing the assets available for their children, and put these wishes into a will and simple trust fifteen years ago.
- Issue: Over time, the value of their home and retirement funds significantly appreciated. As a result, both Mary and Jim exceeded the Massachusetts estate tax threshold of $1 million when considering their home, retirement funds, and life insurance.
- Solution: To avoid significant tax liability, Mary and Jim needed to restructure their trusts to protect their assets.
Protecting Family Property: Chris and Jamie's Story
- Goal: Chris and Jamie aimed to preserve their cherished vacation property for their four grown children without any potential forced sales. The signed wills that leave the property equally to the four children, with a requirement that it cannot be sold without the unanimous agreement of all four children.
- Issue: Wills can only dictate what happens to property during the probate process. They cannot control what heirs do with the property after probate.
- Solution: Chris and Jamie should have established a trust that specified how decisions about selling the property should be made, ensuring their intentions are upheld.
Excluding Legal Heirs: Sally's Story
- Goal: Sally, a widow, wanted to divide her estate among three adult children she was close to and her two grandchildren, excluding her estranged fourth child.
- Issue: While Sally can disinherit her fourth child, her will did not explicitly mention this intention, potentially leaving room for legal challenges. Additionally, without proper planning, the two grandchildren might face issues if they are still minors when Sally passes.
- Solution: Sally should have explicitly stated her intent to omit the fourth child in her will and established trusts for the two grandchildren to ensure their financial security.
Online Will Pitfall: Jack's Story
- Goal: Jack, a single man, wanted to leave his home equally to his three children, with special care for one who had special needs.
- Issue: Jack used an online will service, which did not account for the delay in selling the home during probate and did not address the special needs planning.
- Solution: Jack needed personalized advice from an estate planning attorney to ensure proper asset distribution, including creating a special needs trust.
Durable Power of Attorney Limitation: Jane's Story
- Goal: Jane aimed to grant her child access to assets and bank accounts in case of incapacity or death.
- Issue: Jane's power of attorney became ineffective upon her death, leaving her child unable to access her assets.
- Solution: To ensure immediate asset transfer, Jane should have established a trust. Alternatively, a joint bank account could have been set up for interim expenses.
Meet Our Estate Planning 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
These real-life stories highlight why estate planning extends beyond a will. The good news is that these are easy problems to fix. We are ready to help. We can provide a comprehensive plan customized to your unique needs and goals, ensuring your legacy is protected and your wishes honored. You can use the button below to schedule a free information call, or simply give us a call at 781-784-2322.
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