Estate Planning: How Much Does it Cost?

The better question, really, is. “What is the value of estate planning?”
The value of estate planning lies in providing security to your health and property for yourself and your loved ones. Those who fail to plan may see a major loss in assets, healthcare, and even the uncertainty of legal guardianship for one’s child in the case of incapacitation. The value of estate planning to a single parent could mean having the safety and security of choosing and knowing who will be the legal guardian of their child in the case of disability or death. Other issues could be avoided by planning and setting up trusts to hold to the benefit of their child to insure their future as well as to ensure the security of other assets to beneficiaries such as other family members.

In the case of a couple who own a home, a money market account, CD’s, and with their estate exceeding $1 million, failure to do estate planning results in any assets over $1million to be taxed by the Commonwealth of Massachusetts and also by the Federal Government (in the year 2013, assuming the return of the $1 million exemption) at a rate of 55%. This means double taxation and that less than half of the assets accumulated over a lifetime will pass to their beneficiaries.

In the case of an elderly or disabled person who may have long term care needs, perhaps including nursing home care, failure to plan could result in catastrophic loss of all the person’s lifetime assets. This is the value of Estate Planning. When you call asking us, “How much does it cost?”, I ask you to consider how much it is worth to you to safeguard your children’s future; to safeguard assets for your loved ones; and to protect yourself from nursing home impoverishment. How much is it worth to you?

Planning for "Never"

I am Suzanne Benfield, an attorney here at the Denise Kent Law Group and I especially enjoy helping out families with young children (like myself). Most people say to me, “Oh, I have a will. I’m all set.” Mmmmmm, no. Not quite. Not even close.

Unfortunately, we have to think of the worst case scenario. I have an acquaintance whose parents were killed simultaneously in an auto accident in upstate New York several years ago (really). The only good thing about it was that their children were grown adults, married and self-sufficient at the time of their death.

But what if the kids were young and at home with a babysitter while you and your spouse were driving to a local restaurant on a “date night” and the same turn of events occurred? Who would take care of and raise your kids in your absence? Not only should you consider who you would want to take care of your kids, but who would physically be able to take care of your kids? Further, how would that person/persons provide for your kids for day-to-day financial needs, as well as health insurance and college?

It’s really hard to imagine this scenario for yourself. Trust me, I know. Even though I am a lawyer, I didn’t have an estate plan in place for some time after my kids were born. More than imagining me not being alive, it was harder to imagine my young and vulnerable kids without me or my spouse. The good thing about this is that statistically, it is highly unlikely that both you and your spouse will be taken out simultaneously. But, we should plan for the worst case, so that no one else does it for you.
So, what to do? If you are like me, you don’t have a whole lot of assets…a house with a mortgage, a couple of cars, a retirement account, some cash accounts and maybe some other small investments. Will that, all together, support your kids in the event you die or can’t work due to disability? Probably not. So, I have life insurance whose proceeds will dump into a trust for the benefit of my spouse and kids. (Well, it’s a little more complicated than that, but that’s the jist of it.)

What happens if you don’t do estate planning? Should something happen to you and/or your spouse, a judge (who doesn’t know you or your family) will decide the fate of your children. And, the proceedings will be public. I can’t urge you enough to take the time to think about doing estate planning sooner rather than later so that in the unlikely event something does happen, things go smoothly and seamlessly for your children at an already very difficult emotional time.

We provide solutions to these problems. Please feel free to contact us at Denise Kent Law Group, where we enjoy helping people, one family at a time.

Denise Kent Law Group joins ElderCounsel & WealthCounsel

PRESS RELEASE:

Denise Kent of the Denise Kent Law Group is pleased to announce her affiliation with WealthCounsel LLC – a nationwide collaboration of trusts and estate attorneys and other legal, tax and business professionals, and also with
ElderCounsel LLC, a collaboration of Elder Law attorneys. As a member, Kent contributes to and draws on
the knowledge and expertise of thousands of her colleagues.

Attorney Kent said that she joined WealthCounsel in order to offer clients the most up-to-date estate planning strategies, and joined ElderCounsel in order to provide the most sophisticated solutions to issues facing the elderly and disabled. Using their resources, clients are assisted with cutting-edge planning techniques executed in documents that are comprehensive, flexible and easy-to-read.

WealthCounsel and ElderCounsel members contribute to the ongoing development of practice systems through web-based discussion groups, study groups and continuing education courses. This year's curriculum offering include such topics as, "Power of the Lifetime QTIP", "Using LLC
to Protect Family Assets", "Trustee Selection for Irrevocable Trusts" and “Medicaid Immersion”.

WealthCounsel systems were recently praised during the 45th annual Philip E. Heckerling Institute on Estate Planning hosted by the University of Miami School of Law.

Kent is pleased to bring such quality to her practice, and
looks forward to utilizing colleagues and resources to deliver technically up-to-date peer-reviewed documents, advice and counsel for clients.

Denise Kent founded the Denise Kent Law Group in 2008, and practices together with her associate, attorney Suzanne Benfield. Their practice areas include Estate Planning, Probate & Estate Administration, and Elder Law, as well as certain Family Law services, such as Divorce Mediation. Key services include Medicaid Planning
and Special Needs Trusts.

Kent is a graduate of Gordon College and Mass School of Law and is licensed to practice in Massachusetts and the U.S. District Courts of Massachusetts. In additon, she earned a Certificate in Trust and Estate Planning, from The Foundation for Continuing Legal Education, Inc., Wenham, MA

To learn more about the firm, visit www.denisekentlaw.com

SOURCE Denise Kent Law Group

The 2011 Budget Control Act and How it Affects My Clients

What follows is a VERY brief summary of the key issues that concern me and my clients, and ultimately, all of us.

The 2011 Budget Control Act established an agreed-upon deficit-reduction amount, but largely leaves specifics out. It is therefore difficult to know for certain what changes we will be looking at, but we do know that the Act puts major tax changes under consideration, and possibly social programs as well.

Personal income tax deductions/credits, and business deductions are back on the table for review by the special joint committee. Also, certain health programs (long-term care insurance & disability) that were slated to begin in 2012 may be abolished, if the committee follows the recommendations proposed by the "gang of six." Results: once again, such safety-nets as LTC and disability insurance will remain largely unaffordable for most Americans.

Additionally, the existing federal estate tax exemption, together with associated tax cuts that were enacted in December, 2010, are still slated to sunset on December 31, 2012, returning to exemption levels of $1 million, and a tax rate of 55%. Pair that with the proposed elimination of state tax credits, and you get a potentially horrific estate tax burden. Results: Many unsuspecting Massachusetts residents could be subject to both the Massachusetts (16-20%) AND Federal Estate Tax (55%) burdens, which could confiscate over 70% of gross estate, if they have not done proper estate planning!

I'll be watching carefully, because any changes in tax laws or health care reform programs need to be taken into consideration for estate planning, long-term care planning, and business entity formation/asset protection planning.

Estate Planning for Same-Sex Couples & Unmarried Life Partners

Same-sex couples and unmarried partners are confronted with many legal uncertainties due to the varying degrees of protection afforded them by the federal and state governments. Changes in state and federal law create a patchwork of protection for these couples.

Comprehensive planning is essential to protect inheritance rights, property distribution, and medical and final arrangement decisions. Tax planning and retitling are necessary to avoid unintended consequences.

Bodies of Law that affect unmarried but committed individuals:
 Probate Laws
 Domestic Relations Laws
 Disability Laws
 Tax Laws
What Benefits does marriage (as recognized by the federal government) confer?
 Property Rights
 Tenancy by the Entireties
 Homestead
 Corporate Benefits
 Pensions and Social Security
 Divorce
 Inheritance Rights
 Spousal Elective Share
 Probate Preferences
 Taxes

 Other Rights Include Legal Standing in Personal Injury Cases
 Loss of Consortium
 Intentional Infliction of Emotional Distress/Wrongful Death
 Other Rights
 Spousal Privileges (Testimony & Communication)
 Family Medical Leave Act
 Health Care Rules/Guardianship
 Premarital Agreements
 Adoption

What tools do I employ, as an Estate Planning Attorney?
 Life Alliance Agreements - non-marital agreement between unmarried persons
 Estate Planning Strategies
 Comprehensive Will package
 Comprehensive Trust package
Until the laws change, it’s important to plan accordingly so that your loved ones will be protected, and your wishes carried out.

Aging Info Expo

ANNOUNCING: AGING INFO EXPO
DATE: Saturday, October 3, 2009
TIME: 10 am – 2 pm
PLACE: Bessie Buker Elementary School
1 School Street
Wenham, MA 01984

Get information on many services, products, agencies and programs assisting elders in living as healthy and independent a lifestyle as possible. Speakers and vendors will provide information on Estate Planning, Money Management, Home Care, Nutrition, Nursing Home Advocacy, & Volunteer and Enrichment Opportunities.
Attorney Denise Kent will be available to chat informally with you and to offer some basic information on such issues as:

BASIC ESTATE PLANNING: Find out the various tools and strategies employed to create an effective estate plan, including wills, trusts, health care proxies, and powers of attorney, and discuss exactly what these instruments are designed to do.

LONG TERM CARE PLANNING: If you or a loved one may be facing the need for long term care, an estate planning attorney can implement a plan that will work to preserve the assets of the family and allow you greater control and dignity throughout a complex and often heart-wrenching process.

AVOIDING PROBATE: There are numerous strategies and tools available that can be employed to effectively plan your estate so as to avoid the costly and lengthy probate process altogether.

A complimentary lunch will be provided for those who pre-register. To pre-register, please call Trudy Reid, Wenham Council on Aging (978) 468-5529

Law Office of Denise M. Kent
254 Bay Rd.
Hamilton, MA 01982
TEL (978) 468-9000
FAX (978) 468-9008
www.denisekentlaw.com

Why YOU need a will:

•Regardless of whether you want to avoid probate, you should have a will.
•A will directs who receives your estate when you die, and it appoints a personal representative, the executor, to make certain your wishes are carried out. If you have minor children, a will enables you to appoint a guardian for their care.

•In conjunction with a Will, Health Care Proxy and Durable Power of Attorney, (and a Living Will/Advance Directive and HIPAA just to be extra cautious), you can create a solid estate plan that will serve to avoid a full probate proceeding and provide for the event of your disability as well.

•Probate is the judicial process by which a will (or, in the case of intestacy, the estate of the decedent) is reviewed by the court, debts of the estate are paid, and final distributions are made to the heirs.

•The probate process is public; anyone can go into the probate court and view your will and all of the related probate filings, which is a reason why many people use pour-over wills in conjunction with living trusts, in order to avoid probate and keep their wishes private.

•Your estate, whether you leave a will or not, consists of all of the assets that were in YOUR NAME ALONE when you died; therefor, if you think that you can avoid probate of your estate by simply refraining from writing a will, you couldn't be more wrong!

My spouse died, what do I do now?

You’ve been widowed... now what?
This post discusses common issues and challenges faced by newly widowed persons, and answers a question that was recently asked of me at a Seminar I had presented, “How to Avoid Probate”.

There are many legal and financial considerations that need to be addressed by a recent widow(er). After the initial shock and grief have been absorbed, a person can be left feeling confused and unsure of what to do in order to best secure their financial future and to ensure that their family is protected from the consequences of failing to plan for their own estate.

So, what to do after your spouse dies?

I would advise that you consult a qualified estate planning attorney and a financial planner. Pull together your financial information; get acquainted with your current asset, income, and debt situation. This is particularly important if you were not the primary person to handle finances in the relationship. You will now be responsible for your own financial maintenance, and it is important that you are able to understand the nature and quality of your investments, and determine the best strategy for ensuring that you will be able to live comfortably within those means. Perhaps you need to downsize your home, or update your life insurance policy? A financial planner can assist you with these issues.

You should also consult an experienced probate & estate attorney to probate your spouse’s will, if he or she left one. You may also need to re-title certain assets, if they are in your former spouse’s name, collect life insurance policies on your own behalf, and consider whom you have named as beneficiary on your own life insurance policies or retirement plans. If your spouse is still your named beneficiary, then now is the time to change that designation. You may also be entitled to certain government benefits such as Survivor’s Benefits from the Social Security Administration, which has information here: http://www.ssa.gov/pubs/10084.html
or certain benefits that are payable to surviving spouses of Veterans. Those benefits can include such assistance as bereavement counseling, burial assistance, or death pensions. Specific information on Veteran’s Benefits can be found here:
http://www.vba.va.gov/bln/dependents/spouse.htm

You will also need to consider your own estate planning needs. Have you written a will? What would happen if you were to die? Have you taken steps to ensure that your final wishes are carried out, and that the people whom you want to take care of will in fact be protected?
If you fail to take steps ahead of time, then the assets that are in your name alone when you die will pass through the probate court, ensuring a costly, public, and lengthy administration. Because you now own all of your marital property, your estate may be quite large. If your estate is sufficiently large enough to reach the estate tax threshold ($1 million in Massachusetts, $3.5 million Federal, for deaths occurring in 2009) then you absolutely should consult an estate planning attorney, who can help you to minimize the tax bite.

An estate planning attorney will assess the best plan for you, reviewing such factors as your health, family particulars, assets, income, expenses & debts, and create an estate plan that best fits your specific needs and wishes.
Note that if you have children or grandchildren with special needs, or family members who may be subject to bankruptcy proceedings or a child who might be facing divorce, then you need to consider how best to plan for them. If you don’t plan ahead, it is likely that the people you want to protect won’t be so protected, and the people that you don’t want to reap the benefits of inheritance (creditors or ex-spouses) might enjoy a nice bite of your children’s inheritance. An attorney can help you wade through these issues and determine the plan that is right for YOU, whether that is a simple estate plan or a more sophisticated plan that includes a trust.
While all of these considerations may seem overwhelming, it is important that you get your affairs in order, and work with experienced professionals who will assist you. May you find peace and comfort in your memories, and joy in the journey still ahead.

*** The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. You are invited to contact the office to arrange an appointment. Contacting Attorney Kent does not create an attorney-client relationship. Please do not send any confidential information to the office until such time as an attorney-client relationship has been established.

Guardianship Changes (& how to avoid this proceeding!)

What is a Guardianship action?

A guardianship is a legal right given to a person to be responsible for the food, health care, housing, and other necessities of a person deemed fully or partially incapable of providing these necessities for himself or herself. Sometimes the Guardianship encompasses both the right to make decisions on behalf of the incapacitated person and also to manage their financial affairs. This would be called Guardianship of the person and estate in Massachusetts.

Some Guardianships allow for extraordinary powers, such as the power to administer drugs, assent to medical procedures, or to commit a person involuntarily.

Guardians are held to the highest fiduciary standard, which means, in legal terms, that they must always act in the best interest of the ward. However, the probate court has lacked the mechanisms to control and prevent abuses of the Guardianship system until recently. This lack of control and lack of monitoring of Guardianships has led to some well-publicized and serious abuses of the system, wherein persons were stripped of their civil liberties and right to self-determination, or wherein their estates were looted by those Guardians to whom their money was entrusted.

The Massachusetts Uniform Probate Code was signed into law on January 15th, 2009, and the new Guardianship provisions become effective July 1, 2009.

The new changes are profound and will impact positively persons currently under Guardianship or possibly subject to future proceedings. Some of the more notable changes are;

* Limited Guardianships will be encouraged, so as to allow the incapacitated person as much personal freedom and self-determination as possible

* Guardianship control of the estate (a person's financial affairs) will be a separate and distinct proceeding

* Guardians seeking to admit an incapacitated person to a nursing home will now be required to obtain written findings by the court that such admission is in person's best interest

* Guardians will now be required to file annual reports on the capacity of person under Guardianship, whereas they previously only had to account for their management of money if they were Guardians of the estate.

* The probate court will now now mandate monitoring throughout the period of Guardianship

The net effect of these changes is a sweeping change that positively protects the rights and interest of individuals, and will very likely cut down the abuses that have existed in the previous system.

In sum, the MUPC offers many long-awaited positive changes to a flawed system. However, the more important point I need to make in summary is that most Guardianships can be avoided with pre-planning by means of a Durable Power of Attorney.

A Durable Power of Attorney is a seriously powerful tool, and yet it is often overlooked or misunderstood by people.

•A power of attorney is a document that allows you to appoint an individual to act as your agent (called an attorney-in-fact) should you ever become incapacitated, even if temporarily. You decide what powers your agent will have. For example: power to pay your bills, buy/sell property, make investments, run your business, etc.

•Benefits: allows you to avoid becoming the subject of a public, costly, and often embarrassing Guardianship proceeding, and allows your agent to act without delay.

•Drawbacks: The document is effective on signing; If you are uncomfortable with giving such power over to your agent immediately, you can give it in escrow to your attorney, to hold until such time as your physician deems you incapacitated. Obviously, give your physician a copy of the document.

I applaud the legislature for improving Guardianship law and practice. However, pre-planning so as to avoid such proceedings by having a Durable Power of Attorney in place in the event of your incapacity can avoid the cost, delay, and red-tape involved in a Guardianship proceeding.