Trustee & Executor
Our clients frequently ask for our fiduciary services. Once they know that we can handle the estate from start to finish, letting the family concentrate on family matters, clients get on board with our serving as the trustee.
Simply put: it’s more efficient to have us serve your estate as trustee. Acting as lawyer and trustee we can get more done in less time.
As personal representatives (executors) of estates and as administrative trustees we act compassionately, professionally, and without bias. And the icing on the cake: Experience has shown that it is often no more expensive to have us serve as your family trustee compared to providing only the legal services to busy and distracted family executors and trustees.
The choice of an Administrative Trustee – the one who collects, manages, and sells the assets, decides on the timing of distributions, and deals with tax and other filings, has a lot of responsibility. You might say that anyone with a degree of life experience can do the various jobs of a trustee because they appear to be the routine chores of life.
That said, with the estate, there are more issues to address in a shorter period of time and the stakes are higher than handling your own affairs. For the trustee, it’s like having a second life to run on top of their own, and a more demanding one at that. To use an analogy, just because I can drive a pickup truck, doesn’t mean I should be trusted behind the wheel of an 18-wheeler simply because they both have steering wheels. My automotive abilities are limited to my own experience. I would be out of my league driving a big rig, despite years of driving automobiles.
The scale of the job as trustee or executor, navigating the family dynamics, the financial, tax, and legal interactions is more than most, even savvy individuals, can handle or handle well.
Increasingly, clients are choosing Borchers Trust Law and its corporate trustee affiliate, Northeast Private Trustees, LTD., to serve as professional fiduciaries. We are able to rely upon decades of experience in providing these “big rig-level” services.
Appointing a family member as a trustee is often seen as a reward for good behavior and leadership within the family. Given the amount of work involved and the stress of dealing with family members, and the multiple financial, tax and legal issues, it is hardly what I would call a prized position. Experience has also shown that the child or relative who covets the position of trustee, may also be hungry for power and influence in such a way that may cause, rather than assuage, family tensions, which is something else to consider.Rather than assume that a family member wants this position, it may be better to be sure, first, that it is understood the kind of work, responsibility and potential liability involved. The buck stops with the trustee as far as making decisions on priorities, liquidating of assets, establishing deadlines for family involvement such as cleaning out a home, and the making of discretionary distributions of money and property.How these tasks are handled can make or break the trustee’s family relationships. Popularity should not be at issue, but sometimes making decisions can sour relationships for a long time to come, even if they’re made after deliberation and advice, and in accordance with “mom and dad’s wishes.”Posting a professional as trustee can alleviate the problems associated with mixing business and pleasure within the family.
Sometimes family members are clearly too busy, preoccupied with their own lives, and occasionally they are simply incapable of the multitasking necessary to be a successful trustee.Our test of whether family members should be chosen includes life experience, trustworthiness, diligence to complete tasks, ability to communicate effectively with other family members, patience for following trust rules, dealing with lawyers and accountants, attending promptly with deadlines, and seeing a project through to the end with a complete accounting of activity. You have to ask yourself, “Does my son, daughter, etc. possess these qualities?” Typically, families enjoy one or two members who have many of these characteristics. What the family members may lack is time.What our office offers is the time that very often is missing from the lives of otherwise capable individuals. After decades of trust and estate administration, we can offer the expertise and dedicated time you are looking for.
While trustees can be chosen to work together from each family, most of the time mom and dad perceive of one person from one side of the family as an obvious choice. The choice is “obvious” to them, but not necessarily to the heirs on each side. It may be difficult for this person to remain balanced and impartial in many cases. Therefore, posting an individual who is independent and professional can make the difference between a successful and harmonious transfer and one that is uncomfortable or even acrimonious.
Given that there are deadlines for the filing of taxes, providing accounts to beneficiaries, and court filings in some cases, as well as liability for decisions on when to liquidate investments that may be volatile, and similar loaded judgments, it is little wonder that trustees are sued for their breach of fiduciary duty. Arguably, family members who were not trained professionals are held to a lower standard and therefore may have less potential for damage awards against them. If a family trustee is liable, chances are he or she does not have any errors and omissions insurance to cover their liability. If they are successful in defending a lawsuit, then they can expect the trust to pay for the attorneys fees involved, but otherwise they may be on the hook to pay their own way, which can be very costly.Having your family member trustees held to a lower standard should not necessarily give you peace of mind. Presumably, you want your trustees to be held to a high standard of conduct. As professional trustees ourselves, we have to hold to high standards for the many responsibilities involved with settling an estate.
While such professionals should have many of the skills required, unless they have extensive experience, they will be learning on the job. But it is wrong to think that just because one has a Doctor of Laws degree or is a Certified Public Accountant, he or she has the requisite skills to complete a trust administration professionally.In our office, we did not seek out trustee appointments until after nearly 3 decades of experience in the field. Our expectation is that senior attorneys will remain involved in the administration of trusts and estates while training others to take on more and more responsibility, producing experience and reliability to complete estate and trust administrations that are multiplying weekly.
Sometimes, being put in the position of having to say “no” to a beneficiary in response to a request is too much to ask of our family members when it comes to administering a trust for their siblings, nieces and nephews, and so on. As professionals, we can be objective, and still find satisfaction in carrying out our clients’ wishes, difficult as it may be at times. Beneficiaries with special needs and handicaps are a niche for us as well.
In this position, we take on the administration of the estate immediately after death and conscientiously and efficiently, usually for a fixed fee we process the creation of trust shares, tax filings, distributions, liquidations and accounting necessary to complete the settlement of the estate on behalf of the family. This form of administration is temporary and in preparation for a final distribution to individuals or to trustees who will carry on the permanent job of looking after the beneficiary’s interests. Sometimes those permanent trustees are the beneficiaries themselves, acting as their own trustee. We will help those permanent trustees get established and seek to provide a smooth transfer of administrative authority as quickly as possible.
These are situations we can help you address. To learn more, schedule a call with us today.
Articles by Borchers Trust LawVIEW ALL
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Qualifying for MassHealth Coverage for Long-Term Care: A Case Study
More and more people are living to an older age than any generation previously. As the population begins to age, planning for long nursing home stays is becoming a more relevant topic. MassHealth (also known as Medicaid) is an assistance program offered in the state of Massachusetts to help defray the cost of long-term care […]
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Our Rising Star: Marc Cusano
Our own Marc Cusano, Esq., has been honored as one of Super Lawyers’ “Rising Stars” two years in a row – for both 2017 and 2018. The designation is bestowed by the Super Lawyers subsidiary of Thomson Reuters and recognizes just 2.5% of attorneys — the very best of the best. Super Lawyers selects attorneys […]
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Trusts Go Above and Beyond Wills
You have a will, which can be enough for certain issues, such as providing for minor children or deciding where and how your assets will be disposed of at death. But a will is not necessarily enough if you want to avoid court involvement at death, or if you want to save taxes, or even […]
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Choosing the “Administrative Trustee” Takes the Burden off Your Family at your Death
Administrative Trust involves forms, taxes, accounting & low level details. A professional Administrative Trustee unburdens your family.
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How to Help Your Child Buy a First Home
This article comes timely in my own life as a couple months ago my wife, Ruth, and I decided it was time to help our 27 year old son, Grant, who has been working hard and saving money, get out on his own with a small condominium. Selfishly, I will miss him around home because […]
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How to Keep Your Trust Updated, Part 3
A trust is an important asset for just about any family. But there is a multitude of problems that could undermine your goals. Borchers discusses what to look for when updating your trust – something you should do on a regular basis.
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What Happens to Your Assets When You Die?
Because we don’t like to talk or think about death, we find many people don’t understand what actually needs to happen after a death. Many of us think, “My estate and assets will go to my kids. I’m sure my decades-old will will suffice in making this happen.” Wouldn’t it be nice if it were […]
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Super-TRUST-Powers, Part I | Atomic Manipulation & Shapeshifting
When I was young I could fly. No really, I could. As long as I had a good running start down the hallway I could make a horizontal jump at least 3 or 4 feet into the air and onto my parents’ couch. This was made possible not only by my natural flying abilities (of […]
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Save on Estate Taxes with the Irrevocable Life Insurance Trust
The irrevocable life insurance trust (or “ILIT”), as its name suggests, is irrevocable. It cannot be rescinded, amended, or modified in any way by the “grantor” after its creation. Once the grantor contributes property or a life insurance policy to the trust, he or she cannot get it back. However, the grantor can retain the power to change the trustees and the grantor’s spouse and others can be given power to change beneficiaries.
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Removing and Replacing a Trustee: A Spectrum of Options
Removing and replacing a trustee might seem like no big deal, but it can be serious because of the wide-ranging effects on the trust. Sometimes, for example, the person removing and replacing trustees should be independent of the grantor, i.e. not the grantor herself, her spouse or a person who is related or subordinate to […]
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What Happens to Your Debt when You Die?
When people think about their estate, they tend to think of the assets they will pass on, like their stamp collection, a home or vacation property, and of course, their money. However, it’s important to consider your whole balance sheet – including your debt – when thinking about what you’ll leave behind for your loved ones […]
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Retirement Plan Trusts Headline IRA Forecast
The Supreme Court ruled that inherited individual retirement accounts aren't protected in bankruptcy. The issue now becomes how to protect these plans within a solid estate plan.
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Borchers Trust Law Celebrates 30 Years of Innovation and Care
Two and a half decades in trust management would be enough to celebrate for most firms. In the case of Borchers Trust Law Group, however, age is just a number. “As a firm that focuses primarily on money and time, we have a rare perspective on how to make the most of both,” said founder, Tim Borchers.
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What Legal Documents Do You Need When You Turn 18?
When you're the parent of a college-age student, there are many things on your radar: Rooming assignments, school tuition, and that dreaded trip to Target to outfit your new student who is about to venture off to college or to otherwise begin the next stage of their life.
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A Peek Behind the Curtain: What New Team Members Think
Are you wondering what it is really like at Borchers Law Group? Do these friendly people get along as well as they appear? We thought we’d give a behind-the-curtain look from two of our newest team members, Erika Schaad, Administrative Legal Assistant, and Stephanie Marra, Paralegal. Erika joined the team in April and Stephanie joined […]
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MA Estate Tax in 2019 | Worst Estate Tax or Best at Redistributing Wealth?
At $1 million, Massachusetts is in a dead heat for the lowest estate tax threshold in the country. That means anyone worth more than that at death is contributing to the tax coffers. Depending on your point of view, that’s just life (or death) in the big city, tragic, or possibly progressive. What are estate […]
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Holy Gifting: An Estate Planner’s Dream (… or Nightmare)
Attorneys who practice any level of estate planning are, at this very moment, standing on hallowed ground. Understanding lifetime gift limitations is an ongoing process due to new legislation.
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What the SECURE Act Means for Your Retirement Accounts
On May 23, 2019, the House passed the Setting Every Community Up for Retirement Enhancement (“SECURE”) Act by a vote of 417 to 3, sending it off to the Senate where it is expected to be approved and signed into law by the President. There are notable benefits under the proposed law. For example, the […]
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A CPA and a Role Model: Remembering My Father
“My father is a CPA, and growing up, I worked in his office during high school and college and got to witness him in action with clients. Now, on the other side of things where I was doing a lot of work with him, I’d hear clients praise him on how well he did. I […]
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How to Keep Your Trust Updated, Part 2
Keeping your trust updated is one of the most important things you can do regarding personal finances, your financial goals, and taking care of your family members after you pass. Borchers Trust Law Group provides tips on what to update and why they should be updated and healthy.
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A Unique Look at How We View Our Role
All clients have a story – a present, a past, a family, a fact pattern that no one else has. They have questions that no one else has. There’s always a point where I say, “Wow, no one has ever asked this question before,” or, “No one has presented this situation – this problem – […]
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Protecting Loved Ones with a Special Needs Trust
When a loved one has a unique obstacle to wellness, in the form of an illness, disability, learning disorder, addiction, or mental health issue, estate planning is essential to your legacy of loving and caring. For the millions of Americans* affected – your heirs and mine – we need to design estate plans with the unique needs of the individual with a special need or disability in mind.
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The Protection Plan: Protects from Losses and Saves Taxes
A Protection Plan at Borchers Trust Law is centered around a living trust instrument and includes some pretty cool provisions for your future needs. Beyond the basic documentation that every estate plan should have, namely power of attorney, health care proxy and other health forms, and a last will and testament, and even beyond a Simple Trust agreement, the Protection Plan trust is thorough in anticipating life’s complications.
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Estate Planning After a Divorce
Estate planning for divorced individuals poses a unique set of challenges. In what other circumstance would you find your most cherished assets, your children, in the custody of someone whom you have decided you no longer want to partner with? Whether the divorce is fresh, or simply part of the family history, many of the issues persist.
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Myth Busting: All Trusts Protect Against Long-Term Care Costs
Myth busting isn’t just for blowing things up or smashing objects together. We at Borchers Trust Law have taken on the challenge to bust some common misconceptions related to estate planning. The first myth to bust is that many people believe that ALL trusts, even revocable trusts, protect against long-term care costs.
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Gifting to Children as Part of an Estate Plan
This article uses 2024 Estate and Gift Tax Limits. If you are approaching or not too much over the state or federal estate taxFederal Estate Tax: The federal estate is part of a unified federal gift and estate tax that is an excise on the transfer of wealth. Read More limit in total assets, gifting […]
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Super-TRUST-Powers, Part IV | Super Speed
Experience the rush of accelerating to speeds so fast you are nothing but a blur. Move near, at, or beyond the speed of sound or light. Change diapers in record time, run to the Cape and back for a lobster roll during your lunch hour, or discreetly make a cameo appearance in the middle of […]
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A Personal Story: Attorney Deb Hedges Shares How Her Estate Plan Gave Her Peace of Mind After Losing Her Husband
After losing her young husband to a 5 year battle with cancer, Attorney Deb Hedges thought that she would never practice estate planning law again. It just hit too close to home. Losing a spouse at 42 was life changing, not just personally but professionally.
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Super-TRUST-Powers, Part II | Invincibility
Possessing immunity to any form of physical harm. Impenetrable. Unable to be broken or suffer pain. With the power of invincibility, you could literally take a bullet for your spouse, shovel 16 inches of snow from your driveway without back pain, or proudly wear a Yankees jersey to Fenway Park (I am NOT, of course, […]
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Your Life and Estate Laws Are Always Evolving. Has Your Plan Kept Up?
Estate plans are not intended to be a one-and-done project. They are living documents that should reflect your current situation, needs, and goals. That can only be achieved via regular reviews, and Borchers Law makes it easy to accomplish that via several customized estate plan services: Update Checklists TrustSupport™ ILIT Service Estate Plan Update Checklists […]
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Myth Busting: No Planning Needed – My Spouse Will Get Everything
If you’re married, you likely own some property or bank accounts jointly with your spouse. When one spouse dies, the surviving spouse automatically becomes the sole owner. In most cases, this structure is utilized to provide a convenient and easy way for the survivor to have continued access to funds. Easy access? Yes. Protection? No!
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Retirement Plan Trusts: What Are They and How Do They Work?
Retirement plan trustsA trust, usually revocable during the life of the Grantor, that acts as a beneficiary of a retirement account such as a traditional IRA, a Roth IRA, 401(k), 403(b), 457 plan and so forth. Read More (RPTs) are standalone, revocable trust arrangements whereby the retirement accounts (traditional and Roth IRAs, 401(k), 403(b), and other “qualified” plans) received by a beneficiary are administered for the lifetime of the beneficiary. In general, the beneficiary himself or herself is allowed to be the trustee.
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When Tragedy Strikes a Young Family: A Living Trust Case Study
We are pleased when we can help a young family develop an estate plan that fits their needs and honors their wishes. Many couples have good intentions to plan for the unexpected…then the busyness of family life interferes. Parents are stretched thin and planning is put off to another day. But the vigilant press on, […]
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Coming to Agreement on a Shared Home
If you are considering gifting a second home to your children in equal shares, take heed. This generous offer can be riddled with complexities that you may not have considered.
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Take Action Now in Preparation for Proposed Tax Reforms
Update: Now that the 2017 Tax Cuts and Jobs Act has become law, we’ve expanded upon the of Estate and Gift Tax laws for 2018 here. Congress is poised to enact a major tax law overhaul that could make fundamental changes to the way you calculate your federal income tax bill and the amount of federal […]
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Understanding the Role of the Trustee: A Spectrum of Choices
Many family trusts can be handled with family members in the role of a trustee, but alternatives to “Uncle Joe” serving as a trustee should often be explored, including using professional or institutional trustees. This article explores the role of the trustee, the merits of various arrangements and combinations of trustees, and their removal and […]
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Helping Seniors Get their Estate Planning Affairs in Order
Your parents may be in their 70s or 80s, and like many in their generation, have the ethos that personal information – especially anything having to do with money or estate planning – is private … as it should be. They also believe whether Johnny and Janey are getting anything in the estate is their […]
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Seven Life Events That Can Undermine Your Trust
Your trust is designed to protect your family and ensure that your financial goals are achieved when you pass away. But those goals can only be achieved if your trust is continually updated to reflect any significant changes in your life. These changes might include the following: A Change in Your Health In the event […]
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A Retirement Plan Trust Can Protect Against Debt and More
Trying to predict how the Supreme Court will rule in a given matter is like trying to predict New England weather; you never know what you’re going to get, and what you get, you don’t always understand. On June 12, 2014, in Clark, et ux v. Rameker, 573 U.S. __ (2014) the high court unanimously […]
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The Dangers of an Unfunded Trust: A Case Study
A pitfall for some families is having an unfunded trust. The Borchers Trust team walks you though what funding a trust means and how to fund your trust.
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How Estate Plans Are Impacted by the SECURE Act
Significant legislation concerning the treatment of retirement accounts called the SECURE ActThe Setting Every Community Up for Retirement Enhancement Act of 2019, known as the SECURE Act, became law on December 20, 2019. The Act impacts retirement savings rules and taxes for workers and retirees. Read More became law on January 1, 2020. Among other effects, this eliminates the lifetime stretch for inherited IRAs. In this article, I will discuss the issues and adjustments many clients will need to make in their trust planning, the tax implications, and the financial strategies to cope with this change.
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Introducing a MA Bill Which Would Raise the Estate Tax Exemption
On January 16th, I sat down with Massachusetts State Rep., Shawn Dooley, to talk about the commonwealth’s estate tax reform and his innovative bill. Dooley is the lead sponsor of a bill (H.2446) to raise the Mass.
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Every Successful Estate Plan Needs a Collaborative Team
As estate planning attorneys, the single best way to serve each of our clients is by participating as one part of a larger estate planning team. To collaborate most effectively, and help our clients succeed, we all need to leave our egos at the door, be absolutely committed to next level communication, and make our client, along with their often-heartfelt objectives and their comprehensive personal financial plan, our center points.
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How to Make Sure Your Children Don’t Lose Their Inheritance: Why the Inheritance Trust™ Is a Win-Win for Everyone
With increasing rates of life expectancy, multiple marriages and the ability to survive disabilities and injuries, the need to protect what we hand down to our heirs also increases. The best way to address these challenges is by implementing an estate plan that includes a lifelong trust for each child.
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What Is a Trust?
A story that I like to tell to help explain what a trust is involves my family. I have three young girls ranging in ages from eight to two. We have a routine on Friday nights where we get together, make popcorn and watch a movie. My two year old is at the stage where […]
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The Differences Between A Revocable & Irrevocable Trust
As background, all of our trusts, whether revocable or irrevocable trust, in one way or the other help to cover the following points, illustrated by the acronym MAPS. This stands for: Manage your affairs in your old age or illness Avoid probateProbate can refer to the process of settling the estate of a deceased person. […]
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Like-Kind Exchanges: Defer Capital Gains Taxes on Real Estate
Raise your hand if you want to avoid paying capital gains taxes for as long as possible. The good news is that you can, if you have a property that you plan to sell and have eyed property that you would like to quickly turn around and buy. In a “like-kind” exchange, the seller (“exchanger”) […]
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A Charitable Lead Trust Benefits Charities & Families
Here’s an idea for giving your resources for social impact today, and follow it up with a gift to your family. Let me illustrate this strategy by thinking of a plan for client who is interested in giving to grandchildren, but is willing to delay that gratification a bit (I see a lesson in self-control […]
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Considering a Move to New Hampshire? Key Financial Benefits for Mass. Residents
As a Massachusetts resident, you may be considering the financial benefits of moving to New Hampshire—like lower taxes, more affordable housing, and the absence of an estate tax. Both of our partners, Tim Borchers and Marc Cusano, have homes and are licensed to practice in both states, so we know firsthand how appealing these advantages […]
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Here’s Why It’s a Good Idea to Put Your Heirs in Charge of Their Own Trusts
Suppose your daughter inherits from you through an Inheritance TrustA trust created after the death of the Grantor for the benefit and protection of the inheritor (or created to receive lifetime gifts and inheritance from the Grantor). Read More, and she wishes to pay off her mortgage with the trust funds. As her own trustee, she’d have the authority to do that without even having to weigh the idea against the the terms of the trust.
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Thinking of Moving to Florida? Avoid Traps for the Unwary.
Every year a dozen clients (or more) talk to us about their decision to make Florida their primary residence, or on the other hand, about coming back to the northeast after they’ve resided in Florida.
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Charitable Trusts: A Win-Win for Everyone
Would you like to make a large gift to a cause you believe in but need encouragement to make it happen? You don’t need a motivational pep talk to get you there; you just need the US Tax Code! (You didn’t think we’d say that, right!?) The Tax Code offers something called the “Charitable Trust”, […]
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What Taxes Should Be Filed After a Death?
We all know Benjamin Franklin’s famous quote, “In this world, nothing can be said to be certain, except death and taxes.” This 18th century mantra holds true today. We all face these two certainties in our lifetime. But the reality is, even after your death, taxes endure. If you’re unsure of any of the terminology […]
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Having a Baby: Top Five Legal Matters to Consider
When preparing for the birth of my oldest daughter, there were many aspects of the process I was wholly unprepared for. Actually, I was unprepared for just about all of it! However, when they skipped to the part about making sure things were in place legally prior to the delivery of the baby, my posture straightened and an aura of confidence overtook me. Finally they were speaking my language!
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Follow These Three Steps to Give to Charity
How do you decide what to give to charity, when, and on what conditions? Here’s a three-step checklist to help decide what elements of your estate to give to charity and how to do so:
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Enhanced Planning Goes Above and Beyond
Most clients’ families will benefit from our service as an Administrative Trustee; HNW and UHNW clients will benefit from the services of an independent trusteeSpecifically in relation to the trust Grantor, the IRS effectively defines the term for what it is not: a person who is not a related or subordinate party. Read More to protect assetsThis general term refers, logically, to protecting assets from claims against trust beneficiaries. Read More against the Killer DsThese are the risks to beneficiaries’ inheritance: Debt, Divorce, Disability, Destructive Habits, Death, Disputes. (Timothy Borchers, Esq. coined the term in 2010.). We mostly serve as independent trusteesSpecifically in relation to the trust Grantor, the IRS effectively defines the term for what it is not: a person who is not a related or subordinate party. Read More through our trustee company, which provides objectivity when applying the principles of your legacy. Family members don’t intend to jeopardize assets, but by nature they do because of their conflicts of interest, and because they are considered “interested parties” under the tax code.
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From Super Lawyer to Super Dad: Tim Borchers Receives Two Special Awards
We are thrilled to announce that our founder, Tim Borchers, has been recognized with the prestigious Super Lawyers award for 2024 in the field of trusts and estates. This distinction is particularly meaningful as it is awarded based on peer nominations and a rigorous selection process. The Super Lawyers award is reserved for attorneys who […]
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Trust Protectors: Rescuers for Irrevocable Trusts
“Gotham is in danger!” cries the Commissioner. “Call for …The Protector!” That’s not exactly how it works, but there is a sense in which the Trust Protector does come to the rescue in certain cases. The Trust Protector’s purpose is to guide the trustee to make the right decisions and make sure the grantor’s intentions are carried out. Not high drama, but pretty important nonetheless.
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The Better Way to Give: 12 Reasons To Use a Gift Trust
This article uses 2024 gift and tax limits. If you would like to make gifts to your children, siblings, or parents, the knee jerk approach is to make a direct gift. It’s easy and straightforward. But before you do this, consider giving using a trust instead. Here are the 12 reasons for using a gift […]
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The Irrevocable Trust: The Antidote to Nursing Home Spend-Down
You don’t need us to tell you that nursing home care is expensive. And we understand that you want to avoid paying these costs out of your own savings if possible. One approach is the irrevocable trust. The LAST Trust is our name for an irrevocable trust that protects estates against nursing home spend-down. It stands […]
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The Family Health Trust | Supporting Parents Without Financial Complications
There are times when a parent or other family member has a need and has children with resources that could be used to assist, but an outright gift or transfer is not a suitable solution for one reason or another
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Take Action Now: High Estate & Gift Tax Exemptions Could Vanish in 2021
As with any election, there is the potential for significant impact on estate and gift taxes. Under the Tax Cuts and Jobs Act of 2017, the federal exemption from gift and estate tax rose to $11.58 million per person with a tax rate of 40% on the value of assets above that limit. This means that under current law, married couples can leave a $23.16 million inheritance to their children, tax free. However, like all good tax stories, this one does not have a happy ending.
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Is It Ever Too Early to Get an Estate Plan?
Marc Cusano: Tim, I was recently asked by a woman who’s approaching age 40, “Is this a good time for me to get an estate plan?” And I think my initial reaction and response was, “Well, yeah. I mean, we really believe in estate planning for all stages of life.” But I’m curious as to […]
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Myth Busting: A Will Avoids Probate
Many people believe that once they have created a will—whether drafted by an experienced attorney, or using a DIY solution or online form—they will have avoided probateProbate can refer to the process of settling the estate of a deceased person. Read More. Unfortunately, they are wrong. This estate planning myth is in desperate need of busting. A will guarantees probateProbate can refer to the process of settling the estate of a deceased person. Read More!
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A Checklist for Your Will and Other Estate Planning Basics
You probably know that it’s a good idea to plan your estate, even though it might not be a top priority for the use of your free time. Your intention is to get to it at some point, but you have been hesitating. Perhaps you think you are too young, or you may mistakenly believe that you don’t own enough assets to require estate planning. In reality, creating a will is an essential step and should be a priority to protect your family and help express your legacy.
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Tim Borchers: Looking Out for Clients’ Wellbeing
“I come from a family of pastors, teachers and scientists,” says Tim Borchers, founder of Borchers Trust Law. “To me, that’s an interesting mix, because on the one hand, I’m technically oriented by nature, as well as compassionate and looking out for the wellbeing of my clients. I have adopted the term ‘coaching’ for what […]
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Selecting a Trustee: A Spectrum of Possible Arrangements
There are many factors that bear on the choice of trustee. The purpose of the trust; its duration; the ages, health, and circumstances of the beneficiaries; and the types of assets to be administered all have bearing on the choice. You could name Uncle Joe as trustee, but business and real estate assets may be […]
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Will Your Kids Hate You for Leaving Them the Vacation House?
You know your kids love you. You know they love the vacation house they’ve enjoyed every summer since childhood. And you’re sure they’ll love the idea of inheriting that home when you pass away. But what if you’re wrong? What if they can’t afford the taxes and maintenance? What if their spouse(s) already have access […]
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The Essential Documents Your Aging Loved Ones Need
The best time to get involved in your aging parents’ affairs is early on, long before your loved ones are in ill health or their affairs are in trouble. Start with a simple inquiry. Ask when their estate plan was last reviewed and updated. If they have not seen an estate planning attorney in the […]
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Introducing the super-TRUST-powers eBook
The summer is time for sunglasses, the beach, ice cream, and of course, superhero blockbusters. And it’s not a bad time to get your financial planning and estate planning in order, either. We’ve compiled our super-TRUST-powers series of articles into an omnibus eBook to make things more convenient — or to supply you with some […]
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NEADS Service Dogs Benefit from a Milton Couple’s Estate
Tim witnessed giving in a new way this year. He was entrusted to decide how to give away an entire estate to charity; this was his mission as trustee. What a joyful experience he found this to be! Over the years, Tim developed a close relationship with his clients from Milton, Joe and Fran McKeen. […]
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Irrevocable Trusts and Divorce: Massachusetts Ruling Raises Concern for Inheritances
A 2023 Massachusetts appellate court case, Jones v. Jones, casts doubt on the ability of irrevocable trustsA trust that cannot be revoked by the Grantor. Irrevocable trustsA trust that cannot be revoked by the Grantor. Irrevocable trusts are created to either save taxes or protect assets, or both. More are created to either save taxes or protect assetsThis general term refers, logically, to protecting assets from claims against trust beneficiaries. Read More, or both. More to shield assets from division in divorce. The latest in a string of rulings, the court […]
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Borchers Trust Law returns to Medfield after 17 years
Borchers Trust Law announces a return to Medfield, where the firm was founded almost 30 years ago by Attorney Tim Borchers. The firm’s new offices will be at 266 Main Street, known as Olde Medfield Square. This homecoming marks an important step for this greater Boston area firm focused on creating innovative estate planning solutions that are presented in a clear and understandable way.
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Is Charitable Planning Practical?
Many people think that charitable planning or trying to become more philanthropic is not something that’s practical or realistic for the average family or individual. Obviously, it seems like it’s something just for the rich and famous, the Bill and Melinda Gates of our society. That couldn’t be more incorrect. What we help families and […]
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Irrevocable Trusts: What Are They and How Are They Used?
“Why would anyone want an irrevocable trust?” It’s a common question we get. “You can’t take back what you put in!? You can’t have absolute control!? You can’t own what’s in the trust!? Geesh!” But that’s exactly the point; irrevocable trusts’ main purpose is to separate people from their assets. This creates a distance that tax and property laws respect, and that earns points if you’re trying to protect your assets or save on taxes. Trusts are irrevocable if you put assets in that you cannot remove carte blanche.
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You Have Power of Attorney. Now What?
If you’ve been assigned the role of power of attorney, this information we’ve gathered will help you understand your responsibilities and the terminology involved. First, the basics: What are you signed up for? A power of attorney gives you the authority to legally act on behalf of someone else, who is known as the principal. […]
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What Roles Need to Be Filled After a Death?
There are many roles that need to be filled when settling an estate. Here are the key roles and their responsibilities that need to be filled after a death. If you’re unsure of any of the terminology used in this article, please refer to our After a Death Glossary. Who is in charge of this process? […]
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Tim Talks Second Homes
Last month, Twelve Points Wealth Management’s Chris Cahill and I spoke about Heirloom Properties with Harry Margolis on the Ask Harry Podcast. Chris and I co-created Second Home Savvy to help families understand how to protect their second home for the next generation.
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Estate Planning for Children with Special Needs
I have a son with autism. He’s in his 20s and he’s very capable. But as a young child, we had no clue what his level of capability was going to be, and that’s where parents are all the time: What is it going to mean for my special needs child when I die and […]
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Ten Warning Signs that Your Estate Plan Needs Help
How do you know if you need to update your estate plan? It isn’t like your smoke detector that mercilessly beeps, warning you that you could be in danger if you don’t replace its batteries. But what are the warning signs of an outdated, incomplete, or ineffective estate plan? Here are 10 indicators that let you […]
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Provisions for an Heirloom Agreement: The Exit Strategy
Planning is important when you wish to pass down a vacation home to your heirs. An heirloom agreement is a binding agreement that provides the rules for how co-owners will use, share, maintain, and ultimately dissolve the joint ownership of the home.
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Estate and Gift Taxes Under the New 2018 Tax Law
In December, I published this blog post outlining specific steps that could be taken before the end of 2017 in light of proposed tax changes. Since then, the proposed tax code has become law and there are further updates for the 2018 tax law. The 2017 Tax Cuts and Jobs Act, which became law January 1st, […]
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Provisions for an Heirloom Agreement: Vacation Property Use & Maintenance
Jointly owned vacation homes can either be a great source of joy or headaches, depending on how well the property — and, just as important, the expectations of the owners — are managed. This post will discuss how a little pre-planning with a co-ownership agreement can go a long way to avoid discontent among the owners.
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How to Keep Your Trust Updated, Part 1
While many may see their trust as a "set it and forget it" proposition, this isn't the case. Trusts should be updated on a regular basis.
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You’re a Guardian. Now What?
When someone lacks, or loses, the ability to make medical decisions for themselves, and they did not sign a healthcare proxy before they lost that ability, a guardianship will be necessary.
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Joint vs. Separate Trusts: Key Differences, Benefits, and Estate Planning Tips for Married Couples
When it comes to estate planning, married couples often face a decision: should they combine their assets into a single joint trust, or should each spouse create a separate trust? This choice is fundamental to the structure of their estate plan and can impact everything from tax planning to how assets are managed and distributed. […]
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Five Possible Vacation Home Solutions for Your Estate
Perhaps 20% of our clients have a second home. In some cases, it’s a true vacation spot; in other cases, it doubles as an investment property or part-time Airbnb™. Either way, it may be desirable to leave the home to family members to keep for their use or for income. If so, it’s an “heirloom […]
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Helping Seniors Get Comfortable About Their Estate Planning
No matter how good of a relationship you have with your aging parents, estate planning is a sensitive subject. Approach with care. Here’s some tips for transitioning your loved ones into conversations about their estate planning. If they do not initially welcome your involvement, try to make it clear that your interest is in being […]
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Super-TRUST-Powers, Part V | Teleportation
If you possessed the power of teleportation, where would you go? Would you teleport yourself to work to bypass a stressful daily commute? Or move yourself upstairs at night after you’ve fallen asleep on the couch? You could play catch with yourself, or even transport onto the football field to intercept a pass from Tom […]
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Why Should I Seek Out a Trust Specialist?
Growing up in an Italian neighborhood, everyone around me had "a guy." If you asked your friend about a roofer he would reply, "I got a guy." If your hair wasn't greased enough, your friend would say, "You should go see my guy, he'll fix you up." Even the kids would fight over their action figures and say, "Hey...that's MY guy!”
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What Are the 8 Risks of DIY Estate Planning?
You’re resourceful and capable, so why should you think twice before setting up a DIY estate plan? Here are 8 reasons why an online DIY estate plan is risky.
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The 3 Reasons to Use a Nominee Trust in Massachusetts
When holding title to any asset on behalf of multiple trusts or entities, having a nominee or agent on behalf of the entities can be more convenient. The nominee trust is a tool that meets this need. For example, when husband and wife each have their own trust, but they want to continue having joint accounts for convenience and simplicity, they can put their joint bank accounts and investment accounts under the nominee trust.
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How Often Should I Update My Estate Plan?
We believe it makes good sense to review and update your estate plan and any accompanying documents every three to five years, approximately. Reason being, you just don’t know –unless this is a field that you’re an expert in, or what laws may have changed that impact your documents specifically. From our perspective and […]
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Myth Busting: Only the Ultra Rich Need Estate Planning
Everyone needs estate planning. We ask, “How do you want to be remembered?” You do not want the last thing your family, heirs, or charities to remember is the mess you left, the arguments, the delays, the expense, and the taxes. You owe it to them to plan and to keep the plan fresh. Then, you will be remembered. Positively.
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Who Will Take Care of the Kids?
“If something bad happened to me, or I suddenly passed away, who would take care of my children?” It’s not a pleasant thought, but if you’re a parent, it’s highly likely that you’ve asked yourself this question numerous times. Appointing a legal guardian for your kids is a weighty decision -- but it’s a decision that must be made, nonetheless.
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The Challenge of Discussing Financial Plans with Your Aging Loved Ones
Your parents – or other aging loved ones – are over 70 and you are genuinely concerned whether they have a plan for their later years and for their estate. However, they may resent a direct question about their plans. This article will explain why and how to best approach them. The Challenge It is […]
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Last Minute Elder Law Strategies: Qualifying for MassHealth
The most frequently asked question for an elder law attorney is “How can I qualify for MassHealth to pay for nursing home expenses?” The answer depends on how much time you have to prepare.
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Be Prepared for Senior Living with These Ten Pointers
Are you thinking about making a move to a senior living community, but don’t know how to start your research? Here are 10 pointers to consider: 1. Understand the kind of community and benefits you are looking forward to. The typical options are: Over-55 (active adults) Independent living Assisted living Continuing care community housing 2. […]
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Provisions for an Heirloom Agreement: Ownership Privileges & Restrictions
Co-ownership of an heirloom property can be daunting, with disagreements ranging from whether to allow clotheslines to who is responsible for opening and closing each year. But legacy home partnerships can succeed with a little planning.
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Spousal Lifetime Access Trusts: A Tax Saving and Asset Protection Measure
If your estate planning goals include saving estate taxes and seriously protecting assets, chances are you will need to consider one or more irrevocable trustsA trust that cannot be revoked by the Grantor. Irrevocable trusts are created to either save taxes or protect assets, or both. More in your estate plan. The spousal lifetime access trustThis irrevocable trust represents a gift usually to the spouse and heirs of the Grantor. Read More (SLAT) is a prime example of a trust that will accomplish both of these goals.
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Trusts that Avoid State Income Tax
One of the advantages of using trusts in your estate plan is tax mitigation. While trusts are well-known to help reduce estate taxes, they are also becoming increasingly more common for income tax savings. Can you avoid state income tax with a trust? Yes you can. Make Use of ING trusts Clients are using tax […]
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How Inflation Impacts Estate Planning: 4 Ways to Protect Your Family’s Future
While we see glimpses of hope that inflation is easing, the high cost of living (COL) has many re-evaluating their financial strategies. Inflated costs for essentials such as housing, food, and healthcare mean that our money simply doesn’t go as far as it used to. For estate planning, this has significant implications. Many are increasingly […]
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Do you need an estate plan as a single parent?
Estate planning is something that should be a priority for everyone, not just for wealthy families or those with large families. A well thought out estate plan is also crucial for single individuals, especially single parents. The plan helps protect both the parent and their children’s future by preventing family disputes, and unnecessary financial burdens […]
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8 Symptoms of an Impending Failure of Your Trust or Estate Plan
Just like most things in life, your trust or estate plan needs a regular checkup. Giving your plan the attention it needs on a recurring basis will not only keep it up to date with your own goals and new laws, but will also bring peace of mind. If this has left you worried and […]
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Planning to Protect Property from Nursing Home Costs
A major question in planning for seniors today is, “How can I protect my property from nursing home costs?” Statistically, the chance that a senior will enter a skilled nursing facility, i.e. a nursing home, is reportedly 1 in 3 (via The American Elder Care Research Organization). What are the costs associated with such care? A […]
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10 Essentials for a Comprehensive Estate Plan
While it’s nearly impossible to plan for every one of life's contingencies, it is possible to create an effective and comprehensive estate plan. While good estate planning anticipates your death and disability, great estate planning reflects your chosen legacy.
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Testamentary Trusts | How a Frail Spouse Can Protect Assets for Loved Ones
What can be done to protect assetsThis general term refers, logically, to protecting assets from claims against trust beneficiaries. Read More when a spouse’s health is failing and thinks he or she may die before their spouse–who has long-term health issues–dies? While the circumstances are sad, they do present an opportunity for planning in the […]
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Super-TRUST-Powers, Part III | Healing
Restore biotic organisms to their optimal health, curing wounds, broken bones, or disease. Potentially heal from any form of bodily damage. The power to heal is an attractive power in our day. Imagine being in the position to instantaneously cure yourself of the flu, heart disease, or better yet any, form of cancer – including […]
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When to Consult an Elder Law Attorney
A good time to consider consulting with an elder law attorney is when you begin to see some signs of deterioration with your parents, whether it’s an illness or even just a change in their mental ability. When they reach their retirement years, age 60 and above, you may start to see more signs that […]
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Purchasing an Annuity: A Strategy for the Healthy Spouse, While the Other Is in a Nursing Home
Long-term nursing home care is needed by about 1.4 million Americans every year, according to the Center for Medicare and Medicaid Services (2015). It is expensive, and so is long-term care insurance. Government programs, such as Medicare, will not cover the cost of nursing home care. Note: Social Security benefits pay only an average of […]
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You Need a Health Care Proxy. Now What?
A health care proxy, or medical power of attorney, is a legal document that gives someone else, known as the health care agent, the power to make medical decisions on your behalf during any time that you are incapacitated. Who should have a health care proxy? If you are a competent adult 18 years of […]
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Glossary: After a Death
Please use this glossary to better understand our “After a Death” series, which explains what happens to your assets and estate upon your passing. Assets: Can describe anything the decedent owns, including cash, bank accounts, cars, real estate, collectibles, etc. Beneficiary: The persons, trust or entity designated to receive an asset or death beneficiary after […]
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Acadia National Park Receives Philanthropic Gift
“Forge your own future.” Wise words from a Norfolk school teacher who lived this out by investing in her community, her students, and now in future generations who visit a favorite New England destination, Acadia National Park.
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A Personal Story: How Senior Paralegal Stephanie Helped Her Aging Parents Consolidate Their Financial Accounts With These 6 Questions
Just like cleaning a closet helps you feel more organized, consolidating financial accounts keeps your estate plan tidy. Believe us…you don’t want a rogue account to send your entire estate to probateProbate can refer to the process of settling the estate of a deceased person. Read More. Here are the 6 questions to determine if you have too many accounts.
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6 Reasons to Administer Trusts in New Hampshire
We are committed to offering our clients the most effective and advantageous estate planning solutions. That’s why we established a branch in Concord, New Hampshire. This locale provides access to New Hampshire’s trust laws, which are among the most favorable in the country, particularly for irrevocable trustsA trust that cannot be revoked by the Grantor. […]
