Estate planning is a cornerstone of elder care law, allowing seniors the ability to guard their assets after they pass away and ensure their wishes are carried out. It is essential for individuals to understand the importance of estate planning and the various legal instruments that make up a comprehensive estate plan.
A key component of estate planning is creating a legal will. A will lays out how a person’s assets will be distributed among their beneficiaries after their death. Without a will, the distribution of assets is subject to state laws (called intestacy laws), which may not align with the individual’s preferences. In the state of Massachusetts, specific requirements are important to lay out in one’s will and/or trust to help achieve an individual’s desired wishes. An elder care attorney can help seniors draft a clear and concise will that reflects their wishes and avoids potential disputes among heirs.
Another essential tool in estate planning is the use of trusts. Trusts are legal entities that manage and hold assets on behalf of beneficiaries. There are many advantages of trusts, but one of the main advantages is that they can avoid probate and the legal process of validating a will, which can be time-consuming and costly. By placing assets in a trust, seniors can ensure a smoother transfer of assets to their loved ones upon their passing.
Powers of Attorney (POA) and Advance Healthcare Directives (AHCD) are crucial components of estate planning that address potential incapacity. A financial POA allows seniors to designate someone they trust to manage their financial affairs if they become unable to do so themselves. Similarly, an AHCD, also known as a living will, allows seniors to outline their medical preferences and designate a healthcare proxy to make medical decisions on their behalf when they are unable to do so.
