Estate Planning

[nun]

So goal one of being FIREd is achieved and I'm all set while I'm alive. But now I'm thinking of inheritances and how to organize my estate which is a few million (still less than $5M) with the biggest single asset being a $1M mortgage free home. I live in MA, I'm divorced in my mid 50s and have no children so haven't really worried much about this stuff.



I have named my nieces, and a couple of charities as beneficiaries on all my retirement accounts and have a DIY will that distributes the rest of the estate and a list of all my assets that my executors know about. But I think it's probably best to put the house in trust to avoid probate.



So does anyone have any advice about this. Can I DIY the trust and transfer deed in MA? Right now I'm below the federal inheritance tax limits but above the MA inheritance tax threshold. Do you have recommendations for estate planning professionals in MA?


Sent from my iPhone using Early Retirement Forum

[MarieIG]

Don't know anything about MA. While there is a lot you can DIY, you can also leave your heirs a mess as there are pitfalls that you won't spot in advance, that a knowledgeable estate attorney would.

You can get recommendations, and then make some calls to get an idea of the services provided.

[SecondCor521]

If I were in your shoes I would check to see if MA has some sort of TOD on real estate.

[gretah]

I found these books (and an article) to be the most helpful ones for retirement and estate planning.

Plan Your Estate
by Denis Clifford for Nolo Press
Great overview of all aspects of retirement and estate planning except how to anticipate and pay for medical expenses. Includes Wills, Powers of Attorney, Trusts, ways to avoid probate, and more. Terrific book to read before speaking to an estate planning attorney and insurance brokers.

8 Ways to Avoid Probate
by Mary Randolph for Nolo Press
Tools like Transfer on Death for real estate and vehicles, Payment on Death for bank accounts, and Trusts can be used to move parts of your estate into the possession of your heirs without the delay of probating your will. Avoiding probate is not a scheme to avoid taxes. This book expands on the information in the Plan Your Estate book.

Living Trusts for Everyone:
Why a Will is Not the Way to Avoid Probate, Protect Heirs, and Settle Estates
by Ron Sharp

Long-term Care: How to Plan and Pay for it
by JL Matthews for Nolo Press


Article
Planning for Health Care Costs in Retirement
Online article published by Vanguard. Very thorough.
https://personal.vanguard.com/pdf/ISGPLHC.pdf

[DrRoy]

Quote:

Originally Posted by nun But I think it's probably best to put the house in trust to avoid probate.

Put all of your non-IRA assets in a trust. Why tie up any of it?

[joeea]

Quote:

Originally Posted by nun But I think it's probably best to put the house in trust to avoid probate.

Why do you feel the need to avoid probate?

Quote:

So does anyone have any advice about this. Can I DIY the trust and transfer deed in MA?

You have millions in assets and you want to DIY your estate planning?

Spend a few bucks and do it right. Find a good estate lawyer.

[nun]

Quote:

Originally Posted by joeea Why do you feel the need to avoid probate?

Just to avoid fees and have the house pass quickly to my heirs

Quote:

You have millions in assets and you want to DIY your estate planning? Spend a few bucks and do it right. Find a good estate lawyer.

I will probably use a lawyer for this, but I want to understand as much as I can about the process and the things I need.

[nun]

Quote:

Originally Posted by gretah I found these books (and an article) to be the most helpful ones for retirement and estate planning. Plan Your Estate by Denis Clifford for Nolo Press Great overview of all aspects of retirement and estate planning except how to anticipate and pay for medical expenses. Includes Wills, Powers of Attorney, Trusts, ways to avoid probate, and more. Terrific book to read before speaking to an estate planning attorney and insurance brokers. 8 Ways to Avoid Probate by Mary Randolph for Nolo Press Tools like Transfer on Death for real estate and vehicles, Payment on Death for bank accounts, and Trusts can be used to move parts of your estate into the possession of your heirs without the delay of probating your will. Avoiding probate is not a scheme to avoid taxes. This book expands on the information in the Plan Your Estate book. Living Trusts for Everyone: Why a Will is Not the Way to Avoid Probate, Protect Heirs, and Settle Estates by Ron Sharp Long-term Care: How to Plan and Pay for it by JL Matthews for Nolo Press Article Planning for Health Care Costs in Retirement Online article published by Vanguard. Very thorough. https://personal.vanguard.com/pdf/ISGPLHC.pdf

Thanks I'll check those out. I want to make sure the house and non-retirement money passes easily to my heirs with minimal paperwork for them as the live in the UK.

Long term care is set as I bought a policy about 20 years ago...I'm paying $28/month for a benefit of $300/day with a $350k cap. I'm lucky to have been a state worker and have a good health plan in place through the state.

[CaliKid]

Remember trusts benefit you directly when you become incapacitated as banks don't honor powers of attorney unless they are specifically on their bank forms. Thus a living trust is imperative to make it easy for a trusted person to take over your financial affairs while you are alive but become incapacitated. Definitely meet with an experienced estate planning attorney.

[sengsational]

You could always DIY, then buy and hour or two of time from an attorney that's amenable to such an arrangement. Maybe DIY the trust and get the assets titled over (the expensive, time consuming stuff), then dangle the pour over will (for $200 or so) as a carrot to reviewing the trust docs after you think you've got them all in order.

[googily]

Quote:

Originally Posted by CaliKid Remember trusts benefit you directly when you become incapacitated as banks don't honor powers of attorney unless they are specifically on their bank forms. Thus a living trust is imperative to make it easy for a trusted person to take over your financial affairs while you are alive but become incapacitated. Definitely meet with an experienced estate planning attorney.

This. As a widow with no children, I have my house and one of my brokerage accounts owned by my trust, so that if I am incapacitated my trustee has easy access to funds for my care. Other accounts and things are handled with TODs, but not only did I want the house's value to be available for my care, I wanted additional liquid funds so that the house doesn't have to be sold at fire-sale prices just to get the dough.

[lem1955]

This is one area I will not DIY. What about long term care? How would you feel about half (or all!) that nut being spent to keep you comfortable for 10 years in an incapacitated state? Estate and medicaid planning is a highly complex area that is worth spending $4 -5K on in order to protect those hard earned assets for loved ones and causes you believe in.


Ah, I see you have long term care insurance. Maybe, less need then.

[gretah]

Quote:

Originally Posted by nun I will probably use a lawyer for this, but I want to understand as much as I can about the process and the things I need.

I completely agree with you. That's why I've been studying books and reading forums, too.

[gayl]

An attorney did my folks but after settling it I learned what "not to do." So I (1) put house into trust (2) POD / TOD on all bank & investment accounts (3) keeping everything else under small estate limit in California. .... that would be traceable under 150k. TOD / POD has 2 primary benificiaries (DS + DD) and 6 others (grandkids with DS as custodian as his are youngest) all with %s listed at Schwab. Trust has only 2 beneficiaries (DS + DD). They can argue - or not - over household furnishings. We didn't when mom passed

A bigger concern was instructions if / when I became unable to make my own decisions

[CaliKid]

Quote:

Originally Posted by sengsational You could always DIY, then buy and hour or two of time from an attorney that's amenable to such an arrangement. Maybe DIY the trust and get the assets titled over (the expensive, time consuming stuff), then dangle the pour over will (for $200 or so) as a carrot to reviewing the trust docs after you think you've got them all in order.

I would caution against this approach as, in my opinion, any attorney willing to get involved with such a small matter for so little money (but big risk) probably does not have much experience and/or is a general practitioner. In either case they wouldn't really know what to look for.

[Dash man]

Quote:

Originally Posted by CaliKid I would caution against this approach as, in my opinion, any attorney willing to get involved with such a small matter for so little money (but big risk) probably does not have much experience and/or is a general practitioner. In either case they wouldn't really know what to look for.

+1000
Too many “gotchas” in estate planning.
Most people don’t know what they don’t know.

[OldShooter]

Would you read books and consult SGOTI in preparation for removing your own appendix? Spend a few tenths of a percent of the value of your estate and get it right.