Understanding Estate Planning Documents in Massachusetts

Estate planning is about more than just deciding who inherits your property. It’s about making sure your wishes are carried out, your family is protected, and your financial and medical decisions are handled the way you want. In Massachusetts, several key documents work together to form a solid estate plan. Here’s a breakdown of what each one does:

Last Will and Testament

A Will is the foundation of most estate plans.

• It allows you to name beneficiaries who will inherit your assets after your death.

• You can appoint a Personal Representative (sometimes called an Executor) to carry out your instructions.

• If you have minor children, you can name a guardian to care for them if something happens to you.

• In Massachusetts, even with a Will, your estate may go through probate court, which is the legal process of validating the Will and distributing your assets. A Will does not avoid probate, but it gives the court clear instructions to follow.

Health Care Proxy

A Health Care Proxy is Massachusetts’ version of a medical power of attorney.

• You appoint someone you trust (your “health care agent”) to make medical decisions if you become unable to make them yourself.

• This only becomes active when a doctor determines that you cannot make or communicate your own medical decisions.

• It ensures that your wishes regarding treatment, surgery, and end-of-life care are respected.

• Without this document, your family may need to go to court to get authority to make medical choices for you.

Durable Power of Attorney

This document allows someone else to handle your financial and legal matters.

• “Durable” means it remains effective even if you become incapacitated.

• Your chosen agent can pay bills, access bank accounts, manage investments, or sign legal documents on your behalf.

• Without it, your family may need to go through the guardianship or conservatorship process in Probate Court, which can be time-consuming and costly.

Springing Power of Attorney

A springing power of attorney works like the durable version, but with one key difference:

• It only “springs” into effect when a doctor certifies that you are incapacitated.

• Some clients like the added safeguard that their agent cannot act until they’re officially unable to do so.

• The downside is that it can delay urgent financial decisions, since proof of incapacity must be obtained before the agent can act.

Revocable Trusts

A revocable (or “living”) trust is one of the most flexible estate planning tools.

• You create the trust during your lifetime and transfer assets into it.

• You remain in control: you can change it, add or remove assets, or revoke it entirely.

• At death, assets in the trust pass directly to your beneficiaries without going through probate.

• This provides privacy (since probate records are public) and efficiency.

• Revocable trusts are especially useful if you own real estate in multiple states or want to streamline the transfer of assets for your heirs.

Irrevocable Trusts

Unlike a revocable trust, an irrevocable trust generally cannot be changed once it’s created.

• When you transfer assets into an irrevocable trust, you are giving up control of them.

• In exchange, these trusts can offer asset protection and estate tax planning benefits.

• In Massachusetts, irrevocable trusts are often used to plan for long-term care and Medicaid eligibility, since assets in certain irrevocable trusts may not be counted toward nursing home costs after a five-year lookback period.

• They can also reduce estate taxes by removing assets from your taxable estate

Realty Trusts

Realty trusts are specific to Massachusetts and are often used to hold title to real estate.

• They allow property to be owned in the trust’s name, with the beneficiaries listed in a separate, private schedule (not recorded at the Registry of Deeds).

• This can provide privacy of ownership, since the public deed will not show the beneficiaries’ names.

• They make it easier to transfer interests in property without going through probate.

• Realty trusts are commonly used for family homes, vacation properties, or investment properties in Massachusetts.

Putting It All Together

No single document covers everything. A good estate plan in Massachusetts typically includes a Will, Health Care Proxy, Durable Power of Attorney, and, depending on your goals, one or more types of trusts. Together, these documents make sure that:

• Your medical wishes are respected.

• Someone you trust can manage finances if you cannot.

• Your loved ones avoid unnecessary court involvement.

• Your assets pass efficiently and, in many cases, privately.