Should You Put Your Adult Child on Your Bank Account?
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
3w ago
Sometimes an older adult puts their adult child on their bank account. The rationale for this is that the adult child can assist the parent by paying their bills and managing their accounts, including keeping an eye out for fraud. However, co-owning the account comes with its own problems. Potential Problems Likelihood of family squabbles: When you put one adult child on your bank account, that means they have access to your money. Let’s say Len is 75 and he has three adult children: Jenny, Barry, and Bob. Len decides he’d like some help managing his finances, so he puts his daughter Jenny on ..read more
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Out-of-State Real Estate and the New Massachusetts Estate Tax Law
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
2M ago
We previously wrote an article about the Massachusetts estate tax exemption increasing from $1M (million) to $2M for people dying on or after January 1, 2023. Something else changed under that new law that affects how out-of-state real estate is treated when it comes to Massachusetts estate taxes. Previously, if a Massachusetts resident owned real estate outside of Massachusetts, when they died that real estate wasn’t included in the calculation of the deceased person’s estate value. The new law says that out-of-state property will now be included in the calculation of a decedent’s estate valu ..read more
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Important Massachusetts Estate Tax Changes
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
2M ago
When a Massachusetts resident dies, the Massachusetts estate tax may come into play on that person’s estate. It’s basically a transfer tax on the entire estate before it can be distributed to any heirs. Currently, 33 U.S. states don’t have any estate tax. The bad news is that Massachusetts does have an estate tax. The good news is that the Massachusetts estate tax exemption has recently increased. The New Law As of October 4, 2023, the Massachusetts estate tax exemption increased from $1M (million) to $2M for people dying on or after January 1, 2023. When you die, if your estate is valued at ..read more
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Beneficiary Rights in Massachusetts
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
5M ago
One part of creating an estate plan is to determine who will receive your assets when you pass away. A beneficiary is a person, charity, or other organization that receives money or property because someone specifically named them in their will or trust. If you’ve been named a primary beneficiary in a will or trust (first person in line to receive a distribution), you have a legal right to those assets after the person who created the estate plan passes away. Here’s some important information that you should know about beneficiary rights in the state of Massachusetts. Beneficiary Rights for a ..read more
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Do You Have to Accept an Inheritance?
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
7M ago
Ok, this probably seems like an odd question to most people. Who wouldn’t want to accept an inheritance? Wouldn’t adding value to the assets you already have be a positive outcome for everyone? The truth is that there are some pretty good explanations for why someone might refuse to accept an inheritance, which is a process called “disclaiming.” Reasons Why Someone Might Not Want to Accept an Inheritance A person might not want an inheritance because: They would prefer the assets go to a different beneficiary like a charity or other loved one of the decedent (person who died), which would all ..read more
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6 Facts You Need to Know About the Gift Tax
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
7M ago
If you’re thinking about giving a significant gift to your adult child or even a complete stranger, there’s some information you should know first. According to the IRS, “gifts” include cash, real estate, and other forms of property. The gift tax is a federal tax on the transfer of property from one person to another while receiving nothing, or less than full value, in return. Important facts to know: 1. Sometimes There’s No Gift Tax There’s an annual gift tax exclusion set by the IRS. In 2023, the person giving the gift doesn’t have to pay a gift tax if the gift is $17,000 or less per person ..read more
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8 Benefits of Having a Trust
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
8M ago
There are many benefits of having a trust. When you start doing your estate planning, you need to decide whether a will, a trust, or a combination of the two is right for you. Unfortunately, there’s a misperception that having a trust is only for rich people. The truth is that trusts can be set up for different purposes and benefit people even if their bank accounts aren’t bursting at the seams. What is a Living Trust? A Massachusetts living trust is a legal document that can hold legal title to your assets. It’s like a box that holds your assets for your benefit during your lifetime, and ther ..read more
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Recent News: A Step-up in Basis and Irrevocable Trusts
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
8M ago
Recently, there’s been news about how a new IRS ruling (Revenue Ruling 2023-2) in March 2023 affects the step-up in basis for certain irrevocable trusts. There are several types of irrevocable trusts, and it’s important to understand that this ruling only affects irrevocable trusts designed to exclude trust assets from the grantor’s estate. These types of irrevocable trusts are often used by people with a high net-worth to gift assets away during life so that their estate tax is reduced. Irrevocable trusts created for Medicaid/MassHealth planning won’t be affected by this ruling. In order to u ..read more
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3 Reasons New Parents Need an Estate Plan
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
9M ago
Having a baby is such an exciting time. There’s so much to think about. Baby-proofing the house, choosing your baby’s health care provider, getting health insurance for your baby, and buying a car seat are just a few of the things on your mind. One important item that might not be on your list but should be is that new parents need an estate plan. The day your child is born, you realize that protecting them is a priority. The problem is that life is unpredictable. You know how you want to raise your child, but what if something happens and you’re not able to always be there for your child? It ..read more
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9 Estate Planning Myths
The Heritage Law Center, LLC | Estate Planning
by Matthew Karr
10M ago
There are many common estate planning myths. The issue is that people often cite these false beliefs for reasons why they haven’t done their estate planning. We want to clear up these myths, so you’ll understand the value of estate planning in an effort to protect yourself, your family, and your assets. Myth 1 – Estate Planning is Only for the Wealthy This is one of the most common estate planning myths. Estate planning is for everyone. If you own assets and want to leave them to your loved ones, you should have an estate plan in place. Plus, estate planning is not just about what happens ..read more
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