Estate planning encompasses more than just drafting a will. Without a thoughtful plan, your family could face long delays, unnecessary costs, and avoidable stress. At Surprenant, Beneski & Nunes, we’ve seen the impact of common estate planning mistakes. The good news is that with the right strategies, most can be avoided.
Below are 10 problems that could drain your estate and create challenges for your loved ones.
1. Probate Delays and Costs
Probate is the court process for transferring property after death. It involves:
- Collecting assets
- Notifying creditors
- Paying taxes and debts
- Distributing property under court supervision
Probate can take years and cost 3–5% of the estate. In Massachusetts, avoiding probate through a living trust is one of the most effective estate planning strategies. This means transferring assets such as bank accounts or real estate into the name of your trust so they pass privately and efficiently to your beneficiaries.
2. Estate Taxes in Massachusetts
While most families are not affected by the federal estate tax, Massachusetts has its own tax on estates valued over $2 million. That amount includes your home, retirement accounts, and even life insurance proceeds. Strategies such as creating a trust can reduce or eliminate state estate taxes, saving your heirs a significant expense.
3. Divorce and Creditor Risks
Many parents want their assets to stay in the family. Without proper planning, inheritances can be exposed to divorce settlements, creditors, or future spouses. By including protective provisions in a trust, you can ensure that assets pass to children and grandchildren, rather than being lost outside the family.
4. Young or Inexperienced Beneficiaries
An outright inheritance may not be the best option for younger heirs or those struggling with addiction, debt, or spending habits. Studies show many beneficiaries spend their inheritance within two years regardless of the amount. Creating a spendthrift trust can help preserve and manage these funds responsibly, protecting your life savings from misuse.
5. Guardianship Proceedings
If you become unable to make healthcare decisions, your family could face costly guardianship proceedings without the proper documents in place. A Massachusetts Health Care Proxy allows you to appoint an agent to make medical decisions on your behalf. With clear instructions, your agent won’t need to seek court approval for treatment or nursing home placement.
6. Conservatorships for Finances
Similar problems can arise with financial decisions. A carefully drafted Durable Power of Attorney allows a trusted person to manage your finances if you become incapacitated. If your power of attorney doesn’t include the right legal language, banks may refuse to honor it, forcing your loved ones to seek court approval. A detailed power of attorney tailored to your needs helps avoid this.
7. Nursing Home Costs
In Massachusetts, nursing home care often exceeds $12,000 per month. Without planning, this can quickly drain your estate. Options such as a Medicaid Asset Protection Trust or long-term care insurance can protect your property while still covering your care needs. Planning ahead is key because MassHealth enforces a five-year look-back period.
8. DIY or Ineffective Plans
Pre-printed kits and online templates often fail to account for Massachusetts law or your personal circumstances. Families often discover too late that online templates or form kits don’t meet state requirements or account for unique family dynamics. An individualized estate plan ensures your documents are enforceable, coordinated, and aligned with your goals.
9. Advice Outside the Legal Field
Financial planners and insurance agents may be helpful in their fields, but they are not licensed to provide legal advice. Estate planning is a legal process, and mistakes can surface only after you’re gone, when it’s too late to fix them. Work with an attorney who focuses on estate planning and asset protection to ensure your plan is valid and enforceable.
10. Unqualified Legal Guidance
Estate planning is complex, and not every attorney has the experience in elder law needed to stay current with legal updates and subtle nuances. Some may only handle these matters occasionally, which can leave gaps in your plan. You’ll want to work with a lawyer who regularly practices in this field and understands its many moving parts.
Why Work With Surprenant, Beneski & Nunes?
Our firm has decades of experience helping Massachusetts families protect their assets and provide for their loved ones. With two Certified Elder Law Attorneys (CELAs) on our team who are certified by the National Elder Law Foundation, we bring a depth of knowledge few firms can match. We understand both the legal and practical challenges of estate planning. We take the time to design plans that fit your unique circumstances and goals.
Take the Next Step
Don’t let common estate planning mistakes cost your family time, money, or peace of mind. At Surprenant, Beneski & Nunes, we will help you create a plan that protects your assets, minimizes taxes, and provides clear guidance for your loved ones.
Contact us today to schedule a consultation and start building a plan that secures your family’s future.
