Wills Archives - Vickstrom Law

Planning Your Estate After a Divorce

July 19, 2018 by Kristina

If you have just gone through the emotional and financial upheaval of a divorce, the last thing on your mind is contacting an attorney to make changes to your estate plan. Yet, it is essential that you review and update your estate documents to reflect this major life change. During the divorce process, you likely dealt with property division, and possibly child custody and spousal support. Your estate plan should reflect changes. Otherwise, your assets could be distributed in ways you neither expected nor intended. [Read more…]

Can Someone With Dementia Sign a Will?

June 30, 2018 by Kristina

Millions of people are affected by some form of dementia. Unfortunately, many dementia patients don’t have all their estate planning affairs in order before the symptoms begin to appear. This is another good reason to speak with an elder law attorney now, rather than putting off such a discussion.

However, if someone you know has symptoms of dementia, it might not be too late to sign a will or other estate planning documents. [Read more…]

Can I Get Executor Fees for Handling an Estate?

May 7, 2018 by Kristina

After the passing of a loved one, a common question by one of the children is: Can I get paid executor fees? If you are appointed the executor, or personal representative (as it is called in Massachusetts), of a deceased loved one’s estate, you may face many challenges. There are a number of duties for which you will be responsible, including gathering and securing the deceased’s assets and household belongings, paying debts and taxes, filing court paperwork, and making distributions to beneficiaries. The process can be time-consuming, complex, and emotionally draining. Even when everything runs smoothly, questions are likely to arise.

In most cases, the answer is yes, you are entitled to receive executor fees for your services. However, there are some issues to consider before you can receive payment from the estate. If there is a Will, the deceased may have specified the amount of compensation or prohibited executor fees. This latter situation sometimes occurs when the executor is a family member who is also a beneficiary under the Will. If the Will is silent regarding executor fees or the deceased dies without leaving a will, then executor fees are determined by state law. This is where things may get complicated.

Consider the case of Lawrence, who was appointed the personal representative of an estate in Massachusetts where the primary asset was a house subject to a small mortgage. Lawrence sold the house, paid off the mortgage, dealt with the contents of the estate, and the assisted his attorney with court paperwork. He also made distributions to the beneficiaries. He charged the estate $7,500, what he considered a fair price for his services. When one of the beneficiaries objected to the fee, the court denied the executor fee because Lawrence did not have any records to back up his executor fees.

Unlike in some states, where the executor fees are fixed amounts equal to a percentage of the probate estate, in Massachusetts the executor is entitled to “reasonable compensation” for services rendered. The executor fees can also be subject to approval by the probate court.

What exactly is “reasonable compensation” though? How do you determine for which services you are entitled to be paid executor fees and at what rate? There are no clear guidelines under the law in Massachusetts, but the probate court will consider factors such as the size of the estate, the time reasonably required to administer the estate, whether the services rendered were reasonably necessary, and the amounts usually paid to others for similar services.

So what does all this mean in practice? Most importantly, you must keep detailed records. Do not wait until the end of the process to attempt to compile a list of services performed. You will need to disclose your executor fees in the final accounting filed with the court and/or shared with the beneficiaries. When you do, you should include:

a detailed record of the tasks performed
the amount of time spent on each task
the hourly rate billed for each task.

For example, a record that lists: “February 1, 2013: 2 hours at $25/hour preparing financial statement for accountant,” along with similar entires, are more likely to be approved by the court than: “$1,000 for bookkeeping services.”

Finally, keep in mind that any executor fees you receive are considered income and are taxable. If you want to avoid tax consequences, you have the option to decline compensation for your services.

Although it is an honor to be appointed or asked to serve as an executor, it is not a situation you should take lightly. Most often having the guidance of an attorney is necessary to avoid common costly mistakes. Contact us to discuss your rights and obligations.

What really happens to your estate if you die without a Will in MA?

December 23, 2016 by Kristina

Dying without a Will is called dying “intestate.” What this means is that your intentions as to who inherits your assets, who administers your estate, and who acts as guardians for any young children are determined by the Commonwealth of Massachusetts.

Upclose photo of Last Will & Testament and pen - for article about Wills & Trusts

[Read more…]

4 Steps to Get Your Online Accounts in Order

April 28, 2013 by Kristina

Have you given any thought as to what would happen to your internet presence after you pass away? With a vast majority of adults now using online services such as email and social networking sites on a regular basis, digital estate planning is becoming increasingly important. Without a plan in place, your family may not be aware of the extent of your digital assets and may not be able to access your online accounts after you’re gone.

What is a Digital Asset?

Usually when we discuss assets, we think of things that exist in solid form and have tangible value. However, in this digital age, that definition isn’t broad enough. Our digital assets can include things like digital music and books we’ve purchased, as well as artwork we might have created online. Also, any account you create on a content-sharing site like Facebook or Picasa can be considered an asset, itself.

Unfortunately, the law in this area has yet to catch up with the modern digital age. Currently, only five states have laws regulating access to a deceased person’s online accounts. Though Massachusetts is working on legislation, it has yet to enact a law.

Because of privacy concerns, online companies like Facebook and Twitter refuse to grant surviving family members access to their members’ accounts. However, some companies are trying to address this growing issue. For example, Google created the “Inactive Account Manager,” which allows users to choose what will happen to their Gmail messages or other data if their accounts become inactive.

With the state of the law uncertain, it is important to revise your estate plan to ensure that your digital assets are disposed of according to your wishes. The government now recommends that people create a social media will.

Here are some steps you can take to get your digital affairs in order.

Inventory your digital assets: determine what digital content exists and where it is located
Decide what should happen to each digital asset or account after you’re gone
Designate a digital personal representative to dispose of your online assets and accounts according to your wishes
Create a separate document containing information on how to access online accounts, including usernames and passwords (since a will is a public document, it is best not to write this information in your will)

There are also a number of websites that have sprung up recently that can help you keep track of your online data and release it to those you designate after you pass away. Some include Legacylocker.com, Assetlock.net, and Deathswitch.com.

If you have not yet made provisions for what will happen to your online presence after you’re gone, contact Attorney Kristina Vickstrom at 508-757-3800. We will review your digital assets and help you incorporate them into a comprehensive estate plan.

“Do It Yourself Will” Websites Panned by Consumer Reports

April 15, 2013 by Kristina

A growing number of websites now allow people to plug in information about themselves and create a “do it yourself will”. But doing so can be very dangerous and can lead to big problems, according to an independent review by Consumer Reports.

The magazine analyzed three such sites – LegalZoom, Rocket Lawyer, and Quicken WillMaker Plus – and ran the results by a law professor who specializes in tax and estate law. All three “do it yourself will” websites had a variety of problems, according to the study.

The problems included:

Outdated information.

Two sites applied federal tax rules that were already months out-of-date.

Not state-specific.

The law of wills varies from state to state, but the programs didn’t take into account variations in state law, including state lax law.

No tax advice.

None of the programs offered tailored advice on how to reduce taxes – a critical flaw.

Incomplete.

The websites often lacked provisions on how to handle business interests, electronic assets, trusts for children with special needs, trusts for pet care, domestic partnerships, multiple trustees, how executors are to be compensated, etc.

No flexibility.

The websites frequently made arbitrary choices and didn’t allow bequests to be handled differently. And some added additional provisions to trusts without any warning.

The professor described one will produced by Rocket Lawyer as “primitive,” and another as “a mess.”

The magazine noted that LegalZoom allows you to pay extra money to receive attorney “support,” but when it contacted the company, it was told to type questions about arbitrary or missing provisions into a box and that these would be handled later in a hard copy of the will. According to Consumer Reports, even though it paid the extra fee, this never happened.

Using a “do-it-yourself will” website to create your will can be “like removing your own appendix,” according to the Consumer Reports article.

There’s simply no substitute for a lawyer who can understand your wishes and goals, and provide legal and tax advice that’s suited to your specific needs. Although it’s best to contact us first, if you have already paid for one of these services call us today to review your will and make sure it accomplishes your goals and is appropriate for your unique situation.

Photo Credit: lukemontague

How to Prepare Financially for an Emergency

November 1, 2012 by Kristina

Massachusetts was recently struck by Hurricane Sandy, as was most of the east coast. We did pretty well here in Worcester and our hearts are with those who fared much worse than us in New York and New Jersey among other places.

Watching the devastation on television made me take action on two fronts, one: donate money to the Red Cross, and two: make sure my financial house was as ready for an emergency as my physical house was.

Here in Massachusetts we’re preparing for the snow storm season, so it is never too late to start.

For an emergency like the one the east coast just experienced experts recommend, among other things water and food to last about three days, cash and a tank full of gas (http://www.redcross.org/prepare).

What about our financial house? Let’s start with the most immediate needs and think about what should go into an emergency financial kit:

1. Access to cash in an emergency

Keep information about all the accounts that could give you access to cash, this includes checking, savings, money market, and even home equity accounts. You will need the account numbers and contact information for the financial institution. Most often, a copy of a statement will have all the information you need.

You should also consider including a copy of all your credit and debit cards, both front and back. This will give you the information you need to pay in some cases, or to contact the institution should you need to.

2. Medical Information and Caregivers

Your emergency financial kit should also include information about your preferred medical providers. Having their contact information can ensure you are treated by your preferred provider in an emergency, and in some cases, save you money.

3. Insurance Information

Make copies of ALL your insurance cards. Home, car, medical, dental and prescription. If your home or vehicle are damaged, the insurance information in there may be damaged as well, also, if you end up having to evacuate and leave your home or vehicle, you will not want to return just to retrieve these.

Also make sure you have the contact information for your insurance company and agent. Often in an emergency where companies are swamped with requests, your agent can help you get through or connect you to other resources available to you.

4. Longer Term Investments

Your emergency financial kit should also include copies of paperwork documenting your investments accounts. Your investment accounts include IRA, 401(k), stocks, bonds, 529, or any other retirement or long-term savings account. Also include the contact information for any financial planner or planners who manage these accounts for you.

5. Your Estate Planning Documents

Your Will, Health Care Proxy, and Power of Attorney should always be in a safe place, but especially in an emergency. You should place your paperwork in your emergency financial kit, or the information on how to access them, whether they are with your attorney or a safety deposit box etc…

6. Accessing Your Financial Information online

If all the information for accessing you finances and any other important sites are safely locked away in your memory, you may want to consider including the websites and passwords in your emergency kit, or if you do not feel safe carrying that around, you can provide them to a trusted person who is out of harm’s way. This will allow your family to access important information or funds if you are incapacitated, or simply incommunicado.

With the winter upon us here in Massachusetts, and with the painful lessons the Northeast just learned fresh in our memories, now is a great time to look at your emergency plan. If you have not done much in the way of financial or estate planning, now is a good time to think about that as well, and whether your family would be protected in the worst-case-scenario. Call us to discuss your planning and the best way to protect your family in an emergency.

Whitney Houston’s Estate Plan: Good, But Not Great

April 27, 2012 by Kristina

Whitney Houston’s tragic death provides an example of how a trust that takes effect upon death can work as part of an estate plan. But Houston’s estate plan has some surprising aspects as well; there were pieces of her plan that could have, and likely should have, been better.

The late singer’s will leaves everything to her 19-year-old daughter, Bobbi Kristina, but Kristina can’t access her mother’s estimated $20 million fortune right away because it is in a trust. [Read more…]

Why Single People in Worcester County Should Consider Estate Planning

January 25, 2012 by Kristina

When we typically think of estate planning, we see grandma and grandpa putting together a Will and possibly setting up some trusts for the following generations. It’s all about providing for our offspring, right? [Read more…]

How Do I Bring Up the Topic of Estate Planning to My Parents?

December 27, 2011 by Kristina

In Worcester, just as everywhere else in the nation, there is a tendency for people to put off estate planning. Elder law attorneys, like Kristina Vickstrom, recognize that there are multiple factors that lead people to procrastinate when it comes to the estate planning process. [Read more…]