A robust estate plan requires you to incorporate tools and strategies into your plan that go above and beyond what a Last Will and Testament or a trust can accomplish. The precise tools and strategies that you include in your plan will depend on your estate planning needs and goals. To give you an idea of how your plan might accomplish more than it currently is, the attorneys at Legacy Care Law Firm discuss estate planning beyond Will and trusts.
Advanced Directives
Planning for the eventuality of your death is crucial; however, planning for the very real possibility of your incapacity is equally prudent. If you are incapacitated, and unable to make healthcare decisions for you, who will make them? How can you ensure that your wishes will be honored? Executing a Living Will and a Healthcare Power of Attorney is the best way to ensure that your wishes are honored and that someone of your choosing makes healthcare decisions for you. A Living Will lets you decide now whether you will accept or refuse life-sustaining or life-prolonging medical treatment if you are unable to express your wishes because you are incapacitated. Your healthcare providers are legally obligated to abide by your choices made in a valid Living Will. A Healthcare Power of Attorney lets you appoint an Agent to make healthcare decisions for you if you cannot make or express those decisions, often eliminating conflict among family members over who will make decisions.
Gift Deeds
While you likely think of estate planning in terms of the distribution of assets after you pass away, sometimes it makes more sense to gift assets while you are alive. In that case, a gift deed may be useful. A gift deed is a formal document that transfers ownership of an asset to another person without “consideration.” Consideration is the legal term used to refer to the receipt of something of value in exchange. For example, when you sell your house the transfer deed will indicate that the buyer receives the property for $1 million (sale price) in consideration. Not all assets require you to prepare and execute a gift deed; however, it is wise to create one, especially for high-value gifts. The deed provides clear legal proof that you voluntarily gave away the asset and that you did not expect to receive anything in return. Not only does this protect the recipient from disputes but it also provides documentary proof of the new ownership. Of course, do not give away assets that you may yet need and be sure to discuss the gift and estate tax implications of making lifetime gifts because the value of the gift could be counted toward your lifetime exemption. Ask your estate planning attorney about making use of the yearly exclusion if you plan to make lifetime gifts.
Transfer on Death Accounts
A Transfer on Death (TOD) account is crafted to automatically transfer ownership of its held assets to designated beneficiaries upon the owner’s demise. Throughout the owner’s lifetime, beneficiaries lack any ownership, rights, or access to the assets. Once the beneficiaries duly establish the owner’s passing, however, they gain possession of the assets without the need for probate proceedings.
One notable drawback of a TOD account is that the assets remain part of the owner’s estate. While safeguarded from probate, they are not shielded from creditors. In the event of outstanding debts at the time of the owner’s passing, creditors hold the right to make claims on the assets in the account before the beneficiaries can inherit them. Consequently, these accounts compromise some of the protections provided by trusts in favor of increased flexibility.
Nominations
Nomination applies when purchasing certain financial instruments, like life insurance, where you are often prompted to designate a second holder. Opting for nomination is a prudent choice as it allows a trusted individual immediate access to your liquid and near-liquid funds in the event of your unavailability. It’s important to note that unlike a Transfer-on-Death (TOD) account, the nominee doesn’t acquire ownership but rather gains the right to utilize the funds based on your estate plan.
The key objective of nomination is to facilitate your loved ones’ access to funds required for covering your final expenses. To access the funds, your nominee simply needs to provide a copy of your death certificate. On the contrary, if you haven’t nominated anyone, your estate representative would have to navigate a significant portion of the probate process before gaining access to the funds. This could impose an unnecessary financial burden on your loved ones. Therefore, naming a nominee is advisable to preemptively address this issue and streamline the process.
Asset-Liability Registers
Asset-Liability Registers, commonly referred to as “estate inventories,” serve the purpose of consolidating information about your assets, accounts, and debts into a single document. This compilation proves invaluable for your estate representative, streamlining their tasks both before and during the probate process. It is important to note that the register itself doesn’t confer ownership or access rights on anyone; however, a meticulously crafted inventory facilitates your representative in efficiently tracking crucial accounts and accessing online portals as needed. Consequently, this expedites the probate proceedings, ensuring a quicker distribution of inheritances to your beneficiaries.
Are You ready to Take Your Estate Plan Beyond Wills and Trusts?
For more information, please join us for an upcoming FREE seminar. If you are ready to take your estate plan beyond basic Wills and Trusts, contact our estate planning attorneys in our North Andover, Woburn, and Beverly offices at (978) 969-0331. Our Salem and Nashua, New Hampshire office can be reached at (603) 894-4141.
- Five Common Mistakes to Avoid During the Probate of a New Hampshire Estate - September 3, 2026
- Tax Planning for Your New Hampshire Estate Plan - September 1, 2026
- Pursuing Guardianship Over a Parent in Massachusetts - August 20, 2026
