| Estate planning has three main purposes: 1) to
create a plan to dispose of your assets upon your death, 2) to
make arrangements for lifetime management of your assets if you are
unable to do so, and 3) to make arrangements for your lifetime
medical care in case you are unable to communicate your medical decisions.
Often, estate planning is looked upon merely as tax planning, making
sure that assets are preserved for distribution to family, loved
ones, and charity rather than taxed by the state and federal government.
In my view, however, estate planning is more about providing guidance
to the ones you love so that your assets are distributed according
to your wishes, your assets are managed during your lifetime for
your benefit, and your medical care is appropriate based upon your
values and desires.
Estate planning for elders also involves a component of planning
in case one is placed in a nursing home and needs to qualify for
MassHealth (Medicaid) benefits. With the newly enacted five year
look back period for all gifts (transfers for less than full market
value), even younger people must be aware of the implications of
gifts they give on future MassHealth eligibility.
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