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LAW OFFICE OF RAYMOND J. CANNON, JR., P.C.
Estate Planning, Elder Law, Medicaid-Long Term Care Planning,
Asset Protection Planning, Tax Planning, Real Estate,
Probate and Estate Administration |
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Our mission is to preserve and protect your assets. | |
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 THE NUMBERS
FIVE REASONS TO HAVE A WILL
1. Inheritance Laws Are Inconsistent
Since a will is the only method that people can use to ensure that the estate they leave behind will be dispersed as they wish after their death, it is necessary for everyone to have one. It is particularly important to have a will in place if you have under age children.
2. Intestate Rules Are Costly
When there is no valid will in place at the time of someone's death, the estate will is inherited according to intestate rules. These kinds of rules can be inflexible and impractical, as they are not designed toward any specific person or intention. Assets may not be distributed, for example, until all intestate succession rules are satisfied.
3. Wills Appoint an Executor
Decedents will have appointed a trusted executor to disperse their assets according to their wishes. Without a will, the state will appoint someone who may not be suited to the task.
4. Unpleasant Situations Can be Avoided
When a will is in place, the unpleasantness and inconvenience often presented can be avoided. For example, heirs squabbling about how the assets will be divided can be eliminated for less cost, fuss and stress.
5. Guardianship of Children
When there are minor children left behind after a parent's death, the will is an important instrument that designates the parties who will take on parental responsibilities. When there is no will, the court will appoint a guardian and extra fees will be paid that may have been avoided. When there is an appointed guardian by the decedent, minor children can have the peace of mind of being cared for well and as intended by the parents. |
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LAW OFFICE
OF
RAYMOND J. CANNON, JR., P.C.
Admitted
Massachusetts Bar
United States Tax Court
Federal District Court of MA
United States Supreme Court
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 3 YEAR REVIEWS We encourage you to take advantage of our free one-hour consultation to review your estate plan on your plan's third year anniversary. Please call 978-989-9999 for an appointment.
Please notify us at ray@rjcannonlaw.com
if your contact information has changed since your last visit.
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Please feel free to forward this Newsletter to your family, friends and associates who may be interested in a one-hour free consultation to discuss these topics. |
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JANE AND THE RELUCTANT TRUSTEE
Jane called to tell me that she and her brother-in-law, Peter are co-trustees of a trust set up by Peter's mother, Mary, for Mary's benefit during her lifetime. Mary has since passed away, but because of a rift between Peter, his mother and Jane, Peter no longer wants to have anything to do with Jane or the trust and will not resign as trustee. Jane wanted to know what, if anything, could be done.
The first thing to determine is whether the trust permits one trustee to act on behalf of both trustees. If so, then Jane may continue to manage the trust and make distributions according to its terms. If the trust does not permit one trustee to act on behalf of another, then we should determine whether the beneficiaries have the power to remove the reluctant trustee. If so, then Jane may continue to manage the trust and make distributions according to its terms.
Massachusetts (and many other jurisdictions) have enacted the Uniform Trust Code which permits a trustee to be removed (1) for serious breach of trust, (2) because of lack of cooperation among co-trustees that substantially impairs trust administration, (3) where because of unfitness or persistent failure to administer the trust effectively, removal is in the trustees' best interests, or (4) where there is a substantial change of circumstances or removal is requested by all "qualified beneficiaries" and removal is in the best interests of the beneficiaries and is not inconsistent with a material purpose of the trust.
Generally, the active trustee can rely on the above provisions to act without the reluctant trustee, but in some instances, the active trustee may have to go to court to have the reluctant trustee removed. This can be a long and complicated process with extensive legal fees which in turn will diminish the amounts to be paid to the beneficiaries..
LESSON: When choosing family members as trustees to act on your behalf, consideration must be given to the possibility that one or the other of them may have a falling out. In anticipation of this possibility, the Donor of the trust should make sure to provide language in the trust that a reluctant trustee may be removed by a majority of the beneficiaries. This should always be done in consultation with an attorney.
If you are new to the Jane Chronicles, you may read past issues by going to our website:
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Elder abuse may take many forms. Statutory definitions of elder abuse may include physical abuse, psychological or emotional abuse, sexual abuse, financial exploitation, neglect, abandonment, and even self-neglect. As a result, the courts may see elder abuse in a variety of contexts: criminal cases of assault, battery, rape or theft which may carry enhanced penalties when committed against an older person); civil fraud or conversion matters; personal injury actions; guardianship or conservatorship; mental health commitment; special protective
proceedings; cases involving health care decisions for an incapacitated patient; and criminal or civil cases regarding institutional care.
Sources: Stiegel, Lori A., Recommended Guidelines for State Courts Handling Cases
Involving Elder Abuse, American Bar Association, 1995
National Center on Elder Abuse, What is Elder Abuse?
http://www.interinc.com/NCEA/Elder_Abuse/
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MARY IMMACULATE/HEALTH CARE SERVICES
Mary Immaculate Health/Care Services enjoys the reputation in the Merrimack Valley as a faith-based provider of healthcare and housing for older adults. Our expansive facilities offer a full continuum of care including independent living, adult day health, short term rehabilitation and long term care.
Marguerite's House Assisted Living at Mary Immaculate is one of the best kept secrets in the region. For an average cost of $2000/month, residents can maintain their independence in spacious one bedroom apartments. Services include assistance with personal care, medication management, meals, housekeeping, laundry, transportation and 24 hour on-site emergency response. To learn more, visit www.mihcs.com
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THE MODERN FAMILY
40.8% of children are now born to a single parent;
16.1% of US households are now multi-generational, almost as high as 1940;
The age at which children reach financial security continues to rise;
48% of middle-aged adults provided support in 2012 for a child over 18;
21% of middle-aged adults provided financial support in 2012 for a parent over age 65;
19.8% of adults are treated annually for mental illness and 4.6% for serious mental illness.
Source: Karen Klegler Hansen, The Modern Family, Trusts and Estates Magazine, August, 2013
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