Massachusetts Estate Planning Blog

A month ago, in our April 15 post, we wrote about Google's introduction of a dashboard to assist people with making decisions about what happens to their digital data after death. This could include designating someone to serve as "inactive account manager" - or, in more popular terms, a Google heir.

In an age that has been rise to Google driverless cars and Google "glass" (computerized eyewear), this is hardly a far-fetched term. But as big as Google is in its cultural reach, the question of digital heirs goes far beyond any particular company or service provider.

In Massachusetts and across the country, more and more people are tryng to come up with estate plans that integrate all of their online assets.

Young people in their 20s and 30s have a lot on their plates. Finishing school, starting a family, launching a career — all are inherently challenging. Indeed, the combination of increases in the cost of college and the sluggish post-Recession job market can make stepping fully out into adult life harder than ever.

People under 40 would do well to remember the importance of getting started on estate planning as well. In Massachusetts and across the country, getting at least a basic estate plan in place is important.

In last week’s post, we wrote about the importance of updating beneficiary designations in life insurance policies and on retirement accounts. The reason for doing so is simple: to make sure the designations continue to express the priorities of the policy or account holder.

A good example of this can be seen in a current U.S. Supreme Court case. The Court heard oral arguments last month in Hillman v. Maretta, a case involving a man who neglected to change the beneficiary of his life insurance after getting divorced and remarrying. The case serves as a reminder to people in Massachusetts and across the country of the importance of making beneficiary changes in a timely manner.

In recent years, Congressional action on esate taxes has focused on raising the exemption amount. The changes have increased the amount of assets that can be excluded from the federal estate tax. Individuals can now pass along up to $5.25 million without tax liability. For married couples, the amount is a hefty $10.5 million.

This does not mean, howevever, that only very wealthy taxpayers have to be concerned about the estate planning issues. In Massachusetts and across the country, many other people - of varrying income levels - also have important estate planning decisions to make.

It sounds like something that would happen only in an old-fashioned board game. A long-last relative dies, leaving you a big bequest that solves all of your money problems.

In a recent Massachusetts case, however, two women did inherit money from a long-lost relative. The case spanned two continents, as the relative was from Ireland. But a genealogist helped make the connection. And the Massachusetts women - cousins who had not previously met - will be receiving part of a large estate on the other side of the Atlantic.

Estate planning and administration are highly traditional areas of the law. This tradition reflects centuries of common law practice, along with modern statutes.

Increasingly, however, taking care of an estate after someone dies involves dealing with issues regarding the "digital afterlife." In Massachusetts and across the country, control of online data after death is growing in importance all the time.

Last week, Google announced the release of a dashboard to allow its users to enable people to make more proactive decisions about what they would like to happen to their data after death. The dashboard applies to several popular platforms, including Gmail and Google +.

Life never stands still. Even when you have crafted an estate plan that makes sense for you and your family, it's only natural that changes will come up. This doesn't mean there was anything wrong with your earlier planning. It simply means that life is dynamic and it is simply not possible to anticipate every possible change.

That is why, in Massachusetts or any other state, making an amendment to a trust is often in order. It could be a living trust or some other type of trust. The main thing is that something has changed and it is necessary to reflect that change in the trust document.

Succession planning is important for any organization. But it is particularly important for small businesses - especially it is a family-run small business. In a small business owned or operated by a family, changes in the family structure can directly affect the business itself.

That is why estate planning for small business owners should take proper account of potential business succession issues. This is true not only in Massachusetts, but across the country. Nationally, two-thirds of family-owned businesses fail to continue into the second generation because of family conflicts.

Massachusetts was the first state to legalize same-sex marriage. Eight more states have followed. But much remains to be clarified, even for same-sex couples in Massachusetts and those other states, about what their rights are under federal law.

That is why today's oral argument in the U.S. Supreme Court on same-sex marriage is so important. The Court is considering a challenge to the federal Defense of Marriage Act (DOMA). DOMA denies same-sex couples federal benefits that are available to people in heterosexual marriages.