The calendar has turned to a new year, and while you’re making resolutions about fitness or finances, there’s another item that deserves your attention. Estate planning isn’t the most exciting way to spend a January afternoon, but it’s one of the most important things you can do for yourself and your family. Many Massachusetts residents put this off, thinking they’ll get to it “someday.” That someday should be now.
Whether you’re creating your first plan or updating an existing one, this new year estate planning review can protect your assets, honor your wishes, and spare your loved ones from unnecessary stress. Let’s walk through five practical steps to get your estate planning affairs in order for 2026.
1. What Should I Review First In My Estate Plan?
Your will forms the foundation of your estate plan. Under the Massachusetts Uniform Probate Code (Chapter 190B), this document directs how your property gets distributed after you pass away. If you die without a will in Massachusetts, state intestacy laws decide who receives your assets, and these decisions might not align with what you actually want.
Take the time to review your current will or create one if you haven’t already. Consider whether your family situation has changed: Have you married, divorced, or welcomed new children or grandchildren? Your will should reflect your current family structure and intentions. This review also applies to the person you’ve named as your personal representative (executor). If that person has moved, become unavailable, or is no longer the best choice, it’s important to make an update.
Massachusetts law has specific requirements for a will to be valid:
- It must be in writing.
- It must be signed by you (the testator).
- It must be witnessed by two competent adults, who also sign in your presence.
If your will does not meet these requirements, or if it was created under outdated rules, working with a Massachusetts estate planning attorney ensures that your will is valid and accurately reflects your wishes.
2. How Can I Protect My Estate from Massachusetts Taxes?
Massachusetts has one of the lowest estate tax thresholds in the country, currently $2 million (2026). Estates valued above this amount are subject to state estate tax, with graduated rates ranging from 0.8% for estates just over $2 million to 16% for estates over $10 million. Many Massachusetts families discover that the combined value of their home, retirement accounts, life insurance, and other assets exceeds this threshold.
For comparison, the federal estate tax exemption in 2026 is projected at $15 million per individual, or $30 million for married couples. Massachusetts estate tax is separate from federal tax, so even if your estate is below the federal exemption, it could still owe state tax. High-value real estate in the Greater Boston area or along the coast can quickly push your estate over the Massachusetts threshold.
There are planning strategies to minimize Massachusetts estate taxes:
- Credit shelter trusts (bypass trusts). Married couples can use these trusts to take full advantage of both spouses’ state estate tax exemptions, sheltering assets from tax after the first spouse passes.
- Irrevocable life insurance trusts.These remove life insurance proceeds from your taxable estate, preventing them from being subject to estate tax.
- Lifetime gifts. Giving assets to family members during your lifetime can reduce the value of your taxable estate while letting your beneficiaries enjoy the property now.
Because Massachusetts estate tax laws are complex and separate from federal rules, it’s important to review your estate plan with a qualified Massachusetts attorney. Proper planning can significantly reduce your estate tax liability and preserve more assets for your heirs.
3. Why Do I Need Powers of Attorney and Healthcare Documents?
Planning for incapacity is just as important as planning for death. If you become unable to manage your own affairs due to illness, injury, or cognitive decline, who will handle your finances? Who will make medical decisions on your behalf?
Durable Power of Attorney
In Massachusetts, a durable power of attorney (DPOA) allows you to appoint someone to manage your financial and legal matters if you become incapacitated. This includes paying bills, managing property, and handling business affairs. The “durable” feature ensures that the document remains effective even if you lose mental capacity, which is when it is most needed. Durable powers of attorney are governed by M.G.L. Chapter 190B, Article V, §§5‑501 through 5‑513.
Healthcare Proxy
A healthcare proxy lets you designate an agent to make medical decisions for you if you are unable to do so. In Massachusetts, the healthcare proxy is your primary advance directive, because the state does not recognize living wills. Healthcare proxies are governed by Massachusetts General Laws Chapter 201D.
Execution Requirements:
- Both the DPOA and healthcare proxy must be signed by you.
- Each must be witnessed by two competent adults. Neither witness may be the person you appoint as your agent.
- Keep originals in a safe yet accessible location and provide copies to your agents, your primary care physician, and trusted family members. Avoid locking them away in places like safe deposit boxes if your agents may need access in an emergency.
Having these documents in place ensures that your financial, legal, and medical affairs will be handled according to your wishes if you cannot act for yourself.
4. Should I Consider Creating a Trust?
Trusts aren’t just for wealthy families. They can serve various purposes depending on your situation and goals.
Revocable Living Trusts
A revocable living trust allows you to maintain full control over your assets during your lifetime while avoiding the probate process after your death. Assets properly titled in the trust pass directly to your beneficiaries without court involvement, which can save time, reduce costs, and maintain privacy. However, assets in a revocable trust are still considered part of your taxable estate for Massachusetts estate tax purposes.
Irrevocable Trusts
Irrevocable trusts remove assets from your estate, which can help reduce Massachusetts estate taxes. These trusts are also useful for protecting assets for beneficiaries who are minors, financially inexperienced, or have special needs. A special needs trust can preserve government benefits for a disabled family member while providing supplemental support.
The Massachusetts Uniform Trust Code, which is incorporated into Chapter 190B, governs how trusts operate in our state. Understanding these rules helps ensure your trust accomplishes what you intend.
Do You Need a Trust?
Not everyone requires a trust, but many Massachusetts families benefit from having one as part of a comprehensive estate plan. When setting your 2026 estate planning goals, assess whether a trust fits your circumstances, goals, and family needs. Consulting a qualified Massachusetts estate planning attorney can help you determine the right type of trust and structure it properly.
5. When Should I Update My Beneficiary Designations?
Your will does not control all of your assets. Many accounts and policies pass outside of probate through beneficiary designations, including
- Life insurance policies
- Retirement accounts such as 401(k)s and IRAs
- Annuities
- Payable-on-death (POD) bank accounts
Beneficiary designations override your will. For example, if your will leaves everything to your current spouse but your ex-spouse remains listed as the beneficiary on a life insurance policy or retirement account, the ex-spouse will receive those assets regardless of your will.
In Massachusetts:
- Divorce automatically revokes ex-spouse provisions in wills and trusts (M.G.L. c. 190B, §2‑804).
- Beneficiary designations are not automatically updated after divorce. You must actively change the beneficiary on each account.
When to review your designations:
- After major life events: marriage, divorce, births, deaths, or estrangements from family members.
- Periodically, to ensure that your primary and contingent beneficiaries are still appropriate.
Important: If a beneficiary predeceases you and no contingent beneficiary is named, the asset may:
- Go through probate, or
- Be distributed according to the plan of the financial institution, which may not match your wishes.
Regularly reviewing and updating your beneficiary designations ensures your assets are distributed according to your intentions and avoids unintended complications for your heirs.
Key Takeaways
Massachusetts estate planning requires careful attention to state-specific laws as well as your personal circumstances.
A thorough new year estate planning review should include:
- Examining your will to ensure it is valid under Massachusetts law, reflects your current family structure, and names an appropriate personal representative.
- Evaluating estate tax planning opportunities given the $2 million Massachusetts estate tax threshold and graduated rates up to 16 percent. Strategies such as credit shelter trusts, irrevocable life insurance trusts, and lifetime gifts can help minimize your estate tax liability.
- Creating or updating a durable power of attorney and healthcare proxy so your financial, legal, and medical decisions are handled according to your wishes if you become incapacitated.
- Considering whether a trust fits your situation, including revocable living trusts for probate avoidance or irrevocable trusts for estate tax reduction, special needs planning, or structured distributions for minor or inexperienced beneficiaries.
- Verifying all beneficiary designations on life insurance, retirement accounts, annuities, and payable-on-death accounts to ensure they align with your current intentions. Remember that divorce does not automatically update these designations in Massachusetts.
Working with a Massachusetts estate planning attorney ensures your documents comply with state law and work together to achieve your goals.
Regular reviews, especially after major life events such as marriage, divorce, births, deaths, or changes in asset values, keep your estate plan functioning as intended. Taking these five steps now provides protection during incapacity and peace of mind for your family after your death.
Frequently Asked Questions
What happens if I die without a will in Massachusetts?
If you die without a will, Massachusetts law decides who inherits your property. Your spouse usually gets a portion of your estate. Children, parents, or other relatives may also inherit depending on who survives you. A valid will lets you choose who receives your assets.
How much does it cost to go through probate in Massachusetts?
Probate costs depend on the size and complexity of the estate. Fees may include court filing fees, personal representative fees, attorney fees, and other administrative costs. Estates under $25,000 may qualify for a simplified process called voluntary administration. Using trusts and keeping beneficiary designations current can reduce probate costs.
Can I create my own estate planning documents?
Yes, Massachusetts does not require an attorney to make a will or healthcare proxy. However, mistakes in DIY documents can cause problems. An estate planning attorney can ensure your documents meet legal requirements and work together properly.
What’s the difference between a revocable and irrevocable trust?
A revocable trust lets you control and change assets during your lifetime. Assets in a revocable trust remain part of your taxable estate. An irrevocable trust cannot be easily changed after it is funded. You give up control over the assets, but they are generally removed from your taxable estate. Each type serves different planning purposes.
How often should I review my estate plan?
Review your estate plan every three to five years or after major life events such as marriage, divorce, births, deaths, moving, or changes in asset values or tax laws. Check beneficiary designations annually and meet with your estate planning attorney periodically to keep everything up to date.
Contact Us
Your family’s future deserves thoughtful planning. At Cote Law Group, PLLC, we help Marshfield families and individuals throughout Massachusetts create estate plans that protect their assets, honor their wishes, and provide for their loved ones.
Starting your new year with organized, updated estate planning documents brings tremendous peace of mind. You’ve worked hard to build your assets and care for your family. Now take the time to ensure those efforts are protected through proper planning.
Don’t let another year pass without addressing your estate planning needs. Reach out to our office today to schedule a free consultation. We’ll review your current situation, answer your questions, and help you develop a plan tailored to your unique circumstances and goals. Let’s work together to make 2026 the year you get your estate planning in order.