Legal Question in Wills and Trusts in Massachusetts

Re: living vs. testamentary trust

Assuming that the life insurance amount is $150,000, this question requires more information to answer. What is the state of your and your wife's health? What other assets do you own? Are you concerned with you or your wife becoming eligible for Medicaid?

I would be happy to assist you to determine your needs and wants and to tailor a plan that can address both.

Re: living vs. testamentary trust

I would create a revocable living trust and make the trust the beneficiary of the life insurance, assuming that estate tax is not an issue. This will avoid probate. You could also leave the insurance directly to your wife.

If you are trying to protect the $150,000 from Medicaid or have other concerns I would suggest you contact an attorney to not only create a trust but to structure things so your wife gets the maximum benefit your life insurance, et cetera.

Please feel free to call me if you have more questions without obligation.

Re: living vs. testamentary trust

Let me be sure I understand the facts -- do you mean $150 MILLION or $150 THOUSAND? Also, what type of insurance is this? Term? Whole life? Universal life?

There is NOTHING simple about $150 million -- this amount calls for substantial tax planning.

If you're talking about $150 thousand, this elder law attorney says "it depends" -- it depends on the type of life insurance, it depends on your and your wife's health, it depends on what other assets you may have, it depends on whether you are concerned about the cost of skilled nursing care. Again, there is no way of giving you a simple answer without more facts.

Please feel free to contact me if I can be of assistance.