Planning for Incapacity

May 1, 2025

Why Powers of Attorney and Healthcare Directives Matter

Life is unpredictable. Although we all hope to remain healthy and capable of making our own decisions, it is wise to expect the unexpected. Planning for incapacity empowers the appropriate people to step in to make decisions on your behalf if you are unable to do so. Two essential tools for incapacity planning are Durable Powers of Attorney and Healthcare Directives.


Durable Power of Attorney

A Durable Power of Attorney (DPOA) is a legal document that allows you to appoint someone — called your agent or attorney-in-fact — to manage your financial and legal affairs if you become incapacitated. Without a DPOA in place, your loved ones may have to go through a costly and time-consuming process to obtain the authority to handle these matters on your behalf.


Healthcare Directives

A Healthcare Directive, also known as an Advanced Directive, allows you to specify your preferences for medical treatment and appoint someone to make healthcare decisions on your behalf if you are unable to do so. A healthcare directive has two primary components:


  1. Healthcare Power of Attorney (Healthcare Proxy). Designates a trusted individual to make medical decisions for you if you are incapacitated.
  2. Living Will. Outlines your preferences regarding end-of-life care, including life sustaining treatment.


Having these documents in place ensures that your healthcare preferences are honored and that your loved ones are not left guessing about your wishes during a crisis.


The Consequences of Not Planning Ahead

Failing to establish Powers of Attorney and Healthcare Directives can create unnecessary stress and legal hurdles for your family. Without these documents:


  • A court may need to appoint a guardian or conservator to make decisions for you, a process that can be lengthy, expensive, and emotionally draining.
  • Your family members may disagree about your medical care, leading to potential conflict.
  • Important financial matters, such as paying bills or managing investments, could be delayed or mishandled.


The Bottom Line

Planning for incapacity is a crucial aspect of estate planning. An attorney can help create and periodically update the necessary documentation. Care should be taken to incorporate these documents into your overall estate plan.

Key Advantages of New Hampshire Trusts

May 15, 2025
1. No State Income Tax One of the biggest advantages of a New Hampshire trust is that the state does not tax trust income or capital gains. This means that if your trust holds investments that generate significant returns, avoiding unnecessary state income tax can lead to significant long-term savings. 2. No State Interest and Dividend Tax As of January 1st, 2025, New Hampshire no longer imposes a state interest and dividend tax. New Hampshire irrevocable trusts do not even need to file a state return. 3. Strong Asset Protection New Hampshire offers some of the strongest asset protection laws in the country. Certain types of trusts, such as Domestic Asset Protection Trusts (DAPT), allow individuals to shield assets from creditors, lawsuits, and other financial risks while still benefiting from those assets. This can be especially valuable for business owners, professionals, and high-net-worth individuals concerned about liability. 4. Dynasty Trusts: Protecting Wealth for Generations New Hampshire allows dynasty trusts, which can last indefinitely. This is a powerful tool for families who want to pass down wealth through multiple generations in a tax-efficient and creditor-protected vehicle. 5. Flexibility Laws change, family circumstances evolve, and sometimes, older trust structures may no longer work. In many states, making changes to an irrevocable trust can be complicated, if not impossible. New Hampshire has one of the most flexible legal frameworks for modifying or updating trust terms without excessive red tape. This means your trust can adapt to changing needs as time goes on. New Hampshire also allows for divided and directed trusts. These approaches allow trust management duties to be allocated among multiple individuals or entities, instead of all responsibility on one individual or corporate trustee. 6. Quiet Trusts: Keeping Things Private New Hampshire allows quiet trusts, whereby you can create a trust without notifying the beneficiaries immediately. This can be reassuring for individuals who want to keep their estate plans private or to postpone informing beneficiaries until they reach a certain level of maturity and financial responsibility.

Avoiding Probate with Revocable Trusts: A Brief Guide

April 15, 2025
When it comes to passing on your assets after you are gone, one of the biggest concerns many people have is probate. Probate is the process of managing and distributing a deceased person’s assets through a court proceeding. Probate can be time-consuming, expensive, and stressful for loved ones. Fortunately, there’s a way to sidestep much of these difficulties — by using a revocable trust. What Is Probate, and Why Do People Want to Avoid It? Probate is the court-supervised process of settling an estate after someone passes away. The process involves verifying a decedent’s Will, paying the decedent’s debts, and distributing net assets to heirs. Probate can pose issues for your loved ones: It’s Time-Consuming . Probate takes months or even years, delaying inheritances to your beneficiaries. It’s Costly . Court fees, attorney costs, and other expenses can significantly reduce the value of your estate. It’s Public . Because probate is public, your personal affairs are available for everyone to see. How a Revocable Trust Avoids Probate A revocable trust is a legal arrangement for holding your assets while you’re alive and transferring them directly to your chosen beneficiaries after you pass, without the need for probate. A revocable trust is sometimes called a “will substitute.” Here’s how it works: You Create the Trust . You (the settlor or grantor) set up the trust and transfer ownership of assets (such as real estate, bank accounts, or investments) into it. You Control the Trust . Because the trust is revocable, and you are the trustee, you retain full control of your assets. You can add or remove assets, change beneficiaries, or even dissolve the trust entirely if your circumstances change. Your Successor Trustee Takes Over – Upon your passing, the successor trustee (someone you’ve chosen in advance) steps in to manage and distribute the assets according to the instructions you’ve outlined in the trust, without the need for a probate court’s involvement. Benefits of a Revocable Trust Avoids Probate . Because the trust owns the assets, these assets do not need to go through probate, avoiding unnecessary cost and delay. Protects Your Privacy . Unlike a Will, a trust remains private. You Keep Control. You control the assets in the trust, and you can amend the trust in the same way you could rewrite a Will.  A revocable trust is a powerful estate planning tool and a mainstay of modern estate planning. Properly establishing the trust and structuring your affairs to avoid probate should be undertaken with the careful guidance of an experienced attorney.