A living will is a legal document specifying your wishes relating to life support. It informs your family members and doctors of your decisions in the event that you not able to communicate. It is usually created in an estate plan but may also function separately. This blog includes an overview of living wills in Massachusetts.

What Living Wills Include

Living wills allow you to indicate what types of treatments you wish to have or want not to have when your condition is dire,… such as requiring life support or experiencing a terminal illness. Some requirements for living wills may differ by state, so it is important to use a local attorney. Your attorney can also provide you with additional options.

When Living Wills Take Effect

Living wills become effective only when you are incapacitated AND your condition is dire. Normally, a doctor must verify that you are in such a state. It does not apply to other less serious medical conditions such as heart attacks. For scenarios where the prognosis is not severe but you are unable to express your wishes, you may have a health care proxy that designated another party to make decisions for you. These are two independent forms and are effective under separate situations. Together, they make up an advance health care directive.

Livings Wills for Massachusetts

Living wills ensure that your wishes are observed. Situations may result from predetermined illnesses or an entirely unpredictable circumstance. It can alleviate the burden on family members or prevent them from disputing over what to do. It is best to decide when you are in the right state of mind. This was an overview of living wills in Massachusetts and is published for general reference only. Please consult with an attorney for additional information and advice.

It is useful to find out components of Massachusetts recurring mortgage payments to properly estimate home ownership costs. The acronym PITI is commonly used to remember the items included, which are principal, interest, taxes, and insurance. Not all loan payments will include all of these items. It will differ based on your specific loan.

Components Of Recurring Mortgage Payments

Principal Contributions

Principal is essentially the balance of the loan. For most loans, a portion of your mortgage payment every month is allocated towards reducing the balance, although there can be exceptions to this such as interest only loans. In the first several years of paying a loan, very little of the payment actually goes towards principal, but this increases over time.

Loan Interest

Interest is the amount billed by lenders for use of their money. The interest rate is always a yearly rate but billed monthly according to the balance of the loan. Depending on your type of loan, the rate can stay the same for the entire life of the mortgage or it can fluctuate at specific periods of time.

Municipal Taxes

Taxes are levied by Massachusetts according to the assessed value of real estate. The amounts are quoted annually but often due in installments. Overdue taxes become a lien on a property and supersede mortgage liens. Many banks will, therefore, ask homeowners to set aside funds into an escrow account to guarantee that the bills are paid. Those funds are collected monthly by the lender as part of the regular monthly payment. The lender then pays the taxes directly rather than waiting for the borrower to do so. It is a method of protecting their interests in a property.

Insurance

There are different types of insurance that can apply to a mortgage. Hazard is typically mandated and mortgage insurance varies based on the specific loan. Both may be part of monthly loan payments.

Hazard insurance protects against damages. Lenders require this insurance since the home is collateral on the loan. Insurance premiums are payable yearly and many will want funds be put into escrow (similar to tax escrow). They will then submit payments to the insurance company directly to ensure the policy remains active.

Mortgage insurance is common for mortgages higher than eighty percent of the property value or sale price. It protects the mortgage company should a homeowner stop making payments. Lenders expect that they will not recover the full balance owed if it forecloses, so the mortgage insurance covers some of their loss. Although it protects the mortgage company, the borrower can be responsible for the payments.

Knowing Massachusetts Recurring Mortgage Payments

Not all financing is structured the same and therefore not all Massachusetts recurring mortgage payments will include all of the items above. There can also be other monthly expenses such as condo fees, which are not escrowed by mortgage companies but are a significant factor in calculating total monthly home cost. Remember that exact amounts are based on a specific home and interest rate, so any preliminary estimates will likely change.

Revocable living trusts allow for changes at any time. A trust amendment can be created to edit certain provisions or beneficiaries. It is also possible to void or modify the entire contents of the trust through an amendment and reinstatement. The following is advantages and disadvantages of Massachusetts revocable living trusts.

Revocable Living Trusts

The downside of revocable living trusts are that assets in the trust are treated as personal assets. It therefore offers no special protection from creditors if you are sued. Upon death, all assets are subject to any state and federal estate taxes. Depending on your finances, these two items can result in significant risk or loss.

Reasons to Use Revocable Living Trusts

There are a few reasons why you would select revocable living trusts despite the disadvantages noted above. Below are the key reasons that many select this type of trust.

Planning for Disability

Revocable living trusts are often used to plan for future disability. Assets in a revocable trust can be managed by a trustee rather than by a court-assigned guardian in the event of mental disability. This can be an important factor when there is a family history of mental illness.

Avoiding Probate

The type of trust will determine whether the courts get involved. With revocable living trusts, assets are given directly to beneficiaries without going through a court proceeding. This shortens the transfer process and time frame.

Privacy Considerations

Because transfers take place outside of court, the trust agreement does not get filed into public record. Detailed information on your assets may therefore be kept private. The identity and assets transferred to specific beneficiaries is also not disclosed. This maintains the privacy of everyone involved.

More Advantages And Disadvantages Of Massachusetts Revocable Living Trusts

The advantages and disadvantages of Massachusetts revocable living trusts provided above was shared by Peter DaMore at Law Offices of Peter T. DaMore Jr.. For additional information on revocable living trusts and other elements of your estate plan, contact Peter at 781-229-7900 or via email at pdamore@ptdlaw.com. We can explain the benefits of revocable living trusts and irrevocable trusts and help you select the option that best accommodates your situation.

First time buyers often ask about owners title insurance, what it is, and whether they should buy it. Lenders title insurance is required with most mortgages, however, owners title insurance is traditionally optional. Buyers should consider the features and decide for themselves on whether the expense is worthwhile given the costs and coverage. The following are Massachusetts owners title insurance details.

Title Searches Are Not Perfect

Before closing, a title search is always performed by a title company. This determines that no other party has a right to the home (based on records on file) and that the title is available to be transferred to a new buyer. The title search is not fool proof and may not identify hidden risks in the title. Owners title insurance will protect you against title issues and the legal fees associated with protecting your rights to home.

Owners Title Insurance Coverage

Owners title insurance is a single charge at closing that will remain valid for the entire time that you retain ownership of the property. You can buy it at a later time, but it is normally less costly when bought at closing. The fee is based on the amount of the loan.

Massachusetts Owners Title Insurance Details and Coverage

Owners title insurance typical coverage includes…

• Misrepresentation related to the execution of past title transfers.
• Pressure on a seller or executor (of a will).
• False impersonation by those alleging to be owners of a home.
• Incorrect marital status of a seller.
• Mental Incapacity of grantors.
• Conveyance of a minor.
• Non-delivery of critical paperwork.
• Unsatisfied claims not mentioned inthe records.
• Mis-indexing at Registry of Deeds.
• Clerical glitches in recording legal documentation.
• Delivery of deeds after the death of a seller.
• Transfers executed under unauthorized powers of attorney.

Some policies may include…

• undisclosed heirs.
• Wills not properly probated.
• Incorrect interpretation of trusts.
• Birth of heirs after the date of a will.
• Incorrect property surveys.
• Inaccurate legal descriptions.
• Confusion fomr similar names.

The above information is merely an introduction. Consult a local title company for current Massachusetts owners title insurance details and pricing, as they typically vary based on the provider.