2024 was a groundbreaking year for Estate Planning. Both Massachusetts and Connecticut saw some major changes in how parents and testators may leave assets to their legacy.

Here are the biggest changes you need to know about:

Massachusetts Raises Estate Tax Exemption To $2m

Until recently, if you died with an estate valued over $1m in Massachusetts, you’d have to pay an enormous amount in taxes. This year Massachusetts raised the threshold to $2m. Many older families who were “house rich” but middle class were affected by the old law. Now, those who fall into the middle class but “house-rich” category, can breathe easier.

Connecticut Allows Ex-Con Heirs To Keep $50k Of Inheritances

Connecticut has a law that allows the state to recapture the costs of an ex-cons incarceration by seizing their inheritance. This left a lot of ex-cons empty handed. Connecticut changed the law in July to allow ex-cons to keep up to $50k of their inheritances.

Massachusetts Curbs Medicaid Estate Recovery

As you may know, Medicaid can seize your house after you die. Massachusetts law used to allow Medicaid to recapture all healthcare costs, but with the 2024 law change now Medicaid can only seize your assets to repay long term care.

Massachusetts Reverses Long-Standing Wedding Ring Dispute Law

The Supreme Court of Massachusetts reversed an old law that said if a person was at-fault for breaking off an engagement, they couldn’t get the engagement ring back. This year, the Supreme Court overturned that law and now goes by a no-fault system, meaning it doesn’t matter who broke off the engagement – if it was broken off then the fiance gets the ring back.

Connecticut Allows Domestic Asset Protection Trusts

Connecticut has allowed the creation of Domestic Asset Protection Trusts – trusts that avoid creditors while allowing the beneficiary to still spend money on personal items. These trusts are popular in business friendly states like Delaware and were just introduced in Connecticut.

How An Estate Plan Can Help You

An estate plan ensures your assets are distributed according to your wishes, avoiding probate delays and unnecessary expenses. It also protects your wealth from creditors, secures a trusted executor to manage your estate, and helps plan for potential Medicaid or long-term care costs.

Avoid Probate: Streamlines the distribution of your assets, reducing court costs, delays, and public scrutiny.

Executor Authority: Clearly designates a trusted person to manage and distribute your estate.

Control Asset Distribution: Ensures your assets go to the people or causes you choose, not default state laws.

Protect Assets from Creditors: Shields wealth from potential claims by creditors or lawsuits.

Medicaid Planning: Safeguards assets from being used to cover long-term care expenses, ensuring inheritance for loved ones.

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