Estate Planning in Maine: The Four Documents That Matter

Estate planning sounds like something for wealthy people. It isn’t. If you’re an adult with anyone who depends on you, or anything you’d like to go to a particular person, you need a plan. For most Maine families, that plan comes down to four things.

1. A will

Your will says who gets your property, names the Personal Representative who will handle your estate, and, for parents, names a guardian for minor children. Without one, Maine’s intestacy rules decide for you. We go into more detail in Why Every Maine Adult Should Have a Will.

2. A durable power of attorney

This document names someone to handle your money and property if you can’t, because of an accident, a stroke, or dementia. They can pay your bills, deal with the bank, manage your house, and file your taxes.

Without one, your family may have to go to probate court to have a conservator appointed. That takes time and money, often at the worst possible moment.

3. An advance health care directive

This names a health care agent to make medical decisions for you if you can’t speak for yourself, and lets you write down your wishes about life support and end-of-life care. It also spares your family from guessing, or arguing, about what you would want.

4. Up-to-date beneficiary designations

Retirement accounts, life insurance, and payable-on-death bank accounts pass directly to the people named on the account, no matter what your will says. If your ex-spouse is still listed on a life insurance policy from twenty years ago, that’s who gets the money.

Check these forms whenever you update your will, and after any marriage, divorce, birth, or death in the family.

When a trust makes sense

A trust isn’t on the list of essentials for everyone, but it’s the right tool for some families. It can keep property out of probate, manage money for a young or vulnerable beneficiary, or hold a camp that several relatives will share. See Wills or Trusts? Choosing the Right Tool in Maine.

Taxes

Most Maine families won’t owe estate tax. But Maine has its own estate tax, and its threshold is much lower than the federal one. If your estate is large, including the value of a home, land, retirement accounts, and life insurance, it’s worth planning for.

Keep the plan current

An estate plan isn’t a one-time project. Review it every few years, and whenever your life changes: marriage, divorce, a new child or grandchild, a move to Maine, a new business, or a big purchase or sale.

Let’s put your plan together

Gray & Palmer has helped people in Bangor, Brewer, and the surrounding towns plan for the future for more than forty years. We’ll keep it as simple as your situation allows.

Call (207) 945-5502, or visit our wills, trusts, and probate page.