Types of Income You May Have Forgotten to Include in Your Will
When it comes to estate planning, most people think of streams of income that are typical, such as current employment, retirement plans, and bank accounts. These obviously need to be included. But, there are other, less obvious types of income that some people forget. When you work with an experienced Massachusetts estate planning attorney, they will dive into the details and make sure that you’ve addressed these lesser-known income streams and will help you determine how they will be treated when it comes to taxes, inheritance, and other state and federal laws.
Income comes in many forms. A few of the “frequently forgotten” forms include:
Annuities: If you are receiving payments from an annuity, this can be considered income.
Gifts from others: There are times when certain “gifts” would not be passed to your beneficiaries but would go to the benefactor’s alternate beneficiary. This needs to be sorted out and addressed in your plan.
Royalties: If you are collecting royalties on work that you created at any point in your past, it is considered income and should be planned for in your estate plan.
Lottery winnings: If you were lucky enough to have won money in the lottery, you’ll need to consider this income and decide what to do with it when you pass.
Anticipated property: You may also want to note if there is property that you expect to receive, such as an inheritance. Whether or not this is considered part of your estate is a question that you will answer with your estate planning lawyer. Another anticipated income stream might exist if you are the beneficiary of an insurance policy or have your name on a transfer-on-death title.
If you have a will that does not include a plan for these types of income streams, make an appointment with an experienced Massachusetts estate planning attorney. That way, you can decide what happens to the assets you worked so hard to build. If we can help you get started, contact us at (508) 532-8689 and ask to schedule a consultation in our Framingham office.