In 2003, Mary attempted to engage in elder law planning and executed a deed reserving a life estate for herself and giving her daughter, Carla, a remainder interest in the property. However, the wrong address was listed on the deed. In 1989, Mary, at age 65, began receiving Medicaid benefits through MassHealth. She continued receiving these benefits until her death in 2018. At Mary’s death, Carla noticed the mistaken deed and moved a Massachusetts court to reform the deed on the grounds of mutual mistake. Would the court oblige Carla? The court first theorized that it must decide if reforming the deed would impact the state’s estate recovery efforts.

By PEGGY HOYT, JD, MBA, BCS

Planning for four-legged loved ones (kids in fur coats) can be just as challenging as planning for two-legged loved ones (minor children). Clients typically ask, “Do I need a trust or a will?” The answer, of course, is, “It depends.” 

A step-up in basis, or more accurately, a basis adjustment, has been a cornerstone of many estate plans throughout the years. Let’s take a look at what a basis adjustment is, how a step-up in basis works, and some recent news about its possible demise.