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Probate
This is the name for the process in the Probate Court through which the ownership of your assets passes to your heirs. It includes the collection of your assets, the payment of your bills and the distribution of your estate. It only covers what you own outright, not joint property, trust property or life insurance proceeds.

Will
Your will is a legally-binding statement of who will receive your property at your death. It also appoints a legal representative to carry out your wishes. However, the will only covers probate property, not joint property, trust property or life insurance proceeds.

Trust
A trust is a legal entity under which one person -- the "trustee" -- holds legal title to property for the benefit of others -- the "beneficiaries". The trustee must follow the rules provided in the trust instrument. An irrevocable trust is one that cannot be changed after it has been created. A revocable trust is one that may be changed or rescinded by the person who created it. Trusts are often used for tax planning, to provide for someone with expertise to manage assets, or to shelter assets to protect them from creditors or for long-term care planning.

Durable Power of Attorney
Under a power of attorney, you may appoint someone else to act for you when you are unable to do so yourself. The reason may be your mental incapacity or your inability to be somewhere when needed. Traditionally, powers of attorney expired upon the grantor's incapacity. However, under new law, "durable" powers of attorney continue indefinitely unless revoked.

Health Care Proxy
Similar to a power of attorney, through a health care proxy you may appoint someone else to act as your agent -- but for medical, as opposed to financial, decisions. Unlike a power of attorney, the health care proxy does not take effect until your doctor determines that you are incapable of making decisions yourself. Before that decision, your agent may make no decisions on your behalf. You may include in your proxy a guideline for your agent to use in making decisions. These may include directions to refuse or remove life support in the event you are in a coma or a vegetative state. On the other hand, your instructions may be to use all efforts to keep you alive, no matter the circumstances.

Community Spouse Resource Allowance (CSRA)
If your spouse has to move to a nursing home, you will have to pay for his or her care out-of-pocket until he or she qualifies for MassHealth. Under the MassHealth program the nursing home spouse may only have $2,000 in "countable" assets. (Noncountable assets include your home, household belongings, one car, and prepaid funeral plans.) The amount the healthy spouse is permitted to keep under the MassHealth program is known as the "community spouse resource allowance" or "CSRA." The CSRA is one half of all of the couple’s combined assets up to a cap of $95,100 (in 2005).

Minimum Monthly Maintenance Needs Allowance (MMMNA)
The MassHealth rules also govern the amount of income the community spouse is entitled to once the nursing home spouse qualifies for MassHealth. Normally, the community spouse keeps his or her income and the nursing home spouse pays his or her income to the nursing home, keeping only a $60-a-month "personal needs allowance." However, if the healthy spouse's income is low, he or she may be entitled to a share of the nursing home spouse's income. In each case where a married nursing home resident qualifies for MassHealth, the Division of Medical Assistance calculates a "minimum monthly maintenance needs allowance" or "MMMNA" for the community spouse based on his or her housing costs. This will range between a low of $1,561.25 to a high of $2,377.50 a month (in 2005). If the community spouse's own income is below his or her MMMNA, he or she will be entitled to a share of the nursing home spouse's income to make up the difference.