A Massachusetts Living
trust is an arrangement where assets are given to a trustee
to hold and manage for your benefit or the benefit of your designated
- a Massachusetts living trust can be used to:
assets in order to produce income for a beneficiary, conserve assets
or provide for growth of the assets;
estate taxes (AB Trust);
use or disposition of assets long after you are deceased;
for spouse and issue;
for children during minority or if disabled; and
beneficiaries (other than yourself) from creditors.
Who should have a Living
Trust? In addition to the benefits described above, People
real estate in another State a living trust eliminates the need
for an out-of-State probate);
anonymity and privacy in their estate plan (no one will see
who your beneficiaries are);
avoid the large expense and delay of Probate Court;(you are
really pre-probating your estate so transfers are immediate)
A living trust is created while you are alive but
it can be funded while you are living or after your death. If funded
before you die, the assets in the trust will not pass through probate
and to that extent will avoid the probate process. You can also
be a beneficiary of this type of trust.
There are three fundamental
considerations in setting up a valid living or revocable
trust in Massachusetts. Each is an important element:
First, your trust must
be drafted properly, by an Attorney - that is it should
fit your particular situation rather than be a 'boilerplate' generic
form that misses the mark and does not fit your estate objectives.
That is why the FTC
(The Federal Trade Commission) warns that you "Explore
all your options with an experienced and licensed estate planning
attorney". The FTC warns against the following
consumer rip offs: "Some unscrupulous businesses are advertising
seminars on living trusts or sending postcards inviting consumers
to call for in-home appointments to learn whether a living trust
is right for them. Other businesses are advertising living trust
"kits": consumers send money for these do-it-yourself
products, but receive nothing in return. Still other businesses
are using estate planning services to gain access to consumers'
financial information and to sell them other financial products,
such as insurance annuities."
Second, your living trust
should be properly executed. The Grantor and/or Trustee
should sign in front of a Notary.
Third, your living trust
must be properly funded. That is the assets must be placed
into the trust at some point in time or the trust is useless. Deeds
to transfer property may have to be prepared and filed with the
registry of Deeds in your county.
Call us for help setting up your Living Trust, or
use our simple questionnaire
to begin your living trust.