Legal Question in Wills and Trusts in Massachusetts

Re: Life tenancy

If the properties are already held in trust, then the trust, not the will, controls their disposition. You need to review the section(s) of the trust addressing what happens to the assets after your mother's death and whether the trustee or the grantor (the person who set up the trust) has the power to amend any sections of the document, and proceed from there.

There are a number of potentially quite complex financial, tax and administrative issues underlying this question. Please feel free to contact me if you would like further assistance.

Re: Life tenancy

The best way to do what your mother wants to do is to set-up three separate trusts which porvide life use to the children and then have the property pass to the grandchildren with a series of restrictions on transfer. The problem is that sometime in the future someone may need money more than the cottages.

If she is fearful of their loss in a divorce, she can restrict transfers and use a variety of trust instruments. She should discuss the matter with her current estate planner. If you or she have more questions, please feel free to conact me.

Re: Life tenancy

it sounds like your mother would benefit from a updated estate and asset protection plan so she can achieve the goals you described.I would advise that she do it now while this is fresh and eveyone is healthy.(hopefully).If you call my office we can send out a free report on how this can be done and offor further assistance.

Re: Life tenancy

The answer to your questions will depend in part on where the cottages are located, because there are tax and legal considerations which are dependent upon what state the property is located in.

As noted elsewhere, potential inheritors may not be interested in the cottages, particularly if they cannot afford the upkeep. Consequently, she will need to think through various situations, including whether to give other child the right of first refusal in the event that one of the children cannot afford to maintain them, and or would simply prefer the cash.

There are also estate and generation-skipping tax issues which might be of concern, depending upon the value of the properties. E.g., will the value of her estate exceed exemption amounts in the state or states where the property is located.

This is definitely something which merits seeing an estate planning attorney.