Legal Question in Wills and Trusts in Massachusetts

Re: trust law

A revocable trust is a component of some estate plans. Generically, "an estate plan" would consist of instruments such as wills and trusts which deal primarily with the disposition of property upon death. However, it is common practice to include powers of attorney and a health care proxy to deal with incapacity during one's lifetime in the rubric "estate plan."

A "revocable trust", also known as a "living trust", is basically a trust which can be changed or amended or revoked during the lifetime of the person who created it. They are most often used with estate tax planning for couples whose combined assets exceed e.g. $1,000,000. They have been "promoted" as a probate avoidance technique (because the trust assets do not pass through probate), though probate is not as onerous in Massachusetts as it is elsewhere.

They are generally more expensive to prepare than just a simple will.

There are situations where they are appropriate for a single person or couples who are not concerned about estate taxes. For example, when you want to set up a trust to hold your assets during your lifetime, and anticipate having a child or other trusted person take over upon your incapacity, and or when you want to have your property held in trust after your death, but you do not want the expense of having your trust overseen by the Massachusetts probate court.

Regardless of whether you need a trust, a will is always a good idea.

Please feel welcome to call for a consultation.

Re: trust law

In Massachusetts, a basic estate plan consists of a will, a power of attorney and a health care proxy. These documents appoint persons who manage financial and medical decisions in the event of incapacity during life, and the decedent's finances afterwards. Revocable trusts do not allow you to avoid probate unless the grantor (the person creating the trust) transfers assets into its ownership during lifetime.

There are certainly good reasons for doing a revocable trust, but we don't use them much in Massachusetts unless there is a taxable estate, assets outside of Massachusetts, or minor children who may inherit assets. Unlike some states where revocable trusts are routinely used (like California), the cost of probating a will are based on the services actually provided, not a percentage of the estate.

I'd be pleased to speak with you further on this topic. Please feel free to contact me at [email protected]