Living Trust Massachusetts Guide
The time and money it takes to go through probate can be an inconvenience to your loved ones after you pass. If you want to transfer your assets and properties before you die, you can create a will or a living trust.
This article will serve as a guide about living trusts in the state of Massachusetts. If you’re looking to start estate planning, continue reading to learn why a revocable living trust may be the best option for you!
What Is a Living Trust?
A living trust is a document that is created by a grantor. The grantor places assets into the trust and assigns a trustee(s) to oversee the transfer of the assets to chosen beneficiaries. There are two main types of trusts:
- Revocable living trust - Can be easily modified once legalized. Assets and properties can be added in or removed; trustees and beneficiaries can be modified.
- Irrevocable living trust - The author of the trust relinquishes all control over assets. Trust terms cannot be changed.
A living trust includes the transfer terms of assets and property, which takes into effect shortly after the grantor’s death unless otherwise outlined. The trustee will be responsible for ensuring the terms of the trust are met and the beneficiaries receive what is entitled to them. If you are married and your assets are uncomplicated, setting up a joint living trust can be a good option.
Let’s learn the difference between a living trust and a will below.
Living Trust vs Will
A will is more well-known to the general public than a living trust. While both are estate planning documents, there are unique differences to both:
|Costs less money and time to create||Costs more money and time to create|
|Costs more money and time to enforce||Costs less money and time to enforce|
|Undergoes probate||Avoids probate|
|Does not ensure privacy and protection||Can ensure privacy and protection|
A will contains the author’s desires on what will happen to his or her assets after death. After the author’s death, the courts will refer to the will to begin the probate process. The process can take up to 12 to 18 months and consists of authenticating the author’s death, filing tax returns, and distributing assets.
Massachusetts is one of eighteen states that has adopted the Uniform Probate Code, which overall, simplifies the probate process for uncomplicated estates. If your total estate value is less than $25,000, undergoing probate with a will may be more suitable than creating a living trust.
Do I Need a Living Trust?
If you live in Massachusetts and your estate is valued over $25,000, a living trust can be a great option. A revocable living trust gives you power over your assets while you are alive and after your death. The assets under a revocable trust belong to you during your lifetime. When you die, your chosen trustee will take control and ensure your assets are handed to the correct beneficiaries at the time you designated.
Living trusts cannot be easily contested. They also provide protection since transfer of property is not publicly listed (unlike wills). If your estate is worth over $1 million, a living trust will not shield you from Massachusetts estate taxes. Estates over $5 million will get you a federal estate tax.
How to Create a Living Trust in Massachusetts
Here’s a list of reputable estate planning law firms in Massachusetts:
- Herbst Law Group
- Monteforte Law
- Law Offices of Brian E. Barreira
- Infinity Law
- Law firm of George C. Malonis
- Baron Law
- George and Davis
Get a Revocable Living Trust in Minutes
If you’re looking for a pocket-friendly yet trustworthy way to create a living trust, DoNotPay has got your back! You can have a downloadable copy of your revocable living trust ready in minutes when you:
- Log-in to DoNotPay and click on the Revocable Living Trust product
- Provide your contact details and the state you live in
- Choose your trustees and beneficiaries
- Add the assets and properties that will go under the trust
- Specify what will happen to assets not listed in the trust
That’s it! Your revocable living trust can be reviewed in seconds after you submit your request. The document is not legally binding until you get it notarized, so feel free to make changes if needed.
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