The old saying, "you can't take it with you," is true. However, that does not mean that Massachusetts residents cannot retain control over with happens to it. For instance, some people may need nothing more than a will to meet their goals, but others will need something else -- such as a revocable trust -- in order to ensure that their assets are protected and distributed in accordance with their wishes.
Massachusetts residents may not realize that it is not only the wealthy who benefit from the use of trusts. In reality, anyone can benefit from using a trust as part of a comprehensive estate plan. One group of people who could benefit from the use of a trust, such as a revocable trust, are single parents.
Massachusetts residents set up living trusts -- which is a trust created during the life of its creator -- for a variety of reasons. For instance, a revocable trust (changeable) or irrevocable trust (unchangeable) can be created to provide for loved ones who are too young or otherwise incapable of dealing with financial affairs on their own. Other people may set up a trust in order to protect their assets if they become incapacitated. Some trusts are created to avoid probate, stave off creditors and avoid hefty estate taxes.
Trusts are created to hold property and provide for beneficiaries in accordance with the terms set forth therein. Massachusetts residents who choose to use trusts do so for many reasons such as avoiding probate, estate taxes or the reach of creditors. If estate taxes and creditors are not a primary issue, then using a revocable trust or irrevocable trust can help avoid probate.
Many Massachusetts residents create trusts. Whether it is an irrevocable or revocable trust, one of the most important decisions the creator of a trust can make is choosing a trustee. People are often advised to review their trusts periodically to be sure the trust complies with current law and still meets the creator's goals. However, it is also important to review whether the trustee is still the best person to administer the trust.
When moving to a new state, many issues need to be taken into consideration. One of the issues that many people may fail to consider is whether changes need to be made to a revocable trust or other estate planning documents. Every state, including Massachusetts, has its own legal requirements for these documents, which may differ from the state an individual is either coming from or to which he or she is going.
Sometimes, the terms of a Massachusetts irrevocable trust no longer adequately serve its beneficiaries, or the trust itself was not properly drafted initially. If this is the case, it may be possible to decant the current irrevocable trust under certain circumstances. The option to decant such a trust can be crucial since these trusts normally may not be changed or cancelled.
Listen to people in Massachusetts talk about estate planning long enough, and the topic of trusts will come up. However, people do not generally go into detail as to just what a revocable or irrevocable trust comprises. There are numerous types of trusts, but most fit into these two main categories.
It isn't only rich people that can benefit from using trusts. As an estate planning tool, they can be useful to anyone in Massachusetts with assets such as real estate, life insurance policies, retirement accounts and any other assets that will eventually passed on to heirs. A living revocable trust can be drafted and executed to keep those assets out of probate, reduce tax liability and otherwise protect the assets.