Massachusetts residents may create a revocable or “living” trust and use it to protect their assets. As your property or income changes, a living trust allows you to transfer assets to it until your death. After death, your trust becomes irrevocable, and your assets may no longer transfer to it.
Kiplinger’s Personal Finance suggests prioritizing assets based on your intended beneficiaries. Because a living trust does not require probate, you may choose to transfer your most important assets to it. If you become incapacitated, you and the individuals named as beneficiaries may benefit from the assets in your trust.
Managing revocable trusts and their real estate assets
By creating a living trust, you may name a trustee to manage the assets transferred to it. You could also serve as your own trustee. You may wish to consider naming an alternative or successor trustee to take over and handle the trust’s affairs if you become ill or incapacitated.
After setting up a trust, many grantors transfer their real estate holdings into it. You could transfer your primary residence in addition to any other homes or commercial properties that you own. Because the trust owns your real estate, its trustee may manage your properties and generate income for your beneficiaries.
Transferring financial assets and other valuables to trusts
Common assets transferred to trusts include stocks, bonds and financial instruments. You could also transfer securities issued by public corporations or a closely held business. A limited liability company, however, may require a vote from its members to change the ownership from you to your trust. Other valuable properties, such as vehicles, artwork or musical instruments, could also transfer to your trust.
A revocable or living trust offers families and individuals a way to protect their assets. Once created, you may transfer valuable properties to it as often as you wish.
