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.
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.