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.
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.
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.
Anyone in Massachusetts that cares for a family member with special needs lives with the concern of how that loved one will be cared for if something happens to him or her. Sometimes, it's enough just to get through the day, let alone consider the future, but it is something that needs to be considered. Setting up a special needs trust can alleviate at least some of the concern for that family member.