A trust can be a stand-alone document or it can be part of a will. It allows you to decide how you want property or funds to be handled over a defined period of time. Creating a trust to protect your assets in Massachusetts is particularly important if you have special needs children or adult beneficiaries who are disabled or whose health is compromised. Since a trust is a very individual and personalized document, and a very important one, it requires a competent attorney skilled in the area of trust drafting.
Structure of Trusts
Trusts can cover property that is real, tangible, or intangible. Trusts are managed by one or more persons known as trustees for the benefit of those designated by the creator of the trust. For example, if you have underage children, you may designate an adult as a trustee to manage the assets for the benefits of your children. It is important to note that trustees hold legal title to the property, but they do so only on behalf of the beneficiaries. Beneficiaries can be individuals or a charity or organization.
Types of Trusts
There are different types of trusts, depending on your particular needs. Revocable Trusts are often used for disability, privacy, and to avoid probate through the court system. However, they are not shielded from estate taxes. Irrevocable trusts can protect your assets from creditors and do offer some benefits from estate taxes. Creating a trust to protect your assets in Massachusetts involves selecting the right type of trust for your particular situation and based on your ultimate goals.
More on Creating a Trust to Protect Your Assets in Massachusetts
Trusts can be very beneficial, but they can also be complex. It is extremely important that you understand the different options, and the pros and cons of each. When done properly, trusts can help you avoid a lengthy and expensive probate process. Schedule a consultation to learn more about creating a trust to protect your assets in Massachusetts.