Trusts

Revocable Intervivos Trust

A Trust is an extremely versatile tool that you can use to hold assets ranging from your primary residence to your out-of-state vacation property to your brokerage account and life insurance policy.  Utilizing a Revocable Intervivos Trust as a vehicle for holding and distributing your assets allows you to retain control over the Trust during your lifetime, much like any other property.  Upon your death, a successor Trustee of your choosing manages your Trust according to the terms you have set.  Like a Will, your Trust may set forth a structure of distribution to your children and grandchildren and provide contingency plans for distribution.

When funded properly, a Trust is also an excellent tool for probate avoidance. This is because a Trust is a separate legal entity outside of your probate estate.  Therefore, funds held in a Trust do not have to pass to your heirs through your Will.  Instead, the Trust assets pass according to the terms of the Trust.  By utilizing a Trust, you can avoid probate and distribute your estate to your named beneficiaries without going through the time, expense and publicity of the probate process. 

Leaving all of these important considerations aside, a Trust may become the essential part of your estate plan should you own property outside of Massachusetts (or if Massachusetts is not your home state and you own property here).  If you die owning out-of-state property in your name alone, you will have to open a separate probate estate in the state where that property is located in order to transfer that property to your heirs.  On the other hand, if you place that out-of-state property into your Trust, you can avoid this onerous step, and manage your out-of-state property like any other asset, with no strings attached.

 Testamentary Trust

Some people do not want to create a Living Trust to manage their assets but would still like to leave funds “in trust” for beneficiaries who are either not good with money, incapable of managing their own affairs, or too young to receive large sums outright.  A Testamentary Trust, while not as flexible as a Living Trust, may suit these goals.  Unlike a Living Trust, a Testamentary Trust is created under your Will and only comes into being upon your death. Although you may still control the schedule of distribution under a Testamentary Trust, it does not allow you to avoid probate and the delays and expenses related to probate, nor does it protect your estate from becoming a public record.