Trusts
Whether you need a trust depends on your estate planning goals and your unique situation, since each client’s needs and goals differ. Trust planning can help you avoid the hassle and expense of going through probate, assuming your estate plan is well-drafted and properly executed. Of the many trust types available, our clients most often choose a Revocable Trust, also called a Living Trust or Simple Trust.
A Revocable Trust is a trust you create during your lifetime. It gives the grantor, the person creating the trust, the power and flexibility to control their assets. Because you create this type of trust during your lifetime, you can also serve as its initial trustee. The trustee administers the trust based on the grantor’s instructions, including who should receive the assets.
Serving as both grantor and trustee offers a key benefit: you maintain complete control over your assets during your lifetime. You can freely transfer assets in and out of the trust, and you can change or revoke the trust at any time. Creating a trust offers many benefits, but it also has some downsides. For a Revocable Trust to function as designed, often to avoid probate, you need to transfer any real estate titled in your name into the trust, so the trust owns the property. Beyond real estate, you should also transfer bank accounts, stocks and bonds, and business interests into the trust.
If you don’t transfer property and other assets into the trust during your lifetime, they will still need to go through probate. Setting up a trust can also be costly, depending on your unique needs. However, if you pass with only a will, your Personal Representative will likely need a probate attorney to help with the probate process, which can also be costly. Given these considerations, it might make sense to pay a bit more now for an estate plan tailored to your needs, rather than leaving your Personal Representative to hire a probate attorney later.
Regardless of whether you have a trust, you should always have a will to make sure your estate goes to the people you choose. If you pass without a will, the state follows a rigid set of predetermined rules about who inherits your estate, rules that might not match who you had hoped would inherit.
If you decide to create a Revocable Trust, we will also draft a different type of will, commonly called a pour-over will. The pour-over will works hand-in-hand with your trust. Any remaining assets in your estate that the trust did not own at the time of your passing “pour over” into the trust. A pour-over will still needs to go through probate, but the process is less complex than probate without a trust. Because avoiding probate is one of the primary goals of a Revocable Trust, you must transfer your property into the trust during your lifetime.
The main difference between a Revocable and an Irrevocable Trust comes down to control over your assets during your lifetime. With a Revocable Trust, the grantor has complete control of their assets and can revoke the trust entirely if they choose. An Irrevocable Trust, on the other hand, does not let the grantor revoke it or transfer assets back out. Instead, the trustee controls and distributes the trust estate according to the trust’s instructions.
Despite this loss of control, Irrevocable Trusts benefit people who are comfortable giving up control over their assets, especially those who need to plan for long-term care, such as MassHealth. Their rigidity also has an upside: Irrevocable Trusts are more likely to keep creditors from reaching trust assets.
Another common type of trust is a Special Needs Trust, a necessary estate planning tool in limited circumstances. This trust provides for a disabled individual’s needs without jeopardizing their eligibility for government benefits.
Whatever type of trust you choose, or if you choose no trust at all, have an experienced attorney draft your estate plan around your particular needs.
Please call our office today to schedule a time to speak with one of our attorneys about your estate planning needs at (978) 637-2048, or email office@heralawgroup.com.
Practice Areas 209C Actions in Family Court Alimony (Spousal Support) Appeals Child Custody Child Support Contempt Actions in Family Law Divorce Domestic Violence & Restraining Orders Estate Planning Modification Actions in Family Law Guardianships Guardian Ad Litem Investigations LGBTQ+ Representation Mediation & Collaborative Law Paternity Actions in Family Law Prenuptials & Postnuptials Probate Law
LET US HELP YOU
At Hera Law, we understand that hiring an attorney is a big decision. Call us for a free initial 15 minute phone consultation.
978.637.2048 office@heralawgroup.com
At Hera Law, we understand that hiring an attorney is a big decision. We welcome you to call us for a free initial 15 minute phone consultation.
978.637.2048
office@heralawgroup.com
