Southeastern Massachusetts Trusts Attorney

Man and woman creating a trust online

If you’re looking for ways to make your estate plan more efficient, a trust could be the answer. Trusts offer many benefits, including potentially reducing estate taxes and helping your heirs skip the probate process, saving them time and money. While some believe trusts are only for wealthy families, they are a smart option for many Massachusetts families.

As a family-run law firm, the team at Surprenant & Beneski understands your desire to pass as much of your estate to your heirs as possible. Our Massachusetts trusts and estate planning lawyers can help you set up the right type of trust for your needs and administer the trust when you pass away. Read on for more information about trusts and why they are a crucial component of a comprehensive estate plan.

What Is a Trust?

A trust is a legal arrangement where one person, called the trustee, manages assets on behalf of someone else, called the beneficiary (or beneficiaries). When you create a trust, you place your assets—such as money, property, or investments—into it, allowing the trustee to manage those assets according to your wishes.

By consolidating your assets in this manner and giving control to someone who will carry out your wishes, trusts provide more control over how and when your assets are distributed after your death. These benefits make trusts a key part of many estate plans.

The Estate Planning Benefits of Trusts

It’s crucial to understand that there are different types of trusts, each with its own rules and trade-offs. The right trust for you depends on your specific goals, such as protecting assets, reducing taxes, or ensuring a smooth transfer of wealth. That said, some general benefits of trusts in estate planning include:

  • Avoiding Probate: Placing your assets in a trust allows your assets to bypass the probate process, saving time and money for your heirs.
  • Controlling Distribution: When you create a trust, you can set conditions on how and when your beneficiaries receive their inheritance.
  • Reducing Estate Taxes: Trusts can help minimize the taxes your estate will owe. This is a particular concern for many Massachusetts residents, given the state’s high tax rates on estates over a certain threshold.
  • Protecting Privacy: Unlike wills, trusts are not part of the public record. Creating a trust can help you keep your affairs confidential.
  • Safeguarding Assets: Trusts can shield your assets from creditors and legal disputes, ensuring they go where you intend.

Different Kinds of Trusts

Our firm can help you decide on and create the right trust for your needs. Let’s explore some common types of trusts in detail.

Revocable or “Living” Trusts

This type of trust allows the person who creates it (the grantor) to change or revoke the assets during their life and easily transfer them to their beneficiaries after death without going through probate. A potential downside of a living trust is that it doesn’t offer as much protection from creditors or estate taxes.

Irrevocable Trusts

Once established, an irrevocable trust cannot be changed or revoked. The assets in the trust are removed from the grantor’s estate, offering significant estate tax and creditor protection. The downside is that the grantor loses control over the assets once they enter the trust.

Testamentary or “Springing” Trusts

This type of trust only takes effect after the grantor passes away, as their will creates the trust. A springing trust can help grantors better control the distribution of their assets, but because it’s tied to the will, the trust must go through probate.

Charitable Trusts

As the name suggests, the purpose of a charitable trust is to benefit a philanthropic organization. These trusts provide income to the grantor or other beneficiaries during their lifetime, with the remaining assets going to charity. Charitable trusts can reduce estate and income taxes, but they are best suited for those wishing to donate a significant portion of their assets.

Special Needs Trusts

These trusts allow individuals to provide for a loved one with a disability without disqualifying them from government benefits like Medicaid or Supplemental Security Income (SSI). However, strict rules govern how the funds can be used to avoid jeopardizing the beneficiary’s benefits.

Marital Trusts

Also called an “A Trust,” a marital trust is created for a surviving spouse’s benefit. It provides income to the spouse for life, with the remaining assets going to other beneficiaries after their death. This trust can help reduce estate taxes between spouses.

Qualified Terminable Interest Property Trusts (QTIPs)

A QTIP allows the grantor to provide income for a surviving spouse while maintaining control over how the remaining assets are distributed after the spouse’s death. This can be particularly helpful in second marriages where the grantor wants to ensure their assets eventually go to children from a previous relationship.

Qualified Personal Residence Trusts (QPERTs)

QPERTs allow you to transfer your home into a trust while continuing to live in it for a set number of years. This reduces the home’s value in your estate, lowering potential estate taxes. The downside is that if you pass away before the trust’s term ends, the tax benefits go away.

Need Help Setting Up a Trust? Call Surprenant & Beneski Now

At Surprenant & Beneski, we understand that setting up a trust can feel overwhelming, but we’re here to make the process easier. Our team will guide you through each step so you’ll know your trust aligns with your goals and protects your family’s future. Our lead partners, Daniel Surprenant and Michelle Beneski, are certified as elder law attorneys by the National Elder Law Foundation—two of only 30 in Massachusetts. You can trust us to provide the experienced legal support you need. Call us today or complete our contact form to start planning for your family’s future.