Middlesex County Trust Lawyer

Creating a trust is a powerful step in ensuring your assets are protected and your wishes are honored. In Massachusetts, trusts are used not only to minimize estate taxes but also to provide privacy, protect beneficiaries, and avoid probate. At Mark Liam Gannon, Attorney at Law, we guide individuals and families in Middlesex County through the process of establishing, modifying, or administering trusts. Contact a knowledgeable and dedicated Middlesex County trust lawyer from Mark Liam Gannon, Attorney at Law, for an initial consultation today.

Trusts in Massachusetts

A trust is a legal arrangement where one party, the “grantor” or “settlor,” transfers assets to a separate legal entity or individual, the “trustee,” to hold and manage for the benefit of a third party, the “beneficiary.” This structure can be highly flexible and tailored to suit a wide variety of estate planning goals.

Massachusetts law recognizes several different types of trusts, and the right one for you will depend on your objectives, the nature of your assets, and your long-term intentions for those assets. The most common types are as follows:

• Revocable Living Trusts: These are created during the grantor’s lifetime and can be altered or revoked at any time. They are often used to bypass the probate process and maintain privacy.
• Irrevocable Trusts: Once established, these cannot be modified or dissolved without the consent of the beneficiaries. Irrevocable trusts offer greater protection from creditors and can help reduce estate taxes.
• Testamentary Trusts: Created through a will and activated upon the death of the grantor, these trusts are often used to manage inheritance for minor children or individuals with special needs.
• Special Needs Trusts: Designed to provide for a disabled beneficiary without disqualifying them from public assistance programs.
• Charitable Trusts: These support charitable causes and may provide tax benefits to the donor.
• Spendthrift Trusts: Used to protect beneficiaries who may not be financially responsible by restricting their access to the trust principal.

What Constitutes a Valid Trust in Massachusetts

Massachusetts follows the Uniform Trust Code, which outlines the requirements for establishing a legally enforceable trust. To create a valid trust in this state, several elements must be present:

• Intent: The person creating the trust must clearly intend to establish a trust. This intent should be expressed in a written document known as a trust instrument.
• Trust Property: A trust must contain some form of property or assets. These assets can range from cash and investments to real estate or business interests.
• Trustee: A trustee must be named to manage the trust assets. The trustee has a fiduciary duty to act in the best interests of the beneficiaries, follow the terms of the trust, and comply with Massachusetts trust law.
• Beneficiaries: A trust must have identifiable beneficiaries—individuals or entities that will benefit from the assets placed in trust.
• Lawful Purpose: The trust must be created for a legal and not against public policy purpose.

Massachusetts also requires that the trust document be signed and, in many cases, notarized. While not all trusts must be filed with a court or recorded publicly, they must be properly documented and maintained. A lawyer can ensure that your trust is compliant with state law and structured to achieve your goals effectively.

The Importance of Creating a Trust

There are several reasons people choose to incorporate trusts into their estate plans. One of the most common is probate avoidance. Probate is the legal process of validating a will, and it can be time-consuming and costly. Assets placed in a properly drafted trust typically do not go through probate, which means they can be distributed to beneficiaries more quickly and with less expense.

Trusts also offer privacy. Unlike a will, which becomes a matter of public record when filed with the court, a trust does not usually become public. This can be especially important for individuals who wish to keep their financial matters private or protect their heirs from unwanted attention.

For families with minor children, a trust can ensure that assets are managed by a responsible adult until the children are old enough to handle them. Trusts can also protect assets from creditors, lawsuits, or divorce settlements, which is particularly beneficial in high-asset estates or blended families.

Another major benefit is tax planning. While Massachusetts does not currently have a gift tax, it does have an estate tax that applies to estates valued at over $2 million. Certain types of irrevocable trusts can be used to reduce or eliminate estate tax liability by removing assets from the taxable estate.

Trusts are not only for the wealthy. They are practical, customizable tools that can benefit anyone who wants to ensure that their assets are managed and distributed according to their wishes, with minimal interference from courts or other outside parties.

Contact an Experienced Massachusetts Trust Lawyer

Setting up a trust is not a one-size-fits-all process. The laws governing trusts in Massachusetts are detailed and nuanced, and a misstep in creating or funding a trust can lead to costly disputes or unintended consequences. Whether you’re planning for your family’s future and creating your own trust, managing an inheritance, or serving as a trustee, working with a knowledgeable estate planning lawyer is essential.

At Mark Liam Gannon, Attorney at Law, we have extensive experience assisting Middlesex County residents with trust creation, trust administration, and trust litigation. We take the time to understand your unique needs and tailor a strategy that protects your legacy and gives you peace of mind. If you’re ready to create a trust or have questions about your options, contact our office today to schedule a consultation.