Trusts have become an important facet of estate planning due to their ability to avoid probate proceedings, tax treatments and other benefits.
To create a Revocable Living Trust in Massachusetts, you transfer the ownership of your assets from yourself to the trust, where they are managed by a trustee under the direction of the trust document. Irrevocable trusts are powerful estate planning tools, but many people do not feel comfortable permanently giving up control of their assets. Revocable trusts, also called living trusts, are useful estate planning instruments that allow you to retain control of your assets at all times. Trusts must be properly formed and executed in order to meet their estate planning goals, so it’s important to work with an experienced Fall River, Massachusetts estate planning firm that has successfully created estate plans. The Botelho Law Group is the top estate planning attorney in Fall River Massachusetts. Call (888) 269-0988 to schedule a free confidential consultation.
Massachusetts Revocable Trusts Skip Probate
Probate is the court’s supervision of the distribution of assets based on a will or the laws of intestacy, if there is no will. The court will appoint a personal representative who will be responsible for doing an inventory of the assets, giving notice to creditors, filing tax returns for the estate, paying creditors and taxes for the estate and then, finally distributing the assets to beneficiaries. This process creates a public record of your assets and liabilities, and can be held up by anybody with standing to contest your will. One of the major reasons people choose to create a revocable trust is avoiding what can be a lengthy, tedious, expensive and public process. A revocable living trust creates the legal fiction that you no longer own your assets, allowing them to pass to your chosen beneficiaries without the need for probate. If you’re thinking about creating a revocable trust as part of your estate plan, it’s important to work with an experienced and reputable Fall River, Massachusetts estate planning attorney. The Call (888) 269-0988 to schedule a free confidential consultation.
How Does A Revocable Trust In Massachusetts Operate?
To create the trust, you will transfer the ownership of your assets such as your home, your vehicle, your boat, your art collection, your brokerage account and your checking account to the trust. Most revocable trusts are simply named for the person that creates the trust, so if your name is “Sam Donovan,” the ownership of your assets will be changed to “The Sam Donovan Trust.” Most married people will use both spouses’ names, such as “The Linda and Sam Donovan Trust.” You do not need a third party to be the trustee of a revocable trust, so individuals are usually the trustee of their trust, “Sam Donvan, Trustee of the Sam Donovan Trust,” or co-trustees “Linda and Sam Donovan, Co-Trustees of the Linda and Sam Donovan Trust.” The creator(s) of a revocable trust may change or revoke the trust at any time, making this a very flexible estate planning option. Your living trust will appoint a successor trustee, and specify what beneficiaries will receive the assets of the trusts upon your death. For married couples, upon the death of one spouse, the assets will pass to the other spouse, and the trust will be amended to reflect the new circumstances. Massachusetts law allows a beneficiary to also serve as successor trustee, and co-trustee siblings are a common practice. The trust can be drafted so that the successor trustee(s) distribute the assets to the beneficiaries and dissolve the trust, but it’s sometimes beneficial to keep the trust in place. If you have questions about revocable trusts, The Botelho Law Group, the top estate planning attorney in Fall River Massachusetts will patiently guide you through the process. Call (888) 269-0988 to schedule a free confidential consultation.
Protect Your Beneficiaries With A Spendthrift Trust
A revocable spendthrift trust that protects the principle and pays out income and distributions to your beneficiaries is sometimes preferable to distributing the assets in a lump sum after your death. This is especially important if you suspect one or more of your intended beneficiaries does not have a talent for managing money, and/or has problems with alcohol, drugs or gambling. It can also protect the principle if your beneficiary has a contentious divorce, partnership dispute or is sued for medical or legal malpractice.
How Revocable Trusts Can Reduce Estate Taxes
If you live in Massachusetts, have more than one million dollars in assets and are married, a revocable trust will usually save you money on estate taxes. In Massachusetts, the first million dollars of assets is exempt from estate tax, but if there is more than a million dollars in assets, the TOTAL amount is taxed. For example, Jane and David are married and have assets of two million dollars. When Jane dies, leaving everything to David, there is no estate tax levied due to the spousal exemption. Now Jane has two million dollars in assets subject to estate tax when she dies. A properly constructed AB revocable trust created while David is still alive can prevent the estate from being subject to estate tax by creating two trusts, each one containing one million dollars or less.
Massachusetts and Rhode Island Estate Planning Attorney
Revocable trusts are an important estate planning tool that is becoming increasingly popular. In order to be successful, it must be carefully drafted and properly executed by an experienced estate planning attorney. The Botelho Law Group, the top estate planning attorney in Fall River Massachusetts will patiently guide you through the process. Call (888) 269-0988 to schedule a free confidential consultation.
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Joseph F. Botelho, Esq.
BOTELHO LAW GROUP
Attorneys At Law
901 Eastern Ave.
Fall River, MA 02723