Living Trust Attorney in Eastern Massachusetts
A trust has significant tax, governmental assistance, probate and personal ramifications and long-term effects once invoked.
Creating a Revocable (Living) Trust
A revocable trust, also called a living trust, is in place as long as long as you are alive. You can revoke the trust or make changes through a trust amendment at any time.
One of the biggest benefits of a revocable trust is avoiding probate. A secondary benefit is protection of the trust assets should you start experiencing a mental disability. Your trust can include a disability trustee who can manage your trust if you become incapacitated. Without this disability trustee, there is a long court process mandated by the state to appoint a conservator or guardian to oversee your assets.
A few downsides include potential seizure of your property by creditors and that the assets will still be subject to estate taxes.
Creating an Irrevocable Trust
Unlike a revocable trust, an irrevocable trust cannot be changed, modified or terminated without the permission of the beneficiary. Having transferred your assets into the trust, you in essence surrender your rights of ownership to the assets and the trust.
So, why would you want to do that?
There are significant tax advantages. Assets placed in an irrevocable trust are not taxed when you die. They are also protected from creditor lawsuits. Furthermore, your family will not have to worry about coming up with the money to pay estate taxes.
Learn more about setting up a Special Needs Trust.
There are advantages and disadvantages to each type of trust. Let's talk about the one that will work for you. In the greater Boston, Massachusetts area, call the lawyers at Higgins & Gianino, at 888-784-0864 or contact us online.
The Center for Elder Law at Higgins & Gianino, helps elderly who are facing an urgent health care issue today and those who have decided to plan for tomorrow.