Salem Massachusetts Estate Planning Law Blog

In many cases, a Massachusetts resident who has a trust won't necessarily need a will. This is because the trust has many of the same testamentary capabilities as a will. However, the estate owner should remember that a trust needs to be properly funded before they pass on. Otherwise, a bank account, home or other asset must go through the probate process. During the probate process, a judge determines who an item should go to.

If a person lacks a valid will, there is a chance that state law will dictate who receives property held in their estate. Individuals can create what is known as a pour-over will. The will states that any assets that are left in an estate at the time of a person's death should be placed into a trust. It's worth noting that a pour-over will is the same as any other will, which means that it may need to go through probate.

Some trust beneficiaries in Massachusetts are capable of responsibly handling trust assets. However, others are a bit more reckless with their spending. For times when a trust creator (grantor) wants to protect intended heirs from themselves, one option is what's termed a spendthrift trust.

A spendthrift trust is an estate planning tool that's overseen by a trustee. This can be a specific individual or a corporate trustee. The trustee's role is to control disbursements from the assets in a trust. An asset management business can also serve as a registered investment advisor to invest money that's in the trust. The beneficiary would not be able to access any of the trust's money until it's time for them to receive distributions. The trustee would also have the discretion to determine which payments are necessary based on the terms of the trust agreement.

If you are one of the few adults in Massachusetts who have visited a legal professional to start the process of making an estate plan, you deserve a hearty congratulations. Not only are you protecting your wishes for your assets and belongings, but you are also saving your loved ones the confusion and frustration of dealing with an unprepared estate.

As part of a complete estate plan, you likely drafted a will, designated a power of attorney and created a revocable living trust to hold your assets, minimize probate and protect your estate's privacy. However, once you create the trust, your work does not end. If you fail to fund your assets to the trust, your document will be worthless to your heirs.

Individuals in Massachusetts and throughout the country typically use a will to transfer their assets upon their deaths. However, it may be a good idea to use a trust to do so instead. A trust is managed by a person or entity that has a fiduciary responsibility to the beneficiaries of that document. This means that the trustee has to take actions that meet a beneficiary's interest and cannot engage in self-dealing.

Trustees must provide information about the trust and how it is being administered to a beneficiary upon request. There are many reasons why an individual could want to make a trust beyond the fact that it would be managed by a trusted person or entity. In addition, it could be used to protect assets from creditors, manage a business or keep the details of an estate private. When a person transfers assets through a will, it generally must go through a public probate process.