Many people choose to create trust funds for the benefit of their loved ones. Trust funds have a great number of benefits, and they are not only for the extremely wealthy. If you are starting to plan your estate in the state of Massachusetts, it may be worthwhile for you to take the time to understand more about their benefits.
Trust funds are like other forms of trusts in the sense that they act as a separate legal entity in order to hold property. They are created primarily for the benefit of another person.
How can a trust fund help my loved one manage their finances?
Trust funds continue to be very popular choices for parents or grandparents because they enable the grantor to be able to set certain limits and rules on how the beneficiaries can use the assets in the trust. The use of a spendthrift clause makes it possible for the trust funds to be limited until the beneficiary reaches a certain age, for example.
Can trust funds be beneficial from a tax perspective?
Are trust finds a better choice than other types of trusts?
The right type of trust for you will depend entirely on your personal circumstances and family situation. If you are considering setting up a trust in Massachusetts, it is a good idea to evaluate all the different options you have.