Most people know they should have some kind of estate plan in place, but many are not sure where to start. A will tends to get the most attention, and for good reason, as it is a foundational document. However, a will alone may not be enough to protect your family, your property, or your wishes. For many Massachusetts residents, the question is whether a trust belongs in that plan alongside a will.
If you are ready to explore your options, the trust lawyers at Roark & Mansur Law, PLLC are here to help and explain the many benefits of a trust. Call us today to schedule your consultation.
How a Trust Works
A trust is a legal arrangement in which you transfer ownership of your assets to the trust itself, which is then managed by a trustee for the benefit of your chosen beneficiaries. During your lifetime, you typically serve as both the trustee and the beneficiary of your own revocable living trust, which means you keep full control over your assets. When you pass away, or if you become incapacitated, a successor trustee steps in and administers the trust according to your instructions.
That is a simplified picture, of course. Trusts come in many forms, and the right structure depends on your goals, your family situation, and the nature of your assets. The core concept is always that a trust lets you decide, in advance and in detail, how your assets will be managed and distributed.
Trust vs. Will
One of the questions our trust and estate attorneys hear most often is regarding the difference between a will and trust. A will and a trust are not interchangeable, and they do not serve identical purposes.
A will goes into effect only at death. It speaks to the probate court, which then supervises the distribution of your estate. Probate is a public process, and in Massachusetts, it typically takes longer than one year to complete, even for relatively straightforward estates, in large part because creditors have one year from the date of death to file claims against the estate.
A trust, by contrast, operates outside of probate. When your assets are held in trust, they pass directly to your beneficiaries according to the trust’s terms, without court involvement. That means faster distribution, lower administrative costs in many cases, and privacy. The contents of a will become part of the public record once it is filed with the Probate and Family Court; the terms of a trust do not.
A will also has no power during your lifetime. If you become incapacitated and your assets are held only in your name, your family may need to petition the court for a guardianship or conservatorship to manage those assets on your behalf. A properly funded trust addresses this problem directly because your successor trustee can step in immediately without court intervention.
Common Reasons People Choose to Set Up a Trust
There is no single profile of someone who benefits from a trust. That said, a few situations come up again and again.
You want to avoid probate.
As discussed, probate in Massachusetts is a public, court-supervised process that typically stretches over one to two years and involves attorney fees, court costs, and administrative burdens. Many families prefer to bypass it entirely.
You want to protect your assets.
Many people form trusts for asset protection, as they can potentially shield what you have built from potential creditors, legal judgments, and other claims. While a revocable living trust does not provide this protection on its own, certain irrevocable trusts are specifically designed to place assets beyond the reach of future creditors. For individuals in high-liability professions or anyone concerned about protecting their estate for the next generation, this is an important benefit of a trust.
You have minor children or beneficiaries with special needs.
A will can name a guardian for your children, but it cannot control how or when they receive assets. A trust can hold funds for a minor child until a specified age, or provide carefully structured support for a beneficiary with a disability without disrupting their eligibility for government benefits.
You own real estate in more than one state.
If you die owning property in multiple states, your estate may face separate probate proceedings in each of those states. Holding that property in a trust can eliminate that burden.
You are concerned about privacy.
If you would prefer that the details of your estate stay out of the public record, a trust offers that protection in a way a will simply cannot.
You want to plan for incapacity, not just death.
A living trust includes built-in provisions for what happens if you can no longer manage your own affairs. That continuity of management can spare your family a great deal of stress and expense.
You are thinking about Medicaid planning.
Certain types of irrevocable trusts can play an important role in protecting assets from long-term care costs. In Massachusetts, MassHealth applies a five-year look-back period when reviewing asset transfers made before a long-term care application, which means that planning well in advance gives families far more options than waiting until a crisis arises. This is a particularly important area where working with an experienced trust and estate attorney makes a meaningful difference.
Do You Need a Trust?
The answer depends on your circumstances. Not every estate plan requires one. Someone with modest assets, straightforward beneficiary designations, and no particular concerns about probate may do just fine with a well-drafted will and other planning documents. However, if any of the situations above resonate with you or might in the future, it is worth exploring whether a trust belongs in your plan.
Setting up a trust is also only part of the picture. A trust that is never funded, meaning assets are never actually transferred into it, provides little benefit. Our attorneys can help you not only draft the right documents but also make sure the trust is properly funded and coordinated with the rest of your estate plan.
Talk to Our Massachusetts Trust Planning and Administration Attorneys
Estate planning is not a one-size-fits-all process, and it is not something that benefits from being put off. If you have questions about whether a trust makes sense for your situation, or if you are ready to put a plan in place, the trust lawyers at Roark & Mansur Law, PLLC are here to help.
Our firm serves individuals and families throughout the Merrimack Valley, Greater Lowell, and surrounding Massachusetts communities. Contact us today to schedule your initial consultation to discuss your estate planning needs and questions.