Massachusetts Residents can use wills and trusts to protect their assets.
Is your estate plan based on a will or a trust?
A robust estate planning is necessary to ensure that your assets are managed according to your wishes. Trusts are often preferred to manage assets and avoid the probate process. In the case of minors who need a guardian if both parents die or are unable to take care of the child, a simple will is needed. Trusts offer greater flexibility and control. They can help you avoid the probate process and protect your assets while potentially reducing tax liabilities. Our experienced estate planning attorney can help you determine what trusts might best meet your needs and whether a simple will is necessary.
How Are Wills Created?
In Massachusetts, drafting a will requires the testator (person making the will) to be at least 18 years old and of sound mind, meaning they understand the nature of their assets and the implications of their decisions. A valid will is signed by the testator, and two witnesses who are not beneficiaries of the will. Should our skilled estate planning attorney determine that a simple will would benefit your estate plan, we can help you draft a will that meets your needs.
How Are Trusts Created?
Creating a trust involves drafting a trust document, naming a trustee who will manage the trust’s affairs, and transferring assets into the trust. There are many different types of trusts that can be set up to meet specific needs. It is important to carefully consider your options and objectives to determine the best trust for you. As the process for setting up a trust is complex, it’s critical to enlist the assistance of an experienced trusts lawyer who can help ensure your trust is legally enforceable and meets your planning goals.
How Do Trusts and Wills Affect the Probate Process for Your Estate?
Avoiding probate can save time and money for your beneficiaries. Trusts are popular tools for bypassing the probate process, as assets in a trust do not become part of your probate estate. You can maintain privacy and allow an immediate transfer of assets after your death by setting up a Trust. While probate proceedings are a matter of public record, the terms of a trust don’t need to be disclosed publicly.
Assets that are solely owned by the deceased and not designated to transfer automatically, such as through joint ownership or beneficiary designations, are subject to probate if only a simple will is in place. Probate is the legal court process by which assets of the estate are identified, debts paid, and remaining assets distributed to beneficiaries. The probate court will validate a will that is legally enforceable and authorize the executors to carry out actions specified in the document. If there’s no valid will or trust, the court must distribute assets according to the state’s intestate succession laws, which may not align with your preferences.
In Massachusetts, probate can be a long and expensive process, often taking a year or more to complete for more complicated estates. The Uniform Probate code, adopted by the state, streamlines the process but still requires court supervision and significant effort from executors. During probate, the estate’s assets are unavailable to the beneficiaries, which may lead to financial difficulties for dependent family members.
Therefore, a trust or trusts may be your best estate planning tool. Why a Trust is Important to a Strong Estate Planning?
While you can use a will to specify how your assets will be distributed after your death, name guardians to care for minor children and appoint executors, a simple will will require a long and complicated probate that will cost your estate money. By integrating trusts into your customized Massachusetts estate plan, you can address both immediate and long-term needs, ensuring that your legacy is preserved and your beneficiaries are cared for according to your wishes.
Trusts can offer greater flexibility and control over asset distribution. Trusts allow you to customize your instructions and specify conditions for how and when beneficiaries will receive their inheritance. For example, you can assign age milestones and designate funds for educational purposes. This can help prevent assets from being mismanaged. Trusts can also protect beneficiaries who have special needs or are financially irresponsible by ensuring that their inheritance is managed responsibly. Some trusts can reduce estate taxes and allow more assets to be passed to heirs. A pour-over trust works in conjunction with a trust to ensure assets that are not already in the trust will be transferred to it immediately upon death. A pour-over trust is designed to “catch”, or “catch up” any assets that have not been transferred into a trust during your lifetime. This includes assets that you may have accidentally left out. Upon your passing, these assets are directed to the trust after they go through probate, making certain they are distributed according to the trust’s terms.
Reach Out to Our Experienced Massachusetts Estate Planning Attorney
Estate planning can be a complex but essential task. Many people are uncomfortable with the idea of their own mortality. They delay estate planning or only do it once, and then fail to update the plan to reflect changes in their lives and the state laws. A complete and current estate plan is the best gift you can give to your loved ones. By exploring wills, trusts, and other applicable planning tools, you can build a solid strategy that simplifies the asset distribution process and safeguards the futures of your beneficiaries.
