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Trusts In Mass Estate Planning
There are two common trust types in estate planning. (The business world uses other types of trusts.)
In personal estate planning, Revocable (changeable) or Irrevocable (not changeable) trusts may be useful, depending on family and tax situations. Both types do not need to go through a court process called probate to be capable of transferring assets upon death or another event you state in the trust.
Differently, a will is valid only at death and has to go through probate (court proceedings) to become active.
Trusts can be vital if you want to give assets (money) to someone and they are not equipped to handle its investment. Or, if you have enormous wealth and you want to lower income and estate taxes by setting up a trust.
I create either a MA revocable trust or an irrevocable trust for MA residents - sometimes both at the same time.
By setting up a trust, you can control how the money will be used for another person - perhaps one who has a problem, either physical or mental. Handling money can be difficult.
Trusts are a fundamental concept in American and British based law.
Since England in the 1300s, our legal system has provided for trusts. It allows you to select a person (trustee) to invest and keep track of assets (real estate and money) while the trustee uses the property for the benefit of another person (beneficiary).