When considering starting a trust in the state of Massachusetts, it is important that you make sure to research all of the different options and weigh the pros and cons of each. The best choice for you will depend on what exactly you want to achieve and your current as well as predicted financial situation.
Many people decide to set up an irrevocable living trust because they want to protect their assets and ensure that a certain family member will be the beneficiary in the future. Creating an irrevocable trust should not be a light decision as the name suggests. Once created, the trust cannot be undone.
The benefits of an irrevocable living trust
Sometimes, assets can be a burden and they can be particularly liable to being seized by creditors and former spouses, especially when going through a divorce. An irrevocable trust can be extremely beneficial when you are certain of who you want to benefit from your assets in the future. You also want to avoid losing assets to creditors, and an irrevocable trust creates a shield of protection. It prevents anyone from being able to have access to the assets apart from the named beneficiaries at the end of your life.
In a similar way, an irrevocable trust can also help an estate save money, because it prevents the probate process and avoids estate taxes.
If you are starting to plan your estate in the state of Massachusetts, it is important that you consider and compare all types of trusts and wills to establish the right strategy for your needs.