When one makes a will, it must go through the process of probate and therefore, the assets will take a long time to reach the beneficiaries. In addition, there will be costs deducted from the person’s estate for the administration of the probate process. This is why keeping all assets in a will can be costly and why many people consider the benefits of opening a trust.
Creating a revocable trust, otherwise known as a living trust, can mean that you are able to gain financial privacy, since all wills are public documents. In addition to this, you will possibly be able to reduce your taxes and the use of your assets can be managed in the event of you becoming incapacitated.
How much does it cost to create a revocable trust in the state of Massachusetts?
While there are many ways to make a revocable trust work to your advantage, they are relatively simple to create, and it can be done in theory without any professional help. In Massachusetts, there are filing fees that will depend on the exact type of petition you wish to make. In order to create a general petition for the creation of a trust, the filing fee is $375 with a surcharge of $15.
Once the trust has been created, there will be a great deal of paperwork involved, since every asset that is added to the trust will need to be signed for.
If you want to create a revocable trust in the state of Massachusetts, it is important that you understand the entire process before taking action. An experienced estate planning attorney can provide guidance and advice that can be very helpful.
How a revocable trust protects you in an emergency
Many people focus primarily on what happens after death when considering estate planning. However, a revocable trust offers critical protection during one’s lifetime, particularly in emergency situations where one becomes incapacitated.
Without a properly established trust, incapacitation often leads to a court-appointed conservatorship. This process can be lengthy, expensive and public. Your loved ones would need to petition the Massachusetts Probate Court, provide medical evidence of your incapacity and await judicial appointment of a conservator – someone who may not be your preferred choice for managing your affairs. During this period, your assets might remain in limbo, bills could go unpaid and critical financial decisions could be delayed, potentially causing significant hardship.
A revocable trust provides a seamless alternative. When you establish the trust, you name yourself the initial trustee and designate a successor trustee who can immediately step in if you become incapacitated. This transition of authority happens privately, without court intervention, according to the terms you’ve established. Your successor trustee gains immediate legal authority to manage all assets held within the trust, ensuring your financial matters continue uninterrupted according to your documented wishes.
Selecting a reliable successor trustee is paramount to this protection. You may want to choose someone who is trustworthy, financially responsible and capable of following your instructions. Equally important is keeping your trust instructions current. Regular reviews ensure your trust reflects your current wishes and circumstances, particularly after significant life events like marriages, divorces, births or deaths.
While a revocable trust is powerful, it works best as part of a comprehensive incapacity plan. Complementary documents include a durable power of attorney (for assets not titled in your trust), a health care proxy (for medical decisions) and a HIPAA authorization (for access to medical information). Together, these documents create a robust safety net for emergencies.
Consider this scenario: You have established a revocable trust naming your adult daughter as successor trustee. After suffering an unexpected stroke, you are temporarily unable to manage your affairs. Because of your trust, your daughter can immediately access your accounts to pay your medical bills and mortgage, hire the in-home care you prefer and manage your investments according to your documented wishes – all without court involvement. Without this trust, your care and financial stability might be compromised during the weeks or months required for conservatorship proceedings, leaving you vulnerable when you need protection most.
By incorporating a revocable trust into your estate plan, you are not just planning for after your passing – you’re protecting yourself and your loved ones during life’s unexpected challenges.