If your attorney is recommending that you create a living trust, you might want to listen to him carefully as he may have your best interests, and your family's best interests, in mind. Although a living trust won't be in the cards forever, there are some important benefits that could save your family a tremendous amount of time and money later on down the road. Here are some of the most essential benefits of a living trust:
A trust can own property and assets, but it's not a person, so it seems like it could live on forever -- guarding your assets for eternity or for so long as they remain. However, just like everything else, trusts must eventually come to an end too.
Sometimes Massachusetts residents decide that they want to do some good in the world while also receiving some benefits themselves. One way to do this is to create what's called a charitable remainder trust. This kind of trust has one or more named beneficiaries. The beneficiary could be a loved one. It could even be yourself.
Many Massachusetts residents would agree -- some in jest and some quite seriously -- that their pets are more important members of their family than their children. For this reason, a lot of estate planners ask their attorneys how they can make a plan to ensure their pets are well-taken care of when they're gone.
Imagine you want to leave $200,000 to your only surviving relative. The problem is, this individual is only 18 years of age, and has not exhibited an ounce of financial responsibility in his entire short life. You may definitely be concerned about leaving such a large amount of cash to your heir. Not only is there the chance that your beneficiary will quickly spend the money irresponsibly, but -- if your relative has a substance abuse issue -- the money could be extremely dangerous to his health.
It is becoming increasingly common for people in the state of Massachusetts to purchase life insurance since they offer a way to give families peace of mind. They may choose such packages so that they are confident that they can give their children the support they need no matter the circumstances.
Trusts are quite often thought of in general terms; however, there are many different types of trusts available and they differ greatly depending on the type. Therefore, it is important to understand more about all of the options and benefits so that you are able to compare how constructive trusts differ to the norm.
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.
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.
If you are a parent of an adult child who has proven to be inept at handling money, it can make your estate planning efforts especially challenging.