Trust
Trusts
Flexible Planning. Long-Term Protection.
Trusts are among the most effective estate planning tools available under Massachusetts law. A properly drafted trust can help manage assets, avoid probate, plan for incapacity, protect beneficiaries, preserve privacy, and create a structured estate plan tailored to long-term financial and family goals. Trust planning in Massachusetts is commonly incorporated into comprehensive estate plans involving wills, powers of attorney, health care proxies, probate avoidance strategies, and asset protection planning.
A trust is a legal arrangement in which a trustee holds and manages property on behalf of one or more beneficiaries according to the terms established by the creator of the trust, often referred to as the grantor or settlor. Massachusetts trusts may hold many types of assets, including Massachusetts real estate, investment accounts, business interests, savings accounts, brokerage accounts, personal property, and life insurance proceeds.
Under Massachusetts law, trusts may be established during life or upon death. A trust created during life is commonly referred to as a Living Trust or Revocable Living Trust, while a trust created through a Last Will and Testament is known as a Testamentary Trust. Trusts may also be classified as revocable trusts or irrevocable trusts depending on the level of control retained by the grantor.
A Revocable Living Trust is one of the most common estate planning documents used in Massachusetts estate plans. A revocable trust allows the grantor to maintain control over trust assets during life while establishing instructions for asset management and distribution upon incapacity or death. Assets properly transferred into a revocable trust generally avoid probate in Massachusetts, allowing for a more efficient and private transfer of assets after death.
Avoiding probate is one of the primary reasons trusts are incorporated into Massachusetts estate planning strategies. Probate administration in Massachusetts occurs through the Probate and Family Court and may involve delays, legal fees, public filings, creditor claims, and court oversight. Assets owned by a trust are generally administered outside of the Massachusetts probate process, helping streamline estate administration and preserve privacy.
Trusts are also important tools for incapacity planning in Massachusetts. A trust may designate a successor trustee to manage trust assets if the grantor becomes incapacitated or unable to manage financial affairs. This can help avoid conservatorship proceedings and maintain continuity in financial management during periods of illness, disability, or cognitive decline.
Irrevocable trusts are commonly used in advanced estate planning, Medicaid planning, asset protection planning, and estate tax planning. Because irrevocable trusts generally involve transferring ownership and control of assets, these trusts may provide legal and financial benefits depending on the trust structure and applicable Massachusetts and federal law.
Special Needs Trusts are another important category of trusts under Massachusetts law. A Special Needs Trust may hold assets for the benefit of a disabled individual while preserving eligibility for certain public benefits programs such as Supplemental Security Income (SSI) and MassHealth. These trusts are frequently incorporated into disability planning and long-term support planning.
Massachusetts trust planning may also involve estate tax planning strategies. Massachusetts imposes a Massachusetts estate tax separate from the federal estate tax system. The current Massachusetts estate tax threshold in 2026 is $2 million dollars. Certain trust structures may help reduce estate tax exposure, preserve wealth, maximize tax efficiencies, and facilitate generational wealth transfer planning.
- Revocable Living Trusts
- Irrevocable Trusts
- Medicaid Planning Trusts
- Special Needs Trusts
- Testamentary Trusts
Trust funding is an essential component of effective trust planning. Assets must be properly transferred into the trust for the trust to function as intended. Trust funding may involve recording deeds for Massachusetts real estate, transferring ownership of financial accounts, assigning business interests, updating beneficiary designations, and coordinating asset titling with the estate plan.
Trust administration in Massachusetts may involve fiduciary accounting, trust asset management, tax filings, beneficiary notices, fiduciary duties, and compliance with the Massachusetts Uniform Trust Code. Trustees are generally required to administer trusts in good faith and in accordance with the terms of the trust agreement and Massachusetts fiduciary law.
Comprehensive Massachusetts estate planning often includes trusts together with additional estate planning documents such as:
- Revocable Trust
- Pour-Over Will
- Durable Power of Attorney
- Health Care Proxy
- HIPAA Authorization
- Advanced Health Care Directive
- Guardianship Nominations
McGah Law, PLLC provides Massachusetts trust planning, revocable living trusts, irrevocable trusts, Medicaid trust planning, estate planning, probate avoidance planning, and trust administration services for clients throughout the North Shore and across Massachusetts.