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Do You Need a Massachusetts Revocable Living Trust? Let's Find Out!
In the fated event, you die, you will most likely want a seamless estate transfer to the rightful beneficiaries. You have a role to play while alive to ensure that. You can write a will, but a Massachusetts revocable living trust is a better option. With a revocable living trust, beneficiaries can avoid the costly and lengthy probate process, helping them save money and time.
A revocable living trust is a legal document that allows you to keep your assets in a trust. At the same time, it gives you the power to control their distribution after your death. Keep reading to learn more about Massachusetts revocable living trust and why you need one.
What is a Massachusetts Living Trust?
A living trust is a legal arrangement used in estate planning where the owner of the estate puts their assets into a trust and outlines how the assets will be distributed to the beneficiaries after death. The estate owner is referred to as a grantor and maintains ownership of the estate (trust) until death. In the living trust, the grantor must name a successor trustee who will facilitate or oversee the trust distribution to the named beneficiaries.
A living trust can be revocable or irrevocable. An irrevocable living trust cannot be modified or revoked once signed. On the other hand, revocable living trusts can be modified or revoked by the trustor or grantor while they are still alive.
There are many advantages of a revocable living trust, such as the grantor enjoying the benefits of their trust assets while they are still alive. It also saves their family and beneficiaries a lot of money and time because the estate will not go through the probate process.
So, Do You Need a Living Trust In Massachusetts?
A living trust is essential in Massachusetts as it allows you to control and use your trust assets while still alive. Not only that, but it also gives you an ultimate say on how to distribute your assets while you are gone.
With a completed and notarized Massachusetts revocable living trust form, your estate beneficiaries will not undergo a complicated process to get their share. The successor trustee will manage the assets and distribute them to the beneficiaries. That means your family will get their inheritance fast, which is good.
It is also worth noting that a revocable living trust protects you in case you become mentally incapacitated. Moreover, it allows you to maintain high-level privacy, meaning the terms of your living trust will not be made public. Only you, the successor trustee, beneficiaries, and close relatives or friends will know the details.
However, Massachusetts is one of the states that has adopted the Uniform Probate Code. This model law helps streamline the probate process, making it shorter and easier. You can opt for this option if your estate's value (excluding one vehicle) is $25,000 or less.
Can Revocable Living Trust Help You Avoid Estate Taxes in Massachusetts?
In Massachusetts, a living trust doesn't allow you to avoid taxes. You must pay estate taxes if your estate is worth more than $1 million. If your trust assets are more than $12 million, you will pay federal estate taxes to the government. But you can reduce the taxes by creating an AB trust that transfers the assets from one spouse to the surviving spouse.
How to Create a Massachusetts Revocable Living Trust?
You can easily create a living trust in Massachusetts by completing above given revocable living trust form. This form has all the necessary details, and once filled out correctly and the necessary documents attached, you need to sign and notarize it. So if you want to create a revocable living trust, Forms.legal can help.