Revocable living trusts can be altered at any time. An amendment can be used to change certain provisions or beneficiaries. It is also possible to nullify or replace the entire contents of a trust through an amendment and reinstatement. Below is details of MA revocable living trusts.
Revocable Living Trusts
The downside of revocable living trusts are that assets in the trust are considered your own personal assets. It therefore offers no special protection from creditors if you are sued. Upon death, all assets are subject to any estate taxes at the federal and state level. Depending on your finances, these two items can lead to significant risk or loss.
Reasons to Use Revocable Living Trusts
There are several reasons why you would select revocable living trusts despite the disadvantages noted above. Below are the key reasons that many select this type of trust.
Revocable living trusts are often used for possible future disability. Assets in a revocable trust may be managed by a trustee instead of by a court-assigned guardian in the event of mental disability. This is an important provision when there is a family history of mental illness.
Staying Out of the Court System
The type of trust may determine whether the courts get involved. With revocable living trusts, assets are handed directly to beneficiaries without going through a probate process. This facilitates the transfer process and time frame.
Since transfers take place outside of court, the trust agreement does not get filed into public record. Detailed information on your assets can therefore remain private. The names and assets granted to individual beneficiaries is also not revealed. This preserves your privacy and that of your beneficiaries.
More Details Of MA Revocable Living Trusts
The details of MA revocable living trusts provided in this blog was compiled by John Martino at Martino Law Group. For additional information on revocable living trusts and other elements of your estate plan, contact John at 781-606-9002 or via email at JohnMartino@martinolawgroup.com. We can explain the benefits of revocable living trusts and irrevocable trusts and help you decide which option best accommodates your needs.