What is an inheritance trust?

An inheritance trust is a trust that is set up by a person to manage their assets after their death. It allows an individual to control how their assets are distributed to their heirs. This type of trust can be used to protect the inheritance from creditors and other expenses that may arise after the individual’s death, as well as providing tax advantages to the heirs. In Massachusetts, an inheritance trust is a legally binding document that is written by an attorney who specializes in estate planning. The individual who sets up the trust is known as the grantor. The trust document outlines how the assets in the trust are to be managed and distributed to the heirs after the grantor’s death. The grantor may appoint a trustee to manage the trust and distribute the assets according to the provisions of the trust. Inheritance trusts can offer a variety of advantages, including reducing estate taxes, protecting the inheritance from creditors, and keeping control of the assets in the trust. However, inheritance trusts can also be complex and require ongoing maintenance to ensure that the trust’s provisions are followed. It’s important to seek the advice of a qualified attorney who specializes in estate planning to ensure that an inheritance trust is properly set up and administered.

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What is an inheritance trust?

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