What is a living trust and how does it work?

A living trust is an estate planning tool used to transfer ownership of assets during one’s lifetime. It is a legal document created by the trust maker, which allows them to designate a trustee to manage the assets for the benefit of the beneficiary. It is very similar to a will in the sense that the trust maker can state their wishes with regards to the assets to be passed on to their heirs. In Massachusetts, living trusts are regulated by the Uniform Probate Code. The trust maker can set up the trust with almost any kind of asset, including cash, stocks, life insurance policies, and real estate. The trust maker will direct the trustee, who they can name, on how to invest and manage the trust assets. The trust maker can also name a successor trustee to manage the trust assets after their passing. The assets placed in the trust are not subject to probate, which makes it an attractive option for those looking to protect their assets from the probate process. Additionally, the trust can also provide a degree of privacy when the trust maker passes away because the details of the trust are not disclosed to the public. Living trusts are also very flexible in that the trust maker can modify the trust while they are still alive. It is important to consult a qualified attorney in Massachusetts if you are interested in setting up a living trust. An attorney can help ensure that your wishes are properly documented and that your trust is structured to best meet your needs.

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What is a living trust and how does it work?

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