What are the advantages and disadvantages of a living trust?
A living trust is an estate planning tool used to transfer assets to one’s beneficiaries after death. In Massachusetts, a living trust gives the owner control over the assets and the ability to decide how the assets are divided among beneficiaries. The main advantage of a living trust is that it allows the assets to pass directly to the beneficiaries without having to go through probate court. This can be beneficial because probate can be a lengthy and costly process. Additionally, the assets placed in the trust can remain private. One of the primary disadvantages of a living trust is that it requires a significant amount of time and effort to set up and manage. It also requires an upfront cost and the ongoing cost of a lawyer, if you decide to hire one. Living trusts are also revocable, which means the trustmaker can make changes or end the trust at any time. Overall, living trusts offer the benefit of bypassing probate in favor of a private and more efficient transfer of assets to beneficiaries while giving the trustmaker control over their assets. However, they require time and money to set-up and manage and can be revoked at any time.
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