Trusts are invaluable in estate planning. They provide a structured way to protect your assets, care for your loved ones, and honor your wishes. Establishing a trust can help you avoid probate, reduce estate taxes, and maintain privacy regarding your financial affairs.
Fletcher Tilton provides personalized trust solutions tailored to the unique needs of individuals and families across Massachusetts and Cape Cod. Whether you’re looking to provide for minor children, care for a loved one with special needs, or support a charitable cause, a trust offers flexibility and peace of mind. Contact us today to get started with a seasoned trusts and estates attorney.
What Is a Trust?
A trust is a legal arrangement where one party, known as the grantor, transfers assets to another party, the trustee, to manage for the benefit of a third party, the beneficiary. Trusts can be critical in your estate plan, offering numerous benefits and flexibility. Key components of a trust include:
- Grantor: The individual who creates the trust and transfers assets into it.
- Trustee: The person or institution responsible for managing the trust assets according to the grantor’s instructions.
- Beneficiary: The individual or entity that benefits from the trust.
There are generally two types of trusts:
- Revocable Trust: This type of trust can be altered or revoked by the grantor during their lifetime, offering flexibility and control.
- Irrevocable Trust: Once established, this trust cannot be changed or revoked, providing greater asset protection and potential tax benefits.
Trusts can help avoid probate, provide for minor children, manage assets for beneficiaries with special needs, and ensure your wishes are fulfilled. Let Fletcher Tilton guide you through choosing the right trust for your situation.
Types of Trusts in Massachusetts
Trusts come in various forms, each serving specific purposes and offering distinct benefits. At Fletcher Tilton, we can advise you on the different types of trusts that may be suitable for your needs:
Revocable Living Trust
A revocable living trust allows you to maintain control over your assets during your lifetime, with the flexibility to modify or revoke the trust at any time. This type of trust helps avoid probate, providing a seamless transition of assets to your beneficiaries upon your passing.
Irrevocable Trust
An irrevocable trust offers significant asset protection and potential tax benefits, as the assets in this trust are no longer considered part of your estate. This trust is particularly beneficial for those looking to protect their assets from creditors or reduce estate tax liabilities.
Special Needs Trust
A special needs trust is designed to provide for a beneficiary with disabilities without affecting their eligibility for government benefits. This trust ensures your loved one receives the necessary support without compromising their financial assistance.
Charitable Trust
A charitable trust allows you to support a charitable cause while receiving tax benefits. Depending on your financial goals and philanthropic desires, you can establish a charitable remainder trust or a charitable lead trust, which offers distinct advantages for supporting the causes you care about.
Spendthrift Trust
A spendthrift trust protects beneficiaries from creditors and poor financial decisions. The trustee manages the assets and controls distributions, ensuring the beneficiary’s long-term financial security.
Each type of trust serves a specific purpose, and Fletcher Tilton is here to help you make informed decisions about your financial future.
Common Misconceptions About Trusts
Many believe trusts are only for the wealthy, but this is a misconception. Trusts can benefit individuals and families of all income levels by providing asset protection, avoiding probate, and ensuring their wishes are fulfilled. Trusts offer flexibility and security in various financial situations, making them a valuable tool for anyone looking to protect their assets and plan for the future.
Another common misconception is that trusts are overly complex and expensive. While trusts require careful planning and legal assistance, the long-term benefits often outweigh the initial costs. Trusts can be customized to meet your needs, providing peace of mind and financial stability for you and your loved ones.
How Fletcher Tilton Can Help
At Fletcher Tilton, we provide personalized and compassionate estate planning services. We understand each family’s unique situation and will tailor our approach to meet your needs. Our experienced team is dedicated to protecting your assets and ensuring your wishes are honored. Trust us to guide you through each step of setting up a trust, including:
- Identifying Your Objectives: We work with you to understand your goals and how a trust can help you achieve them.
- Choosing the Right Trust: Based on your objectives, we help you select the trust that best fits your needs.
- Selecting a Trustee: We assist in choosing a reliable trustee to manage the trust according to your wishes.
- Drafting the Trust Document: Our attorneys ensure the trust document is carefully drafted to reflect your intentions and provide legal protection.
- Funding the Trust: We guide you through transferring assets into the trust, ensuring that all legal and financial steps are properly completed.
Because setting up a trust is not a one-time arrangement, we offer ongoing counsel to review and update your trust as your circumstances change, such as adding new beneficiaries or changing your financial situation.
Contact Our Massachusetts Trusts and Estates Attorney
Protect your assets and secure your family’s future with a tailored trust from Fletcher Tilton. Whether you are considering a revocable living trust, an irrevocable trust, or another type of trust, our experienced attorneys are here to guide you every step of the way. Contact us today for a consultation.