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Massachusetts Residents May Use Trusts to Designate Heirs

Those in Worcester may think of trusts as necessary only for those with substantial wealth, but a trust can also protect any size estate. Items not placed in a trust may be disbursed by the courts instead of following the wishes of the decedent. Some suggest that an individual who has assets up to $100,000 may benefit from setting up a trust.

When a family or individual sets up a trust, the items within will be disbursed according to the specific wording used. As long as items are named within a trust, the disbursement must abide by the directions given. Special conditions can also be specified. It may be required, for example, that heirs complete their education before collecting their share of the estate.

Different types of trusts provide different benefits. Some trusts are able to bypass any attempts to collect from creditors. These devices may be referred to as credit-shelter trusts or bypass trusts. Another type of device is called a generation-skipping or dynasty trust. This allows a person to move money into an account that transfers the wealth to beneficiaries who are two generations younger and is often used to provide for a benefactor’s grandchildren.

There are many different types of trusts that serve different purposes for a benefactor. In addition, there are also other types of estate planning strategies that might be beneficial for a person who is seeking to outline their wishes. Those who want to establish a plan for their estates may want to discuss these different strategies with an attorney who has experience with such devices.

Source: CNN Money, “Estate planning: Is a trust beneficial?“, November 17, 2014

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