Certain clients will benefit from a trust, which can help them:

  1. Avoid probate
  2. Minimize estate taxes
  3. Care for a disabled child
  4. Provide for minor children
  5. Shelter assets from potential creditors or for long-term care planning (Medicaid or “MassHealth” benefits).

A trust is a legal entity under which one person – the “trustee ” – holds legal title to property for the benefit of others – the “beneficiaries.” The trustee must follow the rules provided in the trust instrument. An irrevocable trust is one that cannot be changed after it has been created. A revocable trust is one that may be changed or rescinded by the person who created it.

A trust is not appropriate for everyone and should not be used in every situation. As with a will, it is important to properly align assets and/or documents when working with a trust, and it is critical to use the appropriate type of trust for the clients needs. In certain situations, using the wrong form can actually be more harmful to the client that not using a trust at all.