Serving Massachusetts Clients in the preparation of Trusts
Trusts are commonly used estate planning vehicles that serve as a backbone and complement a client’s overall estate plan. Trusts come in many forms for various applications and can be personally tailored to help accomplish the following:
- Tax Minimization
- Probate Avoidance
- Creditor Protection
- Medicaid Eligibility
- Business Succession
- Financial Privacy
Revocable Trusts or “Living Trusts” are generally the best strategy to avoid probate and protect a client’s financial privacy. Revocable Trusts are created during a client’s lifetime and allow for the addition or withdrawal of assets as circumstances change over the years. The client, commonly the Grantor (creator) and Trustee, has control over the trust assets and the fiduciary obligation (as Trustee) to preserve and use the trust property for the benefit of the Beneficiaries. The Revocable Trust can hold all types of assets and will generally be drafted to accommodate the Grantor(s)/Trustee(s)’s daily financial needs.
The Revocable Trust serves the same purpose as a Will concerning the distribution of assets to a client’s designated beneficiaries; but has the advantage of avoiding the time delays, expense and publicity of probate proceedings. The Will, when drafted in tandem with a Revocable Trust, generally includes a “pour over” provision to ensure that any remaining (non-earmarked) assets the client owns will pour over into the Revocable Trust upon death.
Irrevocable Trusts are typically created for clients with larger estates with the objective to minimize the size of the taxable estate and provide creditor protection for beneficiaries. Generally, assets from the large estate will be set aside for specific beneficiaries through a carefully designed lifetime gifting strategy that is not subject to a gift tax liability.
Other Trust Applications
Attorney Zine is knowledgeable about the various strategies and options for eliminating and reducing federal and state estate taxes, providing creditor protection, providing for clients with special needs, qualifying for Medicaid eligibility, business succession, and probate avoidance. He is available to discuss the various trust applications that may best suit your needs and objectives, which may include:
- Irrevocable Life Insurance Trusts (ILITs)
- Intentionally Defective Grantor Trusts (IDGTs)
- Realty or Nominee Trusts
- Special Needs Trusts
- Charitable Trusts
- Qualified Personal Residence Trusts (QPRTs)
- Estate Tax By-Pass Trusts
- Estate Tax Qualified Terminable Interest Property (QTIP) Trusts
- Grantor Retained Annuity Trusts (GRATs)