Woburn Trust Attorneys
Helping You Protect Your Assets and Plan for Tomorrow
Many individuals have heard the term “trust” but are unfamiliar with how it is vital to estate planning. Others may know more about how a trust works but mistakenly believe that trusts are only for older adults or the wealthy.
Trusts can benefit many people, depending on their financial and estate planning needs. Regardless of age or financial resources, establishing a trust can help protect your assets and help your family avoid probate.
If you have been contemplating creating a trust or want more information about its benefits, contact Simmons & Schiavo Attorneys At Law to schedule a consultation at our Woburn office with one of our skilled estate planning attorneys. A legal team member will gladly meet with you to answer your questions and provide more information about our services.
What are the Benefits of Creating a Trust?
Most people recognize the importance of having a will in their estate planning documents. Although a will offers guidance on how your final wishes should be carried out, a trust can protect your assets and offer a level of privacy that a will does not.
One of the most significant benefits of creating a trust is that it protects assets against beneficiaries’ creditors and lawsuits and helps your beneficiaries avoid probate and estate taxes after you pass away. Many families must wait for the probate to be completed before accessing necessary financial resources.
Another appealing aspect of creating a trust is that, unlike a will, which becomes public knowledge, the terms of a trust remain private. Other benefits include creating a special needs trust to ensure a family member can access financial resources without jeopardizing their ability to receive essential government benefits. Placing assets in a trust can protect individuals should there be a divorce or allow flexibility for a family member who has not managed their money efficiently.
How Can a Special Needs Trust Protect My Family Member?
Suppose you have a family member with special needs. You may be wondering what you can do to help them have necessary assets they can use but will not jeopardize their ability to qualify for public benefits. Many special needs individuals utilize government programs that provide them with medical care and other financial resources they rely on for daily living.
One of the best options is to create a special needs trust (SNT) that can be used to pay for expenses that government benefits will not cover, including:
- Personal care costs that cover expenses for cell phones, internet service, clothing, and hygiene products
- Medical and dental expenses not covered by MassHealth and other government programs
- Transportation expenses, including money for a car or modified vehicles
- Educational expenses, including tuition fees, textbooks, or school supplies
- Recreational expenses that cover expenses for sporting equipment, movies, and other social events
- Home improvement costs for furnishings, repairs, or maintenance
An SNT cannot pay for housing, utilities, or food costs as they are considered “basic support” and can count against the individual’s government benefits.
What Type of Trust Can Protect My Assets if I Need Long-Term Care?
If you have concerns that you may one day need to enter a nursing home or other type of long-term care facility, you are probably worried about your hard-earned assets. An irrevocable trust is an estate planning document that allows you to transfer your assets into a trust that cannot be amended after the grantor has created it.
Once the assets are placed in the irrevocable trust, they are no longer considered your property but belong to the trust. Because the trustee manages the assets, you are no longer considered to have ownership rights, which can assist with you meeting Medicaid or MassHealth eligibility requirements.
MassHealth has a five-year look-back period; any assets placed in the trust can still be considered your property during that five-year period. If you are considering the benefits of creating an irrevocable trust, it is best to consult an experienced Woburn estate planning attorney who will thoroughly evaluate your case.
Our elder law attorneys have extensive experience helping clients who want to protect their assets and meet eligibility requirements for government benefits.
What is Trust Administration?
In Massachusetts, trust administration involves managing a trust’s assets after the grantor dies. Trust management instructions are carefully followed during administration to ensure beneficiaries receive their rightful assets.
The trustee is the individual responsible for managing the assets in the trust and distributing assets after the terms of the trust have been satisfied. The trustee takes several actions from the time the trust is created until the time to distribute assets, which include:
- Notifies all beneficiaries that they are named in the trust
- Manages all of the trust’s assets
- Pays all taxes and debts owed by the trust
- Distribute all assets to the named beneficiaries once the terms of the trust have been satisfied
Most individuals who create a trust name themselves as the trustee. It is also wise to name a person you have confidence in as a successor trustee who will manage the trust after you pass away. Oftentimes, an individual will name their spouse or one of their adult children to act as the successor.
If you have questions about trust administration, contact our law office to learn more about our legal services. We can help you create a trust to plan for the future and meet your unique goals.
What Makes Your Law Firm Stand Out Over Others for My Estate Planning Needs?
Simmons & Schiavo Attorneys At Law is dedicated to helping you achieve your financial goals and planning for your family’s future. We know figuring out how to protect your assets during retirement or plan for a special needs family member can be challenging.
Our law practice strives to treat all our clients with the care and respect they deserve and is committed to providing them with quality legal representation. We have comprehensive experience, such as helping parents create special needs trusts or trusts that protect their assets from being seized by a nursing home. Our Woburn estate planning attorneys treat clients like family and work diligently to protect what you have worked so hard to build.
Our experienced legal team can assist you with these complex issues and help you prepare for the next chapter of your life.
Contact our Woburn law firm by calling 781-675-1315 to schedule a consultation with an experienced estate planning attorney who will assist you with your legal needs.