What a revocable living trust does
Control while you live, a smooth handoff afterward, and the things a trust cannot do.
The basic idea
A revocable living trust is an arrangement you create to hold your property. You sign a trust agreement, name yourself as trustee, and name a successor trustee to take over later. The property is then put in the name of the trust.
While you are alive and well, very little changes. You buy, sell, and spend as before. Revocable means you can amend the trust or revoke it completely.
What it does well
- Avoids probate for the property the trust holds
- Lets your successor trustee manage things if you become unable to, without a court appointed conservator
- Keeps the details private, since the trust is generally not filed in court
- Lets you set terms, such as holding a child's share in trust until an age you choose
What it does not do
Because you keep control, the law treats the property as still yours. A revocable trust does not reduce income taxes, does not protect your savings from your own creditors, and does not shield savings from nursing home costs. Those goals involve different tools and different timing.
Couples and taxes
Married couples may use one joint trust or separate trusts. The choice can turn on the Massachusetts estate tax, family circumstances, and simplicity, and it is one of the decisions worth discussing with an attorney.
The step that makes it work
A trust only controls property that is actually in it. Moving property into the trust is called funding, and it is the step most often left undone. The guide to funding your trust explains how it works.
Common questions
Do I lose control of my property?
No. As trustee of your own revocable trust you keep full control, and you can change the terms whenever you want.
Do I still need a will?
Yes. A short pour over will catches anything left outside the trust and names a guardian for minor children.
Check your understanding
Three quick questions. Nothing is saved or sent.
1Who usually controls a revocable trust while you are alive and well?
You typically serve as your own trustee and keep full control.
2Does a revocable trust shield savings from nursing home costs?
Because you can revoke it, the property is still treated as yours.
3What makes a trust avoid probate for a piece of property?
Only property actually held by the trust avoids probate.
Official sources
Keep learning
Everything here is general education about Massachusetts law, written by WisePath Estate Planning. It is not legal advice for your situation, and reading it does not make you our client.