Not sure which one is right for you? An irrevocable family trust can be effective estate planning tool. When an individual establishes this type of trust, he appoints an individual, known as a trustee, to oversee the administration of trust law trust. In Massachusetts, specific rules apply to the trustee.
State law also sets forth the limited circumstances for the modification or termination of the trust. Overview of Irrevocable Family Trusts An irrevocable family trust involves the holding of property for the benefit of one or more relatives. Notice Once an irrevocable family trust is created, Massachusetts law requires that the trustee keep the beneficiaries informed. Specifically, within 30 days after his appointment, the trustee must provide his name and address to the beneficiaries listed in the trust instrument. The trustee is also required to furnish a statement of accounting covering all trust property to the beneficiaries on a yearly basis, or upon request. Modification and Termination In Massachusetts, if all beneficiaries and the settlor consent, the trust instrument may be modified or terminated even if the action conflicts with the reason the trust was created, referred to as the “material purpose” of the trust. An example might be a trust created to support a settlor’s children through college.
Uneconomical Trust Massachusetts law also allows the termination of an irrevocable family if the total value of the trust is so low that continuing to operate the trust becomes impractical. 200,000 and the administrative costs make it no longer possible to effectively carry out the trust’s terms. These legal structures allow a settlor to place investments and property under the management of a trustee. Does an Irrevocable Trust Automatically Terminate Upon a Certain Date? An irrevocable trust is an estate planning tool that the grantor can use for a variety of reasons, including minimizing estate taxes, providing for family members and keeping financial information confidential. Rights of the Beneficiary of an Irrevocable Family Trust An irrevocable family trust is a noncharitable trust set up by the creator, or settlor, for the benefit of family members. How to Break a Trust in Missouri In Missouri, trusts are an effective way to safeguard and transfer property.
Can a Trustee Be Removed for Not Giving a Accounting? A trust involves the holding of property for the benefit of another. What if You Violated an Irrevocable Trust? An offer of membership in our legal plan is not an endorsement or advertisement for any individual attorney. The legal plan is available in most states. We are not a law firm or a substitute for an attorney or law firm.
A testamentary trust is created by a will and arises after the death of the settlor. An inter vivos trust is created during the settlor’s lifetime by a trust instrument. Trusts and similar relationships have existed since Roman times. Trustees thus have a fiduciary duty to manage the trust to the benefit of the equitable owners. They must provide a regular accounting of trust income and expenditures. Trustees may be compensated and be reimbursed their expenses.