Can I Be My Own Trustee Of A Revocable Living Trust?

Can I Be My Own Trustee Of A Revocable Living Trust?

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Creating a revocable living trust is one of the most common estate planning strategies we use for families and individuals in Massachusetts. Many of our clients from Gloucester, Rockport, Manchester By The Sea, Beverly, and across the North Shore often ask the same question: “Can I serve as my own trustee of a revocable living trust?” This is a very practical concern. People want to maintain control over their assets during their lifetime, but also want to make sure they comply with Massachusetts law and avoid costly mistakes. The short answer is yes—you may serve as your own trustee. But it is important to understand the legal implications, how Massachusetts statutes address trusts, and what the consequences may be for you and your family.

What A Revocable Living Trust Means Under Massachusetts Law

A revocable living trust allows you to transfer assets into the trust while retaining the ability to change or revoke it during your lifetime. Under Massachusetts General Laws, Chapter 203E (the Massachusetts Uniform Trust Code), the person who creates the trust (the “settlor”) can also serve as trustee. This means you can manage the assets in the trust the same way you managed them outside of the trust. You retain control, access, and decision-making power.

As your own trustee, you can buy, sell, and invest assets just as you normally would. Because the trust is revocable, you can amend it or even terminate it at any time. Massachusetts law gives wide flexibility to settlors in this regard. However, the fact that the trust is revocable also means that the assets in the trust are still legally considered yours for tax and creditor purposes.

Control Versus Protection

Serving as your own trustee provides maximum control. You don’t give up authority to someone else, which many of our clients find appealing. But there are limits to this control. Because you remain the trustee and the trust is revocable, the assets inside the trust are still counted as part of your estate for both estate tax purposes and Medicaid eligibility. Under Mass. Gen. Laws ch. 190B (Massachusetts Uniform Probate Code), your revocable trust will not remove assets from your estate valuation.

For example, if you are seeking to protect assets from nursing home costs through Medicaid planning, a revocable trust will not achieve that purpose. In that situation, an irrevocable trust may be necessary. Likewise, creditors can still access assets in a revocable trust if you remain the trustee. So while you have control, you do not gain asset protection by serving as trustee of your own revocable living trust.

Successor Trustees And Estate Administration

When you act as your own trustee, it is essential to name a successor trustee in the trust document. Under Massachusetts law, if no successor trustee is named and you become incapacitated, the Probate and Family Court may need to intervene, which can cause delays and expenses for your family. By naming a reliable successor trustee—often a spouse, child, or trusted advisor—you ensure that your affairs continue smoothly without court involvement.

The successor trustee will take over upon your incapacity or death and will be responsible for administering the trust according to your instructions. This is one of the main benefits of revocable trusts: they allow your family to bypass probate while ensuring continuity of management.

Tax Considerations When Acting As Your Own Trustee

When you serve as trustee of your own revocable trust, the IRS and the Massachusetts Department of Revenue treat the trust as a “grantor trust.” That means you continue to file income taxes under your Social Security number, just as you would without the trust. There is no separate trust tax return while you are alive and serving as trustee. After death, however, the trust may become irrevocable and could then require separate filings.

Massachusetts also imposes an estate tax for estates above $2 million. Since assets in a revocable trust are still part of your estate, they are included in calculating that threshold. A revocable trust alone does not avoid the Massachusetts estate tax.

The Practical Answer

Yes, under Massachusetts law, you can be your own trustee of a revocable living trust. It gives you the ability to keep full control over your property while you are alive and competent. But it is not a tool for asset protection, and it will not reduce estate taxes or shield you from creditors. The real advantage is smoother estate administration and avoiding probate for your heirs. The decision should be made with careful thought to your personal goals, family situation, and financial needs.

FAQs About Serving As Your Own Trustee Of A Revocable Living Trust In Massachusetts

Can I Change My Revocable Trust After It Is Created?
Yes, under Massachusetts General Laws Chapter 203E, you can amend or revoke your trust at any time while you are competent. This flexibility is one of the main benefits of a revocable trust.

Does A Revocable Trust Avoid Massachusetts Estate Taxes?
No. Assets in a revocable trust remain part of your taxable estate under Massachusetts law. If your estate exceeds $2 million, the Massachusetts estate tax may apply.

What Happens If I Become Incapacitated While Serving As My Own Trustee?
Your successor trustee, named in your trust document, would step in and manage the trust. This allows your family to avoid a guardianship proceeding in Probate Court.

Can Creditors Access Assets In My Revocable Trust?
Yes. Because you control the trust and it is revocable, creditors can reach those assets. Only an irrevocable trust may provide creditor protection under Massachusetts law.

Do I Still Need A Will If I Have A Revocable Trust?
Yes. A “pour-over will” ensures that any assets not already titled in your trust are transferred into it at your death. Without this, some assets may still require probate.

Can I Serve As Trustee And Also Be The Beneficiary Of My Trust?
Yes, Massachusetts law allows you to serve as both trustee and beneficiary. Many people structure their trusts this way for convenience.

What Is The Role Of A Successor Trustee?
A successor trustee manages the trust after your incapacity or death. They ensure that assets are distributed according to your wishes without court supervision.

Does A Revocable Trust Protect My Assets From Nursing Home Costs?
No. Assets in a revocable trust are still considered available for Medicaid purposes under Massachusetts law. Planning for long-term care often requires irrevocable trusts.

Is A Revocable Trust Public Or Private In Massachusetts?
Unlike probate, a revocable trust is private. When you pass away, the trust does not become a matter of public record unless litigation arises.

Can My Spouse And I Be Co-Trustees Of Our Revocable Trust?
Yes, married couples often serve as co-trustees. This allows either spouse to act on behalf of the trust and ensures continuity if one becomes incapacitated.

Call Attorney Troy Sullivan For a Free Consultation

At The Sullivan Firm P.C., we help families throughout Gloucester, Rockport, Manchester By The Sea, Beverly, and all of Essex County understand their estate planning options under Massachusetts law. If you are considering a revocable living trust and wondering whether you should act as your own trustee, we can guide you through the advantages, risks, and legal requirements. Call The Sullivan Firm P.C. today at 978-325-2721 for a free consultation. Our office is located in Gloucester, Massachusetts, and we proudly serve clients across the North Shore.

Do I Need a Will or Trust, or Both? Answered by a Massachusetts Estate Planning Attorney

Durable Power of Attorney in Massachusetts: Why It’s Essential for Life Planning

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As estate planning attorneys serving Gloucester, Rockport, Manchester by the Sea, Beverly, and communities throughout Essex County, we regularly talk with individuals and families about how to protect their loved ones, assets, and decision-making power during difficult times. One of the most important legal tools we recommend for life planning is a Durable Power of Attorney (DPOA). Many people assume estate planning only applies after death, but true planning addresses what happens during life—especially if illness, injury, or cognitive decline affects your ability to manage your affairs.

A Durable Power of Attorney is a written legal document that allows you to appoint someone you trust—called your “attorney-in-fact” or “agent”—to make financial and legal decisions on your behalf. What makes this power “durable” is that it remains effective even if you become incapacitated. Without this document, no one—not even your spouse or adult children—can legally manage your accounts or handle your personal business unless they go to court and obtain guardianship or conservatorship. That process is time-consuming, expensive, and emotionally draining. A properly executed Durable Power of Attorney avoids all of that.

Under Massachusetts General Laws Chapter 190B, § 5-501, a power of attorney becomes “durable” when the document clearly states that it is not affected by the principal’s subsequent disability or incapacity. This wording is essential. Without it, the authority would automatically end the moment you become legally incapacitated—just when it’s needed most.

Avoiding Court Intervention With A Durable Power Of Attorney

If you don’t have a DPOA and lose the ability to manage your finances, your family must petition the Massachusetts Probate and Family Court for a conservatorship. That means a judge decides who manages your financial affairs, how they do it, and may require ongoing court supervision. This not only delays necessary decisions—like paying bills, selling property, or accessing retirement funds—but also exposes your personal matters to public court records.

By creating a DPOA, you stay in control. You choose who acts for you, and you can define the scope of their authority. For example, you might authorize your agent to handle banking, investments, real estate transactions, tax filings, or business operations. You can give immediate powers or have the DPOA “spring” into effect only if a doctor declares you incapacitated.

Durable Powers Of Attorney Are Not Just For Seniors

We often tell our clients across the North Shore that life doesn’t always give us warning signs. Accidents and illness can affect anyone at any age. That’s why every adult in Massachusetts should consider creating a DPOA as part of their overall life plan. Young professionals, married couples, and business owners all benefit from having someone legally empowered to handle matters if the unexpected occurs.

Without this protection in place, even temporary incapacity can bring financial chaos. Utility bills go unpaid, mortgages default, and important transactions stall—often with lasting consequences. A Durable Power of Attorney ensures business can continue, and your loved ones are not left powerless.

The Legal Requirements In Massachusetts

Massachusetts law does not require a DPOA to be notarized, but we strongly advise it. Most banks, title companies, and financial institutions require a notarized document to accept the agent’s authority. The document must be signed by the principal and should clearly state the durability language. You should also name one or more successor agents in case your first choice cannot serve.

It’s also important to coordinate your DPOA with other documents in your estate plan, such as your will, trust, and health care proxy. Each serves a different role, but they work together to protect you, your assets, and your family.

Clarity, Convenience, And Peace Of Mind

The truth is simple: a Durable Power of Attorney gives you peace of mind. You don’t have to worry about court involvement, frozen accounts, or legal red tape if something happens. Your family doesn’t have to guess what you would have wanted—or fight to be heard. By taking this step today, you’re putting a reliable system in place for the future.

At The Sullivan Firm P.C., we take the time to help you decide who should serve as your agent and how to tailor the DPOA to fit your needs. Whether you live in Gloucester, Rockport, Manchester by the Sea, Beverly, or anywhere in Essex County, we’re here to help you plan ahead with clarity and confidence.

Frequently Asked Questions

What Does A Durable Power Of Attorney Allow Someone To Do In Massachusetts?
A Durable Power of Attorney lets your appointed agent handle financial and legal matters on your behalf. That can include banking, paying bills, selling or refinancing real estate, managing investments, filing taxes, or dealing with government benefits. The powers you grant are defined in the document and can be broad or limited.

Is A Durable Power Of Attorney Valid After Death?
No. A DPOA ends immediately upon the death of the principal. After death, the authority to manage the estate transfers to the personal representative named in your will or appointed by the court if no will exists.

Does A Spouse Automatically Have Power Of Attorney In Massachusetts?
No. Your spouse does not have automatic authority to make legal or financial decisions on your behalf unless you have executed a DPOA giving them that power. Without it, they would need to go to court to obtain conservatorship.

Can I Appoint More Than One Agent In My Durable Power Of Attorney?
Yes. You can name co-agents who must act together or allow them to act independently. You can also name successor agents in case your first choice becomes unable or unwilling to serve.

Do I Need A Lawyer To Draft A Durable Power Of Attorney In Massachusetts?
While it’s not required by law, it is highly recommended. The language in a DPOA must be precise to meet legal standards and practical requirements. An attorney ensures your document is enforceable and tailored to your circumstances.

Can I Revoke Or Change A Durable Power Of Attorney?
Yes. You can revoke or amend a DPOA at any time, as long as you are mentally competent. The revocation must be in writing, and you should notify all institutions and individuals who had the original version.

What’s The Difference Between A Durable Power Of Attorney And A Health Care Proxy?
A DPOA covers financial and legal matters. A Health Care Proxy, governed by M.G.L. c.201D, gives someone authority to make medical decisions if you cannot. Both documents serve different purposes and should be part of a complete life plan.

Can A Power Of Attorney Be Used To Make Gifts Or Change Beneficiaries?
Only if those powers are explicitly stated in the DPOA. Massachusetts courts may not allow agents to make significant gifts or change estate plans unless the document clearly authorizes those actions.

Will My Bank Accept My Power Of Attorney?
Banks and financial institutions may require the document to be notarized or accompanied by a certification. That’s why we prepare DPOAs with all commonly required legal language and encourage clients to notify their financial institutions in advance.

Is My Power Of Attorney Valid In Other States?
Most states honor a DPOA executed in Massachusetts if it meets local requirements. However, it’s wise to review your documents with a local attorney if you move or own property in another state.

Call The Sullivan Firm P.C.

At The Sullivan Firm P.C., we help individuals and families across Gloucester, Rockport, Manchester by the Sea, Beverly, and all of Essex County prepare for life’s unexpected events. A Durable Power of Attorney is one of the most important steps you can take to protect your future. We’ll work with you to create a legally sound and personalized document that reflects your wishes and avoids court involvement.

Call The Sullivan Firm P.C. Today At 978-325-2721 For A Free Consultation. Our office is located in Gloucester, Massachusetts, and we proudly serve clients throughout the North Shore and Essex County. Secure your future now with experienced legal guidance and peace of mind.

Massachusetts Health Care Proxies Explained

Massachusetts Health Care Proxies Explained: Who Will Make Decisions If You Can’t?

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As estate planning attorneys serving Gloucester, Rockport, Manchester by the Sea, Beverly, and the entire North Shore of Massachusetts, we regularly advise clients on one of the most overlooked but vital documents in any estate plan—the health care proxy. A health care proxy is not just for the elderly or the seriously ill. Every adult in Massachusetts should have this document in place, because none of us can predict when a medical emergency might render us unable to communicate.

We’ve helped families across Essex County deal with the consequences of not having a health care proxy in place. When a person is suddenly incapacitated and there’s no legal authority given to a trusted agent, families are often left with uncertainty, conflict, and delays in medical care. Massachusetts law allows adults to choose who will make health care decisions if they lose capacity, but the decision must be made ahead of time and documented correctly.

Without a valid health care proxy, doctors may be left making critical choices without clear guidance from the person’s loved ones. Worse, families may be forced to go to court to establish a guardianship. That process is time-consuming, costly, and emotionally draining. That’s why we strongly encourage every client to make this part of their planning.

What Is A Health Care Proxy In Massachusetts?

Under Massachusetts General Laws Chapter 201D, every competent adult has the legal right to appoint another person to make health care decisions on their behalf if they become incapacitated. This legal document is called a Health Care Proxy. It names an “agent”—typically a spouse, adult child, friend, or trusted individual—who can speak with doctors, access medical records, and make decisions regarding treatment, medication, surgery, and end-of-life care when you are unable to do so.

The law is very specific: the agent’s authority takes effect only when your doctor determines in writing that you lack capacity to make or communicate health care decisions. Until then, you retain full control. That’s one of the biggest misconceptions we see—people worry that signing a health care proxy means giving up control. In reality, it simply ensures someone you trust can step in if needed.

Massachusetts law requires that the proxy be signed in the presence of two adult witnesses, neither of whom can be the named agent. These witnesses must affirm that you appeared to be of sound mind and free from coercion.

Why A Health Care Proxy Is Essential For Every Adult

Whether you’re a 22-year-old college student or an 80-year-old retiree, medical emergencies don’t discriminate by age. If you’re unconscious or unable to speak, and no proxy is in place, your medical team may be legally constrained in communicating with your loved ones. In some cases, family members may disagree about what care is appropriate. Having a health care proxy avoids these conflicts by giving one person clear legal authority to act.

It’s particularly important for unmarried couples and blended families. Under Massachusetts law, a partner who is not a legal spouse does not have default authority to make decisions unless designated in a proxy. If you want your partner—not a parent or sibling—to make decisions, the proxy is the only way to guarantee that outcome.

A health care proxy also allows you to express specific wishes about life-sustaining treatment, pain management, and spiritual considerations through a supplemental document often referred to as a “living will” or “advance directive.” While Massachusetts doesn’t have a statutory form for living wills, we can incorporate guidance directly into the proxy or draft a companion document to provide additional clarity to your agent.

Legal Ramifications Of Not Having A Proxy

If no proxy exists and you become incapacitated, your family may be forced to petition the Probate and Family Court for a guardianship under M.G.L. c. 190B, Article V. This is a public court process that can involve legal fees, delays, and potential disputes between family members. The court may appoint someone who doesn’t know your medical preferences or who doesn’t reflect your personal values. Worse, during the time the guardianship is pending, no one may have legal authority to make immediate decisions about your care.

Creating a valid proxy gives you peace of mind that your wishes will be respected and your loved ones won’t be left in the dark during a medical crisis.

Massachusetts Health Care Proxy Frequently Asked Questions

What Is The Difference Between A Health Care Proxy And A Durable Power Of Attorney?
A health care proxy authorizes someone to make medical decisions when you can’t. A durable power of attorney typically authorizes someone to handle financial and legal matters. They serve different but equally important roles in your estate plan.

Does My Health Care Proxy Need To Be Notarized In Massachusetts?
No. Massachusetts law does not require notarization. The proxy must be signed in the presence of two disinterested witnesses who attest that you appeared to be competent and free from coercion.

Can I Name More Than One Person In My Proxy?
You can name one primary agent and one alternate agent in case your primary is unavailable. However, Massachusetts law does not allow two co-agents to act simultaneously. It’s important to choose someone you trust and discuss your wishes with them ahead of time.

When Does The Health Care Proxy Go Into Effect?
Your agent’s authority begins only after your attending physician has determined, in writing, that you are incapable of making or communicating your own health care decisions. Until then, you make your own choices.

Can I Revoke Or Change My Proxy Later?
Yes. You can revoke or update your health care proxy at any time while you have the capacity. It’s a good idea to review your proxy every few years and update it after major life changes such as marriage, divorce, or death of your agent.

Do Hospitals And Doctors In Massachusetts Recognize Out-Of-State Proxies?
Generally, Massachusetts providers will honor out-of-state health care proxies if they appear valid. However, it’s best to have one prepared under Massachusetts law to avoid confusion or rejection during a crisis.

Should I Give Copies Of My Proxy To My Family And Doctor?
Yes. Your health care proxy should be shared with your primary care doctor, hospital, and the named agent. We also recommend keeping a copy in an accessible location and storing a digital version.

Is A Living Will Legally Binding In Massachusetts?
Massachusetts does not have a statute that gives legal effect to living wills. However, a living will can be a helpful guide for your agent when making difficult decisions and can be included as a supplemental directive.

What Happens If I Don’t Have A Health Care Proxy?
Without a proxy, no one has automatic legal authority to make decisions for you. This can delay treatment or force your loved ones into court to seek a guardianship. The court process can be stressful, expensive, and may not reflect your wishes.

Can My Spouse Automatically Make Decisions Without A Proxy?
Not necessarily. While medical professionals may consult with a spouse, they are not legally required to follow their decisions without proper documentation. Having a signed proxy avoids this uncertainty.

Call The Sullivan Firm P.C. For a Free Consultation

At The Sullivan Firm P.C., we work with individuals and families across Gloucester, Rockport, Manchester by the Sea, Beverly, and throughout Essex County to create legally sound, protective estate plans that include health care proxies. We believe everyone—regardless of age—should have a trusted agent designated to make medical decisions if the unthinkable happens.

Call The Sullivan Firm P.C. at 978-325-2721 for a free consultation. Our office in Gloucester, Massachusetts is ready to help you prepare this essential document so your wishes are honored and your loved ones are protected.

irrevocable trust attorney in Massachusetts

How an Irrevocable Trust Can Protect Your Assets in Massachusetts

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As estate planning attorneys serving clients in Gloucester, Rockport, Manchester by the Sea, Beverly, and throughout the North Shore, we work with many families who want to preserve their hard-earned assets for future generations. For Massachusetts residents concerned about long-term care expenses, estate taxes, or shielding assets from creditors, an irrevocable trust is one of the most effective legal tools available.

Creating an irrevocable trust is a major decision. Unlike a revocable trust, once an irrevocable trust is funded and executed, you generally cannot change it or take assets back. But with that permanence comes real protection. If properly structured and managed, an irrevocable trust can remove assets from your taxable estate, protect your home and savings from being lost to nursing home care, and prevent lawsuits or creditors from reaching certain property.

Under Massachusetts law, irrevocable trusts must meet specific legal requirements to provide the intended protections. When set up correctly, this type of trust can give you peace of mind knowing that your family’s financial future is secure.

Long-Term Care Planning And The Five-Year Look-Back

One of the most common reasons we help clients create irrevocable trusts is to plan for future long-term care. Massachusetts residents who may need MassHealth (Medicaid) benefits to pay for nursing home care must meet strict financial eligibility limits. If you own too many assets, including your home, you may be required to spend down your estate before qualifying.

By placing your home or other assets into an irrevocable trust, those assets can be protected—so long as the transfer is done early enough. MassHealth applies a five-year look-back period to any transfers made into a trust. That means assets placed in the trust at least five years before applying for long-term care coverage will generally not be counted against you. This rule is outlined under the Code of Massachusetts Regulations, 130 CMR 520.019, which governs trust treatment for MassHealth eligibility.

It’s important to understand that if you retain too much control over the trust or use assets in ways that violate MassHealth rules, the protection can be lost. That’s why careful drafting is critical.

Protecting Your Family Home From Estate Recovery

Even if you qualify for MassHealth and receive long-term care benefits, the Commonwealth of Massachusetts has the right to pursue “estate recovery” after your death. This means MassHealth may file a claim against your estate to recover what it spent on your care. That claim often targets your home, leaving your family at risk of losing it.

If your home is placed into an irrevocable trust—assuming it’s properly structured and the five-year look-back period has passed—it can be excluded from your probate estate. That makes it inaccessible to MassHealth estate recovery. Under M.G.L. c. 118E, § 31, the state is limited to recovering assets that are part of the probate estate, not assets inside a properly created irrevocable trust.

Asset Protection Against Creditors And Lawsuits

An irrevocable trust can also help protect assets from creditors or lawsuits. Once assets are transferred into the trust, they are no longer legally owned by you. If you are sued or face personal liabilities, trust property is generally off-limits—so long as the trust was not created to defraud creditors.

This type of protection is especially useful for individuals in professions or businesses with liability exposure, or for anyone seeking to ensure their children or spouse receive protected inheritances.

Tax Benefits And Estate Reduction

Massachusetts currently imposes an estate tax on estates over $2 million (as of 2024). An irrevocable trust can be used to remove life insurance policies, appreciating investments, or real estate from your taxable estate. By moving these assets into an irrevocable trust, they can grow outside of your estate and reduce the overall tax burden on your heirs.

Certain irrevocable trusts, such as Irrevocable Life Insurance Trusts (ILITs), are designed specifically for this purpose. Massachusetts follows federal tax principles when evaluating whether trust assets should be included in your estate, so proper legal guidance is key to avoiding unintended consequences.

Why This Type Of Trust Requires Careful Planning

While irrevocable trusts offer powerful protections, they are not one-size-fits-all. You give up ownership and access to the assets you place in the trust. If you need those funds later, you may be unable to use them. That’s why we always begin with a clear understanding of your financial picture, your health, your goals, and your family’s needs.

We create each trust carefully under M.G.L. c. 203E (Massachusetts Uniform Trust Code) and ensure all terms comply with state and federal law. Every trust we draft is tailored to fit our client’s specific estate plan.

Irrevocable Trust Frequently Asked Questions

What Is An Irrevocable Trust And How Is It Different From A Revocable Trust?
An irrevocable trust cannot be changed or revoked once it is signed and funded. Unlike a revocable trust, where you maintain control, an irrevocable trust removes assets from your ownership, offering stronger protection from creditors, taxes, and MassHealth.

Can I Still Live In My Home If It’s In An Irrevocable Trust?
Yes, if the trust is drafted to allow it, you can retain the right to live in your home for the rest of your life. However, you cannot retain full ownership or control. This arrangement must be clearly stated in the trust document.

When Should I Create An Irrevocable Trust In Massachusetts?
If you’re concerned about long-term care costs, estate taxes, or asset protection, you should consider setting up the trust at least five years before you may need MassHealth benefits to avoid penalties related to the look-back period.

Are Assets In An Irrevocable Trust Still Subject To Probate?
No. Assets in an irrevocable trust are not part of your probate estate. They pass directly to your beneficiaries under the terms of the trust, which helps avoid the probate process and protects privacy.

Can I Name My Children As Beneficiaries Of My Irrevocable Trust?
Yes, you can name your children, grandchildren, spouse, or other individuals as beneficiaries. The trust terms control how and when distributions are made to them, which can be structured for asset protection and tax efficiency.

Will I Still Pay Taxes On Income Earned By The Trust?
That depends on the type of irrevocable trust. Some trusts are structured as grantor trusts, where the income is taxed to you, while others are taxed as separate entities. We help clients choose the most beneficial tax structure.

Can I Serve As Trustee Of My Own Irrevocable Trust?
In most cases, no. To maintain the protections, you typically must appoint someone else—such as a child, sibling, or trusted advisor—as trustee. You can retain some influence, but not control over distributions or trust assets.

What Happens If I Need Money From The Trust Later?
You generally cannot access funds once they are placed in an irrevocable trust. That’s why it’s important to carefully evaluate your future needs and only place surplus assets into the trust.

Can An Irrevocable Trust Protect Against Nursing Home Costs?
Yes, when structured properly and funded at least five years before applying for MassHealth, the assets in the trust are not counted toward eligibility. This is one of the main benefits of this planning tool in Massachusetts.

Do I Still Need A Will If I Have An Irrevocable Trust?
Yes. A will can direct any remaining assets that were not placed in the trust into the trust at your death (via a pour-over will) and can also appoint guardians for minor children. Both documents should work together.

Call The Sullivan Firm P.C. For a Free Consultation

At The Sullivan Firm P.C., we help families throughout Gloucester, Rockport, Manchester by the Sea, Beverly, and across the North Shore understand when an irrevocable trust makes sense—and how to use it properly. If you’re looking to protect your home, savings, and loved ones from long-term care costs or estate taxes, let us show you how strategic planning can preserve what you’ve worked so hard to build.

Call The Sullivan Firm P.C. Today At 978-325-2721 For A Free Consultation. Our office is located in Gloucester, Massachusetts, and we serve clients across Essex County. Let’s work together to protect your legacy with confidence and care.

Is A Revocable Living Trust Valid In Massachusetts?

Is A Revocable Living Trust Valid In Massachusetts?

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For many families in Gloucester, Rockport, Manchester by the Sea, Beverly, and throughout the North Shore, one of the most common estate planning questions we receive is whether a revocable living trust is legally valid in Massachusetts. The answer is yes. A revocable living trust is fully recognized under Massachusetts law and is an effective tool for managing your assets both during your lifetime and after your death.

Revocable living trusts are flexible, private, and help avoid the delays and costs associated with probate court. They allow us to transfer property to our chosen beneficiaries without court involvement, which is especially helpful for real estate, financial accounts, and other assets that may otherwise be subject to lengthy proceedings. But creating a valid trust requires more than just filling out a template—it must be drafted, signed, and funded properly to have legal effect.

Massachusetts law recognizes and enforces revocable trusts, but the trust must meet specific legal requirements and must be properly administered over time. A poorly written or unfunded trust can lead to court battles, unintended tax consequences, and family disputes. That’s why we always recommend working with an attorney familiar with the Massachusetts Uniform Trust Code and the practical issues that arise under state law.

What Makes A Revocable Living Trust Valid In Massachusetts?

Under Massachusetts General Laws Chapter 203E, also known as the Massachusetts Uniform Trust Code (MUTC), a revocable living trust is a written agreement where the person creating the trust (called the “grantor” or “settlor”) transfers legal ownership of assets to a trustee for the benefit of beneficiaries. The trust remains revocable during the grantor’s lifetime, meaning the grantor can change or revoke it at any time, so long as they are mentally competent.

According to M.G.L. c. 203E, § 402, a trust is created when the following elements are present:

  • The settlor has the intent to create a trust;
  • There is a definite beneficiary;
  • The trustee has duties to perform;
  • The trust serves a lawful purpose.

As long as these conditions are met and the trust is signed by the grantor (and notarized for practical purposes), the trust is valid. If you are both the grantor and the trustee—as many people are when creating a living trust—the law still recognizes it as a valid trust.

Properly Funding The Trust Is Essential

One of the biggest mistakes we see is when people establish a valid trust but fail to fund it. Funding means transferring legal ownership of assets—like your house, bank accounts, or brokerage accounts—into the name of the trust. If the trust is never funded, then those assets will still be subject to probate and the trust may have little or no effect.

For example, even if your revocable trust is legally sound, if your home is still titled in your name instead of the trust, it won’t avoid probate unless you’ve taken steps to retitle it. This often requires recording a new deed with the Essex County Registry of Deeds. Failing to properly fund your trust can undermine the entire estate plan.

A Trust Works Alongside Other Planning Documents

While a trust is powerful, it is not a complete estate plan on its own. You will still need a pour-over will, health care proxy, and durable power of attorney to ensure you’re protected in life and death. A pour-over will directs any remaining assets not titled in the trust to be “poured” into the trust upon your passing. This provides a safety net for any assets you may have missed during your lifetime.

Massachusetts residents who only create a trust and skip these other critical documents risk leaving gaps in their plan. That’s why our estate planning process always includes a full set of documents that work together.

Trusts Offer Key Benefits For Massachusetts Families

The benefits of a valid revocable trust go beyond just probate avoidance. For many of our clients, the privacy and control they provide are just as important. Unlike a will, which becomes a public court record during probate, a trust remains private. Trusts also help manage your affairs if you become incapacitated, allowing your successor trustee to take over without needing court approval.

A revocable trust gives you the ability to plan for blended families, minor children, disabled beneficiaries, and specific distribution instructions that a simple will cannot handle effectively. It also allows for continuity in the event of incapacity, which is especially important as we age.

Massachusetts Revocable Living Trust Frequently Asked Questions

Is A Revocable Living Trust Recognized Under Massachusetts Law?
Yes. Revocable living trusts are fully valid and enforceable under the Massachusetts Uniform Trust Code (M.G.L. c. 203E). The law allows residents to create, manage, amend, or revoke these trusts during their lifetime.

Do I Still Need A Will If I Have A Revocable Trust?
Yes. A pour-over will is essential even if you have a trust. It ensures that any assets not titled in the name of the trust are still distributed according to your wishes and placed into the trust at death.

Can I Be Both The Grantor And The Trustee Of My Trust?
Yes. In Massachusetts, it’s common for the person who creates the trust to also serve as the initial trustee. You should name a successor trustee to take over when you pass away or become incapacitated.

Does My Trust Avoid All Probate In Massachusetts?
Only assets that are properly titled in the trust can avoid probate. If you fail to retitle accounts or property, those assets may still go through the probate process.

Can I Revoke Or Change My Trust Later?
Yes. As long as you are mentally competent, you can revoke, amend, or restate your trust at any time during your life.

What Happens If My Trust Conflicts With My Will?
If your will and trust contradict each other, it may result in legal disputes. A well-drafted estate plan should be internally consistent and avoid these types of conflicts.

Can My Trust Help Me Plan For Incapacity?
Yes. A revocable trust allows your successor trustee to manage your affairs if you become incapacitated, without requiring a court-appointed guardian or conservator.

Do I Need To File My Trust With The Court?
No. A revocable living trust is a private document and does not need to be filed with the Massachusetts Probate and Family Court unless a dispute arises.

What Kind Of Property Should Be Put Into My Trust?
Real estate, bank accounts, investment accounts, and other valuable assets should typically be retitled into the name of your trust. Retirement accounts usually remain in your name with beneficiary designations.

Can A Trust Help Me Protect My Children’s Inheritance?
Yes. A trust can include provisions to delay or control when and how your children receive their inheritance, helping to protect it from poor financial decisions, divorce, or creditors.

Call The Sullivan Firm P.C. For a Free Consultation

At The Sullivan Firm P.C., we help individuals and families throughout Gloucester, Rockport, Manchester by the Sea, Beverly, and the entire North Shore of Massachusetts build estate plans that actually work. A revocable living trust is a powerful tool, but it must be properly drafted, funded, and coordinated with your full plan to be effective.

Our law offices are located in Gloucester, Massachusetts, and we proudly serve clients across Essex County. Let us help you protect your family, preserve your assets, and gain peace of mind.

What You Should Know about Revocable Living Trusts Under Massachusetts Law.

Understanding Revocable Living Trusts Under Massachusetts Law: What You Should Know

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As an estate planning attorney serving Gloucester, Rockport, Manchester by the Sea, Beverly, and the greater North Shore, we have guided countless families through the process of protecting their assets and planning for the future. One of the most valuable tools available to Massachusetts residents is the revocable living trust. While often misunderstood, this estate planning document can offer flexibility, privacy, and probate avoidance—when created and used properly.

Many clients come to us after hearing about trusts from friends or financial advisors, but they’re unsure if a revocable living trust is the right fit. We believe it’s important to provide practical, legally accurate information. Massachusetts law permits individuals to create revocable living trusts to manage assets during their lifetime and distribute them at death without going through probate. However, the trust must be properly drafted, funded, and maintained. Without these critical steps, the trust may fail to achieve its intended goals.

What Is A Revocable Living Trust And How It Works In Massachusetts

A revocable living trust is a written agreement that allows us to transfer ownership of assets into the name of a trust that we control during our lifetime. Under Massachusetts law, these trusts are governed primarily by the Massachusetts Uniform Trust Code (MUTC), found in Massachusetts General Laws Chapter 203E. Section 603 specifically allows the person who creates the trust—known as the settlor or grantor—to also serve as the trustee and beneficiary during life, retaining full control over the assets.

Because the trust is revocable, we can change, amend, or revoke it entirely at any time while we are mentally competent. This flexibility makes it an appealing option for those who want to retain control but also avoid probate and reduce administrative headaches for their families.

Upon our death, a named successor trustee takes over, following the terms of the trust to distribute assets to our chosen beneficiaries. Unlike a will, which must pass through the probate process under M.G.L. c. 190B, a properly funded revocable trust allows our assets to transfer directly, privately, and efficiently—without court oversight.

Key Benefits Of A Revocable Living Trust In Massachusetts

One of the main advantages of a revocable trust is avoiding probate. In Massachusetts, probate can be a lengthy and public process. Assets held in a trust pass immediately to beneficiaries according to the terms of the trust, without delays or additional court costs.

Another important benefit is privacy. Probate records are public, meaning anyone can access details about your estate. Trusts are private documents and are not filed with the probate court unless contested.

Revocable living trusts also provide continuity of asset management if we become incapacitated. Without a trust, managing our financial affairs would likely require a court-appointed guardian or conservator. With a trust in place, the successor trustee can step in immediately to manage assets without court intervention.

Additionally, trusts can be structured to delay distributions to beneficiaries, protect young or financially inexperienced heirs, and reduce the risk of inheritance mismanagement.

Funding The Trust: A Common Mistake In Massachusetts Estate Plans

One of the most common issues we see in Essex County is that clients set up a revocable trust but fail to fund it. Funding means transferring ownership of assets—real estate, bank accounts, investment accounts, and personal property—into the name of the trust.

If this step is missed, the assets remain in the individual’s name and will still be subject to probate. That’s why we always stress the importance of properly titling assets and updating beneficiary designations where appropriate. A trust is only as effective as the assets it holds.

Massachusetts Law Supports Flexibility—But Precision Is Essential

The MUTC gives residents wide latitude to create and amend revocable trusts, but the language of the trust must be precise. Any ambiguities can lead to court involvement, particularly if heirs or beneficiaries raise questions.

As attorneys, we also coordinate your trust with other essential documents, including your pour-over will, durable power of attorney, and health care proxy. These documents work together to provide complete legal coverage. Without this coordination, your trust could be undermined or assets could be left unaccounted for.

Massachusetts Estate Planning Frequently Asked Questions

Is A Revocable Living Trust Valid In Massachusetts?
Yes. Massachusetts law under Chapter 203E recognizes revocable trusts as legally valid estate planning tools. The trust must be created by a competent adult and signed with appropriate formalities.

Can I Be The Trustee Of My Own Trust?
Yes. Most people who set up a revocable trust in Massachusetts serve as both the trustee and the beneficiary during their lifetime. You must also name a successor trustee to manage the trust after incapacity or death.

Does A Revocable Trust Avoid Probate In Massachusetts?
Yes, but only for assets that are properly titled in the name of the trust. If you fail to transfer an asset into the trust, that asset may still go through probate.

Can I Change My Revocable Trust After It’s Signed?
Absolutely. You can amend or revoke your trust at any time while you are mentally competent. This flexibility is one of the main benefits of using a revocable living trust.

Do I Still Need A Will If I Have A Trust?
Yes. You should have a pour-over will that directs any remaining assets into the trust at death. The will also allows you to name guardians for minor children and serves as a backup for any assets not titled in the trust.

Does A Revocable Trust Protect My Assets From Nursing Home Costs?
No. Because you retain control over the assets in a revocable trust, they are still considered available resources for purposes of MassHealth (Medicaid) eligibility. Only an irrevocable trust can provide that kind of protection.

Is A Revocable Trust More Expensive Than A Will?
The upfront cost is usually higher, but the long-term savings in probate fees, court costs, and time often make it a better value for families with property or multiple assets.

Who Should Have A Revocable Trust In Massachusetts?
Anyone who wants to avoid probate, maintain privacy, plan for incapacity, or manage family inheritances may benefit from a trust. It is particularly helpful for those with real estate, blended families, or out-of-state property.

Can A Revocable Trust Own Real Estate In Another State?
Yes. A revocable trust can hold property in any state, helping to avoid ancillary probate in places outside Massachusetts.

What Happens If I Forget To Fund My Trust?
Assets not transferred into your trust will remain subject to probate. Your pour-over will can direct those assets into the trust, but this still requires court involvement, defeating one of the trust’s primary advantages.

Call The Sullivan Firm P.C. For a Free Consultation

At The Sullivan Firm P.C., our estate planning lawyer in Gloucester helps families across Gloucester, Rockport, Manchester by the Sea, Beverly, and all of Essex County understand and create effective revocable living trusts under Massachusetts law. Whether you want to avoid probate, protect your privacy, or plan for your loved ones’ futures, we’re here to make sure every piece of your estate plan works together.

Call The Sullivan Firm P.C. Today At 978-325-2721 For A Free Consultation. Our offices are located in Gloucester, Massachusetts, and we proudly serve clients throughout the North Shore and Essex County. Let’s make sure your trust does what it’s supposed to do—protect what matters most.

The Importance of An Estate Plan If You Have Young Children

The Importance of An Estate Plan If You Have Young Children

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Estate planning allows parents to plan for who will care for their children and how they are cared for, ensures their property will pass to whom they want, the way they want and when they want and determines who will handle the property they leave to their children.

Minors need parents, and if you pass away prior to your child turning 18, who will care for them?  If you don’t decide and document it in a plan, the court will decide for you.

If you have children, especially young children, here are a few things to think about:

  • Do you have clear instructions for the way you would like your guardian to raise your kids?
  • Do you have an emergency guardian in place in case of an accident?
  • Have you thought about leaving your property to your minor children?  Who will oversee their inheritance?
  • Your children, first and foremost, need food, clothing and shelter when you are gone.  Do they have access to their inheritance right away?
  • How will your children pay for college?
  • Will your children’s inheritance be protected from creditors, divorce and lawsuits?

These are only a few of the important issues that parents with young children face.

Do I Need a Will or Trust, or Both? Answered by a Massachusetts Estate Planning Attorney

Do I Need a Will or Trust, or Both? Answered by a Massachusetts Estate Planning Attorney

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Do I Need a Will or Trust, or Both? Answered by a Massachusetts Estate Planning Attorney

Many people are familiar with the terms “will” and “trust,” however, they don’t exactly know the difference, nor do they know which is more appropriate to address their needs. Being proactive with your financial planning and asset protection is the first step to taking care of your assets and your family when you pass. The next important step is determining which type of protection and planning will fulfill your wishes and make the most sense for your individual set of circumstances. 

Do you need a will or trust, or both?

Specifically, while a will and a trust serve different purposes and can each be drafted individually for a client, they may also cohesively work together to make an airtight plan as well. To learn more about what type of estate plan is right for you, it is critical to hire an experienced and qualified estate planning attorney who can discuss all of your legal options to ensure you are adequately protected and secure.

Wills, Explained

When you die, a will protects and addresses any property that is in your name and not held in a trust or joint tenancy (with your spouse). It is important to keep in mind that a will must pass through the court system, specifically through the probate department. This means that the court will oversee the validity of the will and handle all distributions and allocations of the property stated therein. Considering that a will must be processed through the court system and in turn, becomes public record, this may or may not be the right estate plan for you.

Trusts, Explained

On the other hand, a trust only covers property that has been assigned or transferred into the trust; property is not covered automatically. A trust is a legal document and agreement set up by a “grantor,” providing a “trustee” with the duty of holding legal title to property for the benefit of another person, called a “beneficiary.” A trust can be created as revocable, in order to provide flexibility, or irrevocable (cannot be revoked), depending on the grantor’s needs and goals. Unlike a will, a trust does not have to go through the court system’s probate department, which can alleviate time and resources and also keeps the matter more private.

How a Massachusetts Estate Planning Attorney Can Help You

Let us help you achieve your unique estate planning goals, as our qualified Massachusetts Estate Planning & Probate Attorneys will assess your goals and needs to ensure you receive a plan that works for you. Call The Sullivan Firm, P.C. today at (978) 325-2721 to arrange a free-of-charge exploratory meeting. Together, we can preserve, protect and provide for your loved ones.

Troy Sullivan, Massachusetts Estate Planning Attorney

The Sullivan Firm, P.C. is a boutique probate and estate planning law firm serving the North Shore and Cape Ann of Massachusetts including Gloucester, Rockport, Manchester and Beverly. The firm concentrates on estate planning matters, including trusts, wills, healthcare proxies, life planning, probate, special needs trusts, and trust administration. 

Smart Estate Planning For A Family Business

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Is a HIPAA-release required for Massachusetts Health Care Proxies?

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What is a HIPAA Release?

The Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) is a federal law that protects the privacy and security of individuals’ medical records in the United States. Generally, HIPAA prohibits health care providers and insurance companies from disclosing a patient’s medical information to third parties without the patient’s prior written authorization in the form of a HIPAA Release. However, what happens if you become incapacitated and cannot provide written authorization to allow your health care agent to see your records?  The experienced and knowledgeable attorneys at The Sullivan Firm, P.C. will draft the necessary documents as part of your estate plan to ensure that your health care agent can review your medical records if the need ever arises so they can make an informed decision about your treatment.

What is a Health Care Proxy?

In Massachusetts, any person over the age of 18 may execute a health care proxy. A health care proxy is a legal document that designates an adult, called an agent, to make medical decisions on behalf of another, known as principal, if the principal becomes incapacitated. An agent can be almost anyone but is the most frequently a spouse, child, parent, relative, or close friend. According to Massachusetts General Law chapter 201D, §5, known as the Massachusetts Health Care Proxy Act (the “Act”), an agent is responsible for making health care decisions for the principal as if the principal was making them personally.  An agent may be asked to make decisions about life-support, such as ventilators, feeding tubes, artificial hydration, or other medical treatments.

Keep in mind that the agent cannot make those decisions without guidance. Specifically, Section 5 of the Act instructs him or her to consult all of the principal’s health care providers and consider acceptable medical alternatives regarding “diagnosis, prognosis, treatments and their side effects.”  After consultation, the agent makes a treatment decision in accordance with the principal’s “religious or moral beliefs,” or if those beliefs are not known to the agent, then the agent must make a decision based upon the agent’s perception of the principal’s best interests.

When would I need both a HIPAA and Health Care Proxy?

An agent may need to consult the patient’s medical records to make the best decision for the principal. While Section 5 of the Act grants the agent the right to review confidential patient information  to make this decision, the HIPAA privacy rule, as stated above, appears to conflict with Massachusetts Health Care Proxy law if there is no authorization on file with the health care provider. Analysis of the HIPAA rules, however, reveals that a principal’s personal representative, as designated by state law, may review confidential patient records. Therefore, in Massachusetts, a health care provider may allow an agent to review a principal’s medical records without prior written authorization.

Is there a better alternative?

There are alternatives to relying upon statutory analysis to resolve this conflict. The better practice for an estate planning attorney to follow when drafting a health care proxy for a client is to include language in the document itself expressly permitting the agent, in accordance with Massachusetts law and HIPAA, to review all confidential medical documentation necessary to make an informed decision.  Additionally, people suffering from a life-threatening illness should consider having their physician write a “Medical Order Regarding Life-Sustaining Treatment” (“MOLST”).  As the name indicates, a MOLST is a medical order written by your physician obligating health care providers to follow if the need arises. A MOLST becomes effective as soon as it is signed, unlike a health care proxy which only becomes effective after incapacitation. A MOLST may not be a viable option for everyone. Therefore, you should consult your physician to see if your medical condition meets the specific legal requirements.