Does A Revocable Living Trust Avoid Probate In Massachusetts?

August 22, 2025/in Trust Formation

As estate planning attorneys serving Gloucester, Rockport, Manchester by the Sea, Beverly, and across the North Shore, we are frequently asked whether a revocable living trust guarantees that a family will not face probate in Massachusetts. While trusts are powerful tools, the answer is more nuanced. A properly funded revocable trust can help your loved ones avoid probate for most, if not all, of your estate. However, if assets are not transferred into the trust during your lifetime, probate may still be required under Massachusetts law.

A revocable trust allows you to maintain control over your assets while you are alive, with the flexibility to amend or revoke it as your circumstances change. Upon your death, the trust becomes irrevocable, and your chosen trustee distributes assets according to your instructions. Unlike probate, this process is private and generally faster. But the key to avoiding probate lies in funding the trust correctly, which means re-titling property and accounts into the trust’s name during your lifetime.

Massachusetts Probate And The Role Of Trusts

Probate is the court-supervised process of distributing a deceased person’s estate. In Massachusetts, probate is governed by the Massachusetts Uniform Probate Code (MUPC), codified in Massachusetts General Laws Chapter 190B. If someone passes away owning assets solely in their name, those assets typically must go through probate unless they qualify for simplified small estate procedures under M.G.L. c.190B, § 3-1201.

When assets are properly transferred into a revocable trust, they are no longer owned individually but by the trust. Because the trust continues to exist after death, those assets bypass the probate process. This is the primary reason many Massachusetts residents create revocable living trusts.

Why Funding The Trust Matters

Creating a trust is only the first step. If you fail to retitle bank accounts, real estate, or investment accounts into the name of the trust, those assets remain outside the trust and may still require probate. For example, if your home in Gloucester is not deeded into your trust, it will pass through probate unless other estate planning measures are in place.

We often prepare pour-over wills alongside revocable trusts. Under M.G.L. c.190B, § 2-511, pour-over provisions allow any assets left outside the trust at the time of death to be transferred into the trust through probate. While this ensures your plan is carried out, it does not eliminate probate for those assets.

Assets That Typically Avoid Probate Without A Trust

It is also important to understand that some assets avoid probate automatically, even without a trust. These include jointly owned property with rights of survivorship, accounts with transfer-on-death or payable-on-death designations, and certain retirement accounts with named beneficiaries. Still, a revocable trust provides a more comprehensive and controlled way to avoid probate and protect your family from unnecessary court involvement.

Why A Trust Alone May Not Be Enough

While a revocable living trust can minimize or eliminate probate, a trust alone cannot name guardians for minor children or handle certain personal matters. For that reason, a will remains necessary to complement your trust. The combination of a properly funded trust and a carefully drafted will creates a complete estate plan that reduces probate risks while covering essential legal requirements.

Massachusetts Trust Frequently Asked Questions

Does Every Revocable Trust Avoid Probate In Massachusetts?
No. A revocable trust only avoids probate for assets that have been properly transferred into it. If property or accounts remain outside the trust, those assets may still require probate under Massachusetts law.

What Happens If I Forget To Transfer Assets Into My Trust?
If you die with assets left outside your trust, those assets may go through probate. A pour-over will can direct those assets into your trust, but it still requires court involvement.

Can Real Estate Be Transferred Into A Revocable Trust In Massachusetts?
Yes. Real estate can be deeded into a revocable trust. This is a common step in funding the trust and is particularly valuable in Massachusetts, where real estate often represents a significant portion of a family’s estate.

Do Bank Accounts Need To Be In The Trust To Avoid Probate?
Yes. If bank accounts remain in your personal name, they will generally need to be probated unless they have a joint owner or beneficiary designation. Retitling them into the trust avoids probate.

Is A Revocable Trust Private Compared To Probate?
Yes. Probate is a public process, while trust administration is private. This privacy is one of the main reasons families in Essex County use revocable trusts.

Can Retirement Accounts Be Placed In A Revocable Trust?
Usually, retirement accounts are not retitled in the name of a trust during life. Instead, you can name your trust as a beneficiary if that fits your overall plan. This decision should be made carefully to avoid adverse tax consequences.

What Happens If My Will And Trust Conflict?
If your will and trust contain inconsistent provisions, the outcome will depend on the circumstances and court interpretation. This is why coordinated drafting of both documents is essential.

Can A Revocable Trust Protect Against Creditors Or Long-Term Care Costs?
No. Because a revocable trust is still within your control, its assets remain available to your creditors and may be considered in long-term care planning. An irrevocable trust is needed for asset protection.

Is Probate Always Bad In Massachusetts?
Not necessarily. Probate can be time-consuming and public, but in some cases it may be straightforward. Still, most families prefer to avoid it when possible through proper trust funding.

Should I Have Both A Trust And A Will?
Yes. A revocable trust avoids probate for properly transferred assets, while a will ensures any assets outside the trust are handled correctly and allows you to name guardians for minor children.

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 the entire North Shore ensure that their estate plans are complete, enforceable, and effective. If you are considering a revocable living trust or want to confirm that your existing trust is properly funded, we can help protect your family from unnecessary probate and ensure your wishes are honored.

Call The Sullivan Firm P.C. today at 978-325-2721 for a free consultation. Our offices are conveniently located in Gloucester, Massachusetts, and we proudly serve clients across Essex County.

How Is A Revocable Living Trust Taxed In Massachusetts?

August 21, 2025/in Trust Formation, Trust Services

As estate planning attorneys serving Gloucester, Rockport, Manchester by the Sea, Beverly, and communities throughout the North Shore and Essex County, we know that one of the most frequent questions clients ask is how a revocable living trust is taxed. Revocable trusts are popular because they help families avoid probate, provide privacy, and allow for smooth management of assets. But when it comes to taxation, the rules are often misunderstood.

In Massachusetts, a revocable living trust does not provide income tax savings during your lifetime. Because the trust is revocable, the Internal Revenue Service and the Commonwealth treat the assets as though they are still owned by you personally. That means income earned by trust assets is reported on your individual tax return, just as if you had never created the trust. Understanding how Massachusetts General Laws and federal statutes apply to revocable trusts is critical to making informed planning decisions.

Taxation Of Revocable Living Trusts During Lifetime

When you create a revocable living trust in Massachusetts, you remain in control. You can amend it, revoke it, or move assets in and out. Because you retain this control, the IRS treats the trust as a “grantor trust” under 26 U.S.C. §§ 671–679. This means all income, dividends, and gains generated by trust property must be reported on your personal Form 1040 each year. You continue to use your Social Security number for tax reporting purposes, and no separate tax return for the trust is required.

Massachusetts follows the same approach. Under Massachusetts General Laws, Chapter 62, income tax is imposed on individuals, estates, and trusts. A revocable trust is disregarded for state tax purposes while you are living, meaning that income is included on your individual Massachusetts Form 1 return.

Estate And Inheritance Tax Considerations

Revocable living trusts also do not shield assets from Massachusetts estate tax. Under M.G.L. c. 65C, the Massachusetts estate tax applies to estates valued over $2 million as of 2023. Because assets in a revocable trust remain under your control, they are included in your taxable estate at death. This is one of the most significant limitations of a revocable trust.

Unlike irrevocable trusts, which can remove assets from your taxable estate if properly structured, revocable trusts provide no such benefit. If your estate is likely to exceed the Massachusetts threshold, we may recommend additional planning tools—such as irrevocable life insurance trusts or gifting strategies—to reduce estate tax exposure.

Taxation Of A Revocable Trust After Death

When you pass away, your revocable trust becomes irrevocable. At that point, the trust must obtain its own taxpayer identification number and begin filing its own income tax returns using IRS Form 1041. The Massachusetts Department of Revenue requires fiduciary income tax returns under M.G.L. c. 62, § 10 if the trust has Massachusetts-source income or a Massachusetts resident trustee.

The trustee must also ensure compliance with Massachusetts estate tax laws if the total estate value exceeds the threshold. This includes filing a Massachusetts estate tax return (Form M-706) and paying any applicable tax. Beneficiaries of the trust may also face personal income tax on distributions they receive, depending on the character of the income distributed.

Why Understanding Trust Taxation Matters

Many people mistakenly believe that creating a revocable living trust will reduce taxes. While these trusts offer significant advantages—such as avoiding probate under M.G.L. c. 190B and ensuring privacy—they do not provide tax savings during your lifetime or eliminate estate tax liability. Proper estate planning requires a full review of your assets, tax exposure, and long-term goals.

By understanding how Massachusetts law and federal tax law apply, we can help ensure that your trust accomplishes its intended goals while also addressing potential tax burdens.

Massachusetts Revocable Trust Frequently Asked Questions

Does A Revocable Trust Help Me Avoid Massachusetts Estate Tax?
No. Assets in a revocable trust are still counted as part of your taxable estate under M.G.L. c. 65C. Only irrevocable trusts or other strategies can remove assets from your taxable estate.

Do I Need A Separate Tax ID Number For My Revocable Trust While I Am Alive?
No. As long as the trust is revocable and you are the trustee, you continue to use your Social Security number. Income is reported directly on your individual tax return.

What Happens To My Revocable Trust When I Die?
At your death, the trust becomes irrevocable and must obtain its own tax identification number. The trustee will file fiduciary income tax returns for the trust and manage distributions according to your instructions.

Will My Beneficiaries Owe Taxes On Distributions From My Trust?
It depends on the nature of the income. If the trust earns income and distributes it, that income is taxable to the beneficiaries. If the distribution is from principal, no income tax applies.

Does A Revocable Trust Avoid Probate In Massachusetts?
Yes, to the extent that assets are properly transferred into the trust before death. Avoiding probate is one of the main advantages of revocable trusts under Massachusetts law.

Can I Reduce Capital Gains Taxes With A Revocable Trust?
No. A revocable trust does not change the tax treatment of capital gains. Gains are reported on your personal return while you are alive. After death, beneficiaries generally receive a step-up in basis, potentially reducing capital gains tax.

Do I Still Need A Will If I Have A Revocable Trust?
Yes. A “pour-over will” is necessary to transfer any assets not titled in the trust into the trust upon death. Without it, those assets may pass under intestacy laws.

How Are Massachusetts Trust Income Taxes Different From Federal Taxes?
While Massachusetts generally follows federal rules for grantor trusts, trust income tax rates and thresholds may differ. Massachusetts taxes income of resident trusts under M.G.L. c. 62, § 10.

What Is The Biggest Tax Mistake People Make With Revocable Trusts?
The most common mistake is assuming a revocable trust saves on estate taxes. It does not. Proper planning requires evaluating additional tools if your estate exceeds the Massachusetts threshold.

How Can I Minimize Taxes If I Already Have A Revocable Trust?
We may recommend combining your revocable trust with irrevocable trusts, charitable planning, or lifetime gifting to reduce estate tax exposure while still enjoying the benefits of probate avoidance.

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

At The Sullivan Firm P.C., we help families in Gloucester, Rockport, Manchester by the Sea, Beverly, and across the North Shore build estate plans that work in real life and under Massachusetts law. Understanding how a revocable living trust is taxed is essential to avoiding surprises and ensuring your plan truly protects your legacy.

Call The Sullivan Firm P.C. Today At 978-325-2721 For A Free Consultation. Our Gloucester office proudly serves Essex County residents who want to protect their families and preserve their wealth for future generations.

Do I Still Need A Will If I Have A Revocable Living Trust In Massachusetts?

August 20, 2025/in Trust Formation

Many residents across Gloucester, Rockport, Manchester by the Sea, Beverly, and the entire North Shore ask us a common question: “If I have a revocable living trust, do I still need a will?” The short answer is yes. Even though a trust provides significant advantages—such as probate avoidance, privacy, and smoother asset management—a will remains an essential component of a complete estate plan under Massachusetts law. Without a will, your estate plan may leave gaps that can cause unnecessary stress, expense, and unintended consequences for your family.

We often meet families who believe their trust alone is sufficient. But trusts only control assets that are properly titled in the name of the trust. Many times, people forget to transfer all of their property, or they acquire new assets later in life that never make it into the trust. If those assets are left outside the trust and you do not have a will, Massachusetts intestacy laws determine who inherits them. That may not reflect your wishes.

Why A Will Complements Your Trust

A will is more than a backup—it’s a safety net. The most common form is called a “pour-over will.” Under this arrangement, any assets not already titled in your revocable trust at the time of your death are directed into the trust through probate. This ensures those assets are ultimately governed by the terms of your trust.

Massachusetts General Laws Chapter 190B, § 2-602 sets forth the requirements for a valid will. It must be in writing, signed by the testator, and witnessed by at least two competent individuals. Without a valid will, the Massachusetts Uniform Probate Code applies intestacy rules under M.G.L. c.190B, § 2-101, which may distribute your estate to heirs you never intended.

Naming Guardians For Minor Children

One critical role of a will that no trust can fulfill is the nomination of guardians for minor children. If you are a parent of children under 18, a will allows you to legally designate who should raise them if you pass away. Without a valid will, the Massachusetts Probate and Family Court decides who will serve as guardian, and the judge’s decision may not align with your preferences. This highlights why even families with trusts cannot rely solely on those documents.

Probate And Trust Coordination

Many people establish revocable living trusts to avoid probate. While this is a valid and powerful tool, probate may still become necessary for assets not transferred into the trust. A will simplifies this process by clearly directing how leftover property should be handled. Even if the goal is to minimize probate, the presence of a will ensures that if probate does occur, it happens in an orderly manner with your instructions controlling the outcome.

Massachusetts Law Requires Both For A Strong Plan

Estate planning is not about choosing between a trust or a will. In most cases, the two documents work together. A trust manages assets efficiently during life and after death. A will provides legal authority for guardianship, directs any remaining assets into the trust, and ensures compliance with Massachusetts probate requirements. When combined, these tools create a comprehensive plan that protects your family and your legacy.

For residents across Essex County, the most secure approach is to have both a revocable living trust and a will drafted according to Massachusetts law. That combination reduces disputes, provides clarity, and gives your family peace of mind.

Massachusetts Trust Frequently Asked Questions

What Happens If I Forget To Put An Asset In My Trust?
If an asset is not titled in the trust, it may have to go through probate. A pour-over will ensures the asset is transferred into the trust during probate, keeping your estate plan intact.

Can My Trust Replace My Will Entirely?
No. A trust cannot name guardians for minor children, and it cannot handle every asset unless all are transferred into it. A will remains necessary to address these gaps.

Does A Will Still Go Through Probate If I Have A Trust?
Yes, if assets are outside the trust, your will must be probated. However, a properly funded trust reduces the size of the probate estate, often simplifying the process.

What Is The Legal Requirement For A Valid Will In Massachusetts?
Under M.G.L. c.190B, § 2-502, a will must be in writing, signed by the testator, and witnessed by two individuals. Without these requirements, the will is not enforceable.

Why Is A Pour-Over Will Recommended With A Trust?
A pour-over will acts as a safeguard. It transfers any missed assets into your trust, ensuring all property is distributed according to the trust terms.

If I Only Have A Trust, Who Inherits Property Outside Of It?
Without a will, property outside the trust is distributed under Massachusetts intestacy laws. This means heirs set by statute, not you, control inheritance.

Can I Update My Will Without Changing My Trust?
Yes. Wills and trusts are separate documents. You may update one without the other, but they should be reviewed together to ensure consistency.

Does Having Both A Will And A Trust Increase Taxes?
No. The combination does not create additional taxes. Instead, both documents ensure tax planning strategies are properly carried out under Massachusetts law.

Can A Will Override A Trust In Massachusetts?
Generally, no. If property is legally titled in a trust, the trust governs. But if there is a conflict about assets outside the trust, the will may apply.

How Often Should I Review My Will And Trust?
We recommend reviewing your documents every three to five years, or whenever you experience a major life event, such as marriage, divorce, birth of a child, or significant asset changes.

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

At The Sullivan Firm P.C., we help families in Gloucester, Rockport, Manchester by the Sea, Beverly, and throughout the North Shore protect what matters most. Even if you have a revocable living trust, a will remains a necessary safeguard under Massachusetts law. Together, these documents create a complete estate plan that avoids gaps and ensures your wishes are honored.

Call The Sullivan Firm P.C. today at 978-325-2721 for a free consultation. Our Gloucester office proudly serves all of Essex County. Let us help you create a plan that protects your family and your legacy.

Can I Change Or Cancel My Revocable Living Trust?

August 19, 2025/in Trust Formation, Trust Services

Many Massachusetts families choose a revocable living trust because it offers flexibility, privacy, and smoother administration of assets. One of the biggest advantages of this type of trust is that it can be changed or even canceled during your lifetime, as long as you have legal capacity. We are often asked by clients in Gloucester, Rockport, Manchester By The Sea, Beverly, and across the North Shore whether they can amend their revocable trust if life circumstances shift. The short answer is yes—Massachusetts law permits modification and revocation, but there are specific steps and legal considerations to follow. Understanding the process and the potential implications is critical to making sure your estate plan continues to reflect your wishes while remaining compliant with Massachusetts law.

Understanding Revocable Living Trusts Under Massachusetts Law

A revocable living trust is a legal arrangement created under Massachusetts General Laws Chapter 203E (Massachusetts Uniform Trust Code). According to M.G.L. c. 203E, §602, unless the trust expressly states it is irrevocable, the person who creates it (the settlor) may revoke or amend it at any time while alive and competent. This flexibility is why revocable trusts are a common choice in estate planning. They allow you to maintain control over your assets during your lifetime and adapt your plan as your life changes.

How To Amend A Revocable Living Trust

If you want to update your revocable trust, Massachusetts law permits amendments through a written document, often called a “trust amendment.” Under M.G.L. c. 203E, §602(a), the amendment must be signed by the settlor and delivered to the trustee. An amendment can change terms regarding beneficiaries, successor trustees, or asset distribution instructions. It is important to ensure amendments are drafted with precision, as poorly written changes can cause conflicts or confusion during administration.

How To Revoke Or Cancel A Revocable Living Trust

Sometimes clients decide that canceling their revocable living trust is the best option. M.G.L. c. 203E, §602(b) allows for revocation either by creating a written revocation delivered to the trustee or by transferring all trust property back to the settlor. Once revoked, the trust no longer controls the assets, and those assets may then pass through a new trust, a will, or directly under Massachusetts probate law. Because revocation can have serious estate and tax consequences, it should be done only after careful legal review.

Legal Issues And Ramifications Of Amending Or Revoking

While Massachusetts law makes it clear that a settlor can amend or revoke a trust, there are important considerations:

Capacity Requirements: You must be mentally competent to make legal changes. If there is any doubt, family members could challenge the amendment later.
Impact On Beneficiaries: Beneficiaries may be disappointed or surprised if they are removed or their share is reduced. Although beneficiaries generally cannot prevent a revocation, disputes may arise.
Estate Tax Considerations: If your estate is close to or exceeds the Massachusetts estate tax threshold (currently $2 million under M.G.L. c. 65C), changing or canceling your trust may impact tax planning strategies.
Coordination With Other Documents: Your revocable trust often works together with a pour-over will, powers of attorney, and health care proxies. A change to one may require changes to the others.
Creditor And Medicaid Concerns: Because revocable trusts do not protect assets from creditors or MassHealth recovery, some clients choose to cancel a revocable trust and create an irrevocable trust for long-term care planning.

Why Work With An Attorney

While Massachusetts law allows you to draft amendments or revocations yourself, doing so without legal guidance increases the risk of mistakes. An improperly amended or revoked trust could lead to expensive probate litigation, unintended tax consequences, or family disputes. As estate planning attorneys serving Gloucester and surrounding communities, we help ensure that changes are legally valid, consistent with your goals, and aligned with state law.

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Learn whether you can change or cancel a revocable living trust in Massachusetts. The Sullivan Firm P.C., estate planning attorneys in Gloucester, explains the laws, process, and potential consequences under Massachusetts General Laws.

Frequently Asked Questions About Changing Or Canceling A Revocable Trust In Massachusetts

Can I Amend My Massachusetts Revocable Trust At Any Time?

Yes, as long as you are alive and have legal capacity, you may amend your revocable trust under M.G.L. c. 203E, §602. Amendments must be in writing, signed by you, and delivered to the trustee. Oral changes are not valid. Because amendments affect how assets are distributed, we always recommend drafting amendments carefully with legal assistance to avoid disputes.

What Happens If I Revoke My Revocable Living Trust?

If you revoke your trust, the assets titled in the trust must be transferred back to your name or into another legal arrangement. Once revoked, the trust has no legal authority. Your property may then pass through your will or through probate unless you create a new trust. Revocation should only be done after understanding how it will impact taxes, probate exposure, and your overall estate plan.

Do My Beneficiaries Have To Approve Changes To My Trust?

No, beneficiaries of a revocable trust do not have legal rights to approve or deny changes while you are alive and competent. A revocable trust is designed to allow the settlor full control. However, after your death, beneficiaries may challenge changes if they believe you lacked capacity or were unduly influenced at the time of the amendment.

Can A Revocable Trust Be Changed After I Die?

No, once the settlor passes away, the revocable trust becomes irrevocable under Massachusetts law. At that point, the trustee is required to administer the trust according to its terms. This is why it is important to review and update your trust during your lifetime to ensure it reflects your wishes.

How Do I Cancel My Massachusetts Revocable Trust?

To cancel a revocable trust, you must either execute a written revocation delivered to the trustee or remove all property from the trust. Both actions effectively end the trust. Massachusetts law under M.G.L. c. 203E, §602(b) governs this process. Because revocation may cause unintended tax or probate issues, it should be done under the guidance of an attorney.

Does Amending A Trust Require A New Document?

Not always. Minor changes may be made with a trust amendment, while major revisions may require a restatement. A restatement replaces the entire trust document with updated terms while keeping the original trust name and date intact. This avoids the need to retitle assets, which can be more efficient in certain cases.

What If I Lose Capacity Before Changing My Trust?

If you lose capacity before making changes, the trust terms in place at that time remain binding. Your successor trustee will manage the trust according to those terms. This is why proactive updates are important, especially if you anticipate changes in family circumstances, health, or financial goals.

How Often Should I Review My Revocable Trust?

We recommend reviewing your trust every three to five years or sooner if you experience major life events such as marriage, divorce, birth of a child, significant asset changes, or relocation. Regular reviews ensure your trust remains current with Massachusetts law and your personal intentions.

Call The Sullivan Firm P.C For a Free Consultation

At The Sullivan Firm P.C., we assist families throughout Gloucester, Rockport, Manchester By The Sea, Beverly, and across the North Shore with creating, amending, and revoking revocable trusts. If you are considering changes to your estate plan, our attorneys can guide you through the legal requirements, ensure compliance with Massachusetts General Laws, and protect your family’s interests.

Call The Sullivan Firm P.C. today at 978-325-2721 to schedule your free consultation. Our office is conveniently located in Gloucester, Massachusetts, and we proudly serve clients throughout Essex County and the North Shore.

Can I Be The Trustee Of My Own Trust in Massachusetts?

August 13, 2025/in Trust Formation

As estate planning attorneys serving Gloucester, Rockport, Manchester by the Sea, Beverly, and throughout the North Shore, we often hear clients ask whether they can serve as the trustee of their own trust. The short answer is yes—in most cases, you can be your own trustee in Massachusetts, but it is important to understand exactly what that role means, what your legal duties are, and when serving as your own trustee makes sense.

A trust is a legal arrangement that separates legal ownership from beneficial enjoyment. The trustee is the person or institution responsible for managing the trust’s assets, following the terms of the trust document, and acting in the best interests of the beneficiaries. When you create a revocable living trust in Massachusetts, you can usually serve as both the grantor (the person creating and funding the trust) and the trustee. This allows you to maintain full control of your assets during your lifetime while still setting up a structure that can avoid probate and manage your affairs if you become incapacitated.

Serving As Your Own Trustee Under Massachusetts Law

Massachusetts law does not prohibit you from acting as trustee of your own revocable trust. In fact, it is common practice. Under Massachusetts General Laws Chapter 203E (the Massachusetts Uniform Trust Code), trustees—whether they are the grantor or not—owe fiduciary duties to the beneficiaries of the trust. These duties include loyalty, prudence, impartiality, and accountability (M.G.L. c.203E, §§ 801–813).

When you serve as your own trustee during your lifetime, you essentially retain the same control over your trust assets as if they were owned outright. You can buy, sell, invest, or use the assets as you wish, provided you are following the trust’s terms. Because you are also the beneficiary of your own revocable trust during your lifetime, your duties to yourself do not create a conflict.

However, upon your incapacity or death, your successor trustee—someone you name in the trust—will step in to manage and distribute the assets according to your instructions. This is where careful drafting becomes critical to avoid disputes or confusion.

Risks And Responsibilities Of Being Your Own Trustee

While being your own trustee offers convenience and control, it also means you are responsible for all aspects of trust management. This includes:

Keeping trust assets properly titled in the name of the trust
Maintaining accurate records and financial statements
Filing any required tax returns
Following the investment standards set forth under M.G.L. c.203C (the Massachusetts Prudent Investor Act)

If you fail to carry out these duties, even unintentionally, you could create legal and tax problems for yourself or your beneficiaries. This is particularly important if you own property in other states, have complex investments, or expect your trust to hold business interests.

For irrevocable trusts, the rules are very different. If you serve as trustee of your own irrevocable trust, you may lose many of the asset protection and tax benefits the trust was intended to provide. In many cases, we advise clients to appoint an independent trustee for irrevocable trusts to preserve those benefits.

Choosing A Successor Trustee

Even if you serve as your own trustee while you are alive and well, you must choose a capable successor trustee to take over if you can no longer manage the trust. This person will have the same fiduciary duties under Massachusetts law, and their actions can have lasting impacts on your beneficiaries. Selecting someone who is responsible, organized, and trustworthy is essential.

Why Professional Legal Guidance Matters

While Massachusetts law allows you to act as your own trustee for most revocable trusts, doing so without understanding your duties and the potential consequences can lead to mistakes. Our role is to ensure your trust is structured in a way that protects your interests now and safeguards your beneficiaries in the future. We can help you weigh the pros and cons of serving as your own trustee, ensure your trust document complies with M.G.L. c.203E, and coordinate your trust with the rest of your estate plan.

Massachusetts Trust Frequently Asked Questions

Can I Be The Trustee Of My Own Revocable Trust In Massachusetts?
Yes. Most people who create revocable living trusts name themselves as the initial trustee so they can maintain control of their assets during their lifetime. Massachusetts law allows this under the Massachusetts Uniform Trust Code.

Can I Be The Trustee Of My Own Irrevocable Trust?
You can, but it is usually not recommended. Acting as trustee of your own irrevocable trust can jeopardize the trust’s asset protection and tax advantages. In most cases, appointing an independent trustee is better.

What Duties Do I Have As My Own Trustee?
You must follow the fiduciary duties outlined in M.G.L. c.203E, which include acting in good faith, avoiding conflicts of interest, keeping accurate records, and prudently managing trust investments.

Do I Have To Keep Separate Accounts For My Trust?
Yes. Trust assets should be held in accounts titled in the name of the trust. Mixing trust assets with personal accounts can cause legal and tax complications.

Who Becomes Trustee If I Can’t Manage My Trust Anymore?
Your successor trustee—named in your trust—will step in if you become incapacitated or pass away. It is important to choose someone reliable and willing to serve.

Can My Spouse And I Be Co-Trustees Of Our Trust?
Yes. Married couples often serve as co-trustees of a joint trust, which allows either spouse to act on behalf of the trust.

Will Being My Own Trustee Affect Probate Avoidance?
No. A properly funded revocable trust will still avoid probate even if you serve as trustee, provided all assets are titled in the trust’s name.

Do I Need An Attorney To Set Up A Trust If I’m My Own Trustee?
While it is not legally required, working with an attorney ensures your trust complies with Massachusetts law, avoids common pitfalls, and is fully integrated into your estate plan.

Are There Tax Implications If I Am My Own Trustee?
For a revocable trust, there are generally no separate tax filings while you are alive. For irrevocable trusts, serving as your own trustee could change the tax treatment, so professional advice is critical.

What Happens If I Don’t Name A Successor Trustee?
If you become unable to serve and no successor is named, the Probate and Family Court will appoint one, which can cause delays and add costs.

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

At The Sullivan Firm P.C., we help residents of Gloucester, Rockport, Manchester by the Sea, Beverly, and all across the North Shore create trusts that work exactly as intended. If you’re considering serving as your own trustee, we will guide you through the legal requirements, responsibilities, and best practices to ensure your trust is effective and enforceable.

Call The Sullivan Firm P.C. Today At 978-325-2721 For A Free Consultation. Our office is conveniently located in Gloucester, Massachusetts, and we proudly serve clients throughout Essex County. Let us help you design a trust that gives you control now and protects your loved ones later.

What Kind Of Property Should Be Put Into My Trust in Massachusetts?

August 12, 2025/in Trust Formation

As estate planning attorneys serving Gloucester, Rockport, Manchester by the Sea, Beverly, and throughout the North Shore, we often hear clients ask whether they can serve as the trustee of their own trust. The short answer is yes—in most cases, you can be your own trustee in Massachusetts, but it is important to understand exactly what that role means, what your legal duties are, and when serving as your own trustee makes sense.

A trust is a legal arrangement that separates legal ownership from beneficial enjoyment. The trustee is the person or institution responsible for managing the trust’s assets, following the terms of the trust document, and acting in the best interests of the beneficiaries. When you create a revocable living trust in Massachusetts, you can usually serve as both the grantor (the person creating and funding the trust) and the trustee. This allows you to maintain full control of your assets during your lifetime while still setting up a structure that can avoid probate and manage your affairs if you become incapacitated.

Serving As Your Own Trustee Under Massachusetts Law

Massachusetts law does not prohibit you from acting as trustee of your own revocable trust. In fact, it is common practice. Under Massachusetts General Laws Chapter 203E (the Massachusetts Uniform Trust Code), trustees—whether they are the grantor or not—owe fiduciary duties to the beneficiaries of the trust. These duties include loyalty, prudence, impartiality, and accountability (M.G.L. c.203E, §§ 801–813).

When you serve as your own trustee during your lifetime, you essentially retain the same control over your trust assets as if they were owned outright. You can buy, sell, invest, or use the assets as you wish, provided you are following the trust’s terms. Because you are also the beneficiary of your own revocable trust during your lifetime, your duties to yourself do not create a conflict.

However, upon your incapacity or death, your successor trustee—someone you name in the trust—will step in to manage and distribute the assets according to your instructions. This is where careful drafting becomes critical to avoid disputes or confusion.

Risks And Responsibilities Of Being Your Own Trustee

While being your own trustee offers convenience and control, it also means you are responsible for all aspects of trust management. This includes:

Keeping trust assets properly titled in the name of the trust
Maintaining accurate records and financial statements
Filing any required tax returns
Following the investment standards set forth under M.G.L. c.203C (the Massachusetts Prudent Investor Act)

If you fail to carry out these duties, even unintentionally, you could create legal and tax problems for yourself or your beneficiaries. This is particularly important if you own property in other states, have complex investments, or expect your trust to hold business interests.

For irrevocable trusts, the rules are very different. If you serve as trustee of your own irrevocable trust, you may lose many of the asset protection and tax benefits the trust was intended to provide. In many cases, we advise clients to appoint an independent trustee for irrevocable trusts to preserve those benefits.

Choosing A Successor Trustee

Even if you serve as your own trustee while you are alive and well, you must choose a capable successor trustee to take over if you can no longer manage the trust. This person will have the same fiduciary duties under Massachusetts law, and their actions can have lasting impacts on your beneficiaries. Selecting someone who is responsible, organized, and trustworthy is essential.

Why Professional Legal Guidance Matters

While Massachusetts law allows you to act as your own trustee for most revocable trusts, doing so without understanding your duties and the potential consequences can lead to mistakes. Our role is to ensure your trust is structured in a way that protects your interests now and safeguards your beneficiaries in the future. We can help you weigh the pros and cons of serving as your own trustee, ensure your trust document complies with M.G.L. c.203E, and coordinate your trust with the rest of your estate plan.

Frequently Asked Questions