Is A Revocable Living Trust Recognized Under Massachusetts Law?
As estate planning attorneys serving Gloucester, Rockport, Manchester by the Sea, Beverly, and all across the North Shore, we often meet clients who want to know whether a revocable living trust is legally valid in Massachusetts. The short answer is yes—a revocable living trust is recognized under Massachusetts law and is one of the most flexible and powerful estate planning tools available. But simply creating one is not enough. It must be carefully drafted, properly funded, and coordinated with other legal documents to ensure it works as intended.
A revocable living trust is a written agreement in which you, as the grantor, transfer assets into a trust during your lifetime. You usually serve as your own trustee while you are alive and capable, maintaining full control over your assets. Because it is “revocable,” you may amend or terminate it at any time during your lifetime. Upon your death or incapacity, your chosen successor trustee manages or distributes the assets according to your instructions.
Massachusetts Legal Recognition Of Revocable Living Trusts
Under Massachusetts law, trusts—whether revocable or irrevocable—are recognized and enforced if they meet the legal requirements. The Massachusetts Uniform Trust Code (M.G.L. c.203E) governs the creation, validity, and administration of trusts. Section 401 of the Code specifies that a trust may be created by transferring property to a trustee during the settlor’s lifetime, declaring oneself as trustee, or by will.
This means a revocable living trust is entirely valid as long as:
- It has a clear written agreement.
- It names a trustee.
- It has an ascertainable beneficiary.
- It contains trust property.
While Massachusetts law allows you to act as your own trustee, the trust is not effective in avoiding probate unless assets are actually transferred into it during your lifetime. This process—called funding the trust—is critical.
Key Benefits Under Massachusetts Law
One of the main benefits of a revocable living trust under Massachusetts law is probate avoidance. When properly funded, assets in a revocable trust pass directly to your beneficiaries without going through the Probate and Family Court. This can save time, reduce costs, and keep your affairs private. Under M.G.L. c.190B (Massachusetts Uniform Probate Code), assets not held in a trust or passing by beneficiary designation typically require probate unless they qualify for certain small estate exemptions.
A revocable living trust also allows you to plan for incapacity. If you become unable to manage your affairs, your successor trustee can take over immediately without the need for a court-appointed guardian or conservator. This is consistent with M.G.L. c.203E, § 816, which grants trustees powers to manage trust property according to the trust terms.
Limitations And Ramifications
While revocable living trusts are powerful, they are not a cure-all. Because they are revocable, the assets in them remain part of your taxable estate and are subject to creditors during your lifetime. They also do not protect assets from long-term care costs in the same way certain irrevocable trusts may.
Another important point is that a revocable trust must be coordinated with a will—specifically a “pour-over” will—to ensure that any assets left outside the trust at your death are transferred into it. Without a pour-over will, those assets could be distributed under Massachusetts intestate succession laws (M.G.L. c.190B, § 2-101 and following), potentially going to unintended heirs.
Why Local Legal Guidance Matters
In Essex County, we see many cases where people used generic trust forms or online templates, only to have their trusts fail to avoid probate because they were never funded or were improperly drafted under Massachusetts law. Our role is to ensure your revocable living trust complies with the Massachusetts Uniform Trust Code, works with your other estate planning documents, and accomplishes your goals for your family.
Massachusetts Revocable Living Trust Frequently Asked Questions
Is A Revocable Living Trust Valid In Massachusetts?
Yes. Massachusetts law recognizes revocable living trusts under the Massachusetts Uniform Trust Code (M.G.L. c.203E). They must be in writing, identify a trustee and beneficiary, and contain property.
Does A Revocable Living Trust Avoid Probate In Massachusetts?
It can, but only if it is properly funded during your lifetime. Assets left outside the trust at death may still go through probate unless they have a beneficiary designation or are jointly owned.
Do I Still Need A Will If I Have A Revocable Living Trust?
Yes. A pour-over will ensures that any assets not titled in your trust at death are transferred into the trust and distributed according to its terms.
Can I Be My Own Trustee Of A Revocable Living Trust?
Yes. Most people serve as their own trustee during their lifetime, maintaining full control over trust assets until incapacity or death.
Can A Revocable Living Trust Protect Assets From Creditors Or Nursing Home Costs?
No. Because the trust is revocable, assets in it are still considered your property and remain available to creditors and for MassHealth eligibility calculations.
What Happens If I Don’t Fund My Revocable Living Trust?
If you fail to transfer assets into the trust, it will not avoid probate for those assets. They will be subject to probate under Massachusetts law.
How Is A Revocable Living Trust Taxed In Massachusetts?
During your lifetime, it is treated as your own property for income tax purposes. It does not have a separate tax ID unless you become incapacitated or after death.
Can I Change Or Cancel My Revocable Living Trust?
Yes. As long as you have capacity, you may amend or revoke your trust at any time.
Is A Revocable Living Trust Public Or Private In Massachusetts?
Unlike a will, which becomes public during probate, a trust generally remains private.
What Happens To My Revocable Living Trust When I Die?
It becomes irrevocable, and the successor trustee distributes assets according to the trust terms.
Call Troy Sullivan Firm Today For a Free Consultation
At The Sullivan Firm P.C., we prepare, review, and maintain revocable living trusts for individuals and families across Gloucester, Rockport, Manchester by the Sea, Beverly, and the entire North Shore. We ensure that your trust meets all Massachusetts legal requirements, works seamlessly with your other estate planning documents, and is properly funded to accomplish your goals.
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 Essex County.
