How to Create a Living Trust in Massachusetts

Creating a living trust in Massachusetts involves several important steps, from deciding between revocable and irrevocable options to properly funding your trust with assets. While the process may seem complex at first, understanding the basics can help you determine if this estate planning tool aligns with your financial goals and family circumstances. Whether you’re concerned about privacy, have substantial assets, or simply want to ensure a smooth transfer of property to your heirs, a living trust offers flexibility and control that many Massachusetts residents find valuable for their estate planning needs.

Whether you’re in the process of creating a trust or any other type of financial plan, you might also benefit from talking to a financial advisor.

Creating a Living Trust in Massachusetts

When you establish a living trust, you create a legal arrangement where a trustee holds and manages your assets for the benefit of your designated beneficiaries. Unlike a will, a properly funded living trust allows your assets to transfer directly to beneficiaries without court intervention, potentially saving time and money. There are six steps to creating a living trust in the Bay State, which are:

Decide between a single or joint trust: A single is a good match for those who are unmarried. On the other hand, a joint trust allows a married couple to place shared property and assets in a single trust.
Review your property: This is where you decide what you want to include in your living trust, such as real estate, investment accounts, jewelry and more. Retirement accounts typically have their own beneficiaries, so you cannot place them in a living trust.
Pick a trustee: The person you choose to be your trustee will retain control of your trust and its contents. You can name yourself trustee, or it could be a friend or family member. If you’re a trustee, though, make sure to name a successor after you pass away.
Get your trust documents together: At this point, it’s time to write out your living trust with the help of an online program or an estate planning lawyer.
Sign your living trust: This must be done in front of a notary public.
Fund your trust with your assets and property: Transferring your property to your living trust is a complex venture, so consider an estate planning lawyer if you haven’t already.

Some online resources can help you through each step, provided your situation isn’t too complex. It’s also never a bad idea to consult an estate planning attorney for matters like this.

What Is a Living Trust?

A living trust is a document that allows you to legally grant ownership of your assets to beneficiaries or express a desire to do so after you die. A living trust can become effective while you’re still alive, and it remains in effect after you’ve passed. Every trust has a trustee, who is an individual chosen to manage the assets and their dispersal as described in the trust. You can name anyone to be your trustee, including yourself.

Living trusts come in two primary forms: irrevocable and revocable. With an irrevocable living trust, you can’t remove assets or make changes without permission from every single person named in the trust. This is because the trust owns these assets now, not the grantor. Similarly, taxes on these assets are the responsibility of the trust.

More flexibility is afforded with a revocable living trust. With this option, you’re able to make any desired changes to the trust and its assets. Consequently, you maintain ownership of the assets and pays taxes on them as per usual.

How Much Does It Cost to Create a Living Trust in Massachusetts?

The cost of creating a living trust in Massachusetts can vary wildly depending on the process you use. If you go the online, “DIY” route, you might wind up paying less than $100. However, some web resources can charge up to $400.

If an attorney helps you set things up, the attorney’s fees will raise your total costs. There’s no one-size-fits-all cost, but they can frequently exceed $1,000. When looking for a lawyer, make sure you’re considering people who specialize in creating trusts and who are familiar with Massachusetts state law.

Why Get a Living Trust in Massachusetts?

The primary reason many people create living trusts is to avoid the headaches that come with the probate process. Probate is the legal process that handles verifying and following the terms of someone’s will after they die. Often, this process can be complicated, drawn-out and potentially expensive. However, most of it can be avoided by creating a living trust.

This contrast isn’t quite as stark in Massachusetts as in other states, as it has adopted the Uniform Probate Code, which significantly eases the probating of a will. Consequently, the benefits that a living trust provides may be reduced.

Who Should Get a Living Trust in Massachusetts?

Living trusts have a reputation among some as being instruments only for the extremely wealthy. But people without a high net worth can still reap the benefits of a living trust, the biggest one being that it allows you to avoid the probate process.

In Massachusetts, one exception would be for estates worth less than $25,000. These estates qualify for a simplified probate process, which means a living trust might not be worth the time and effort.

Creating a living trust, like any decision, isn’t without its downsides. For one, the process is more time-consuming and expensive than simply creating a will, especially if an attorney is helping you. Because the terms of a living trust can potentially extend for years after your death, that also means that the window for legal contests surrounding your assets extends as well.

Ultimately, it’s up to you to decide what makes the most sense for your family and financial situation. Of course, a financial advisor or an attorney can help you think through your options.

Living Trusts vs. Wills

Even if you get a living trust, you’ll still need a will. If some piece of property doesn’t end up in the living trust, the will can make it clear to whom that property should be passed to. Just as a trust has capabilities that a will does not, a will can do things that a trust cannot. These include:

Naming an executor
Providing instructions for paying taxes and debts
Selecting managers for children’s property
Establishing guardianship for children

The table below compares what living trusts and wills offer:

Living Trusts vs. Wills

Situation	Living Trusts	Wills
Names a property beneficiary	Yes	Yes
Allows revisions to be made	Depends on type	Yes
Avoids probate court	Yes	No
Requires a notary	Yes	No
Names guardians for children	No	Yes
Names an executor	No	Yes
Requires witnesses	No	Yes

Living Trusts and Taxes in Massachusetts

Although a living trust likely won’t affect your taxes much at the end of the day, you should be aware of estate and inheritance taxes in Massachusetts.

Massachusetts levies a graduated estate tax on all estates worth more than $1 million. Unlike some states, Massachusetts levies this tax on the entire estate, rather than just the amount above the $1 million threshold. The tax rates range from 0.8% to 16.0%.

Massachusetts does not have an inheritance tax or a gift tax. However, if you’re inheriting money from someone who lives in a different state, the inheritance laws of that state may apply instead.

The federal estate tax may also come into play here. For 2025, it’s levied on estates worth at least $13.99 million (single) and $27.98 million (couples). These values are doubled for the estates of married couples.

Bottom Line

While living trusts provide significant benefits like privacy protection and potential tax advantages, they should be considered as part of a comprehensive estate plan that may include other documents like wills and powers of attorney. Massachusetts residents should review their trusts periodically, especially after major life events or changes in state laws. With proper planning and professional guidance, you can establish a living trust that provides peace of mind and security for both you and your beneficiaries for years to come.

Tips for Planning Your Estate

Estate planning can get complicated, which is why many people choose to work with a financial professional. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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