Can I Be The Trustee Of My Own Living Trust?

One of the main advantages of creating a living trust instead of just writing a will is that, commonly, your family can avoid probate altogether. Suppose you’re considering drafting a living trust. In that case, the wise legal path is to consult with a local Massachusetts estate planning law firm so that they can analyze all aspects of your unique financial situation and other matters vital to your family.

One question that usually arises is: can you be the trustee of your living trust?

In Massachusetts, it is legal to appoint yourself as the trustee of any trust you create, including a living trust. Your lawyer may suggest, for specific reasons, creating either a revocable or irrevocable trust. Usually, though, appointing yourself as the trustee of an irrevocable trust in which you are also the “Settlor,” in most cases, may defeat the purpose of forming the trust in the first place.

A settlor is a person (or entity) that establishes the trust, usually you. A settlor can be called many other names, such as donor, grantor, trustor, and trustmaker. No matter what they are called, the settlor’s role is to legally transfer control of an asset to a trustee, who manages it for one or more beneficiaries.

As the name states, a revocable living trust can be modified, revoked, or terminated by the “Settlor.” A Settlor can revoke the trust at any time, for whatever reason, and without providing cause.

Among other things, the Settlor of a revocable trust can modify the terms of the trust, replace the trustee, or add and delete beneficiaries from the trust. Assets can also be added or removed from a revocable living trust.

However, when a trust is irrevocable, it cannot be modified or terminated by the Settlor, meaning assets cannot be added or removed.

The vital point to focus on is that appointing yourself as the trustee of an irrevocable trust in which you are also the settlor almost always defeats the purpose of making the trust irrevocable. Creating a trust irrevocable protects your assets in the trust. If you are the appointed trustee, you continue to control those assets, so the protection typically afforded to assets held in an irrevocable living trust would be negated.

On the other hand, if you are appointed the trustee of a revocable living trust, it may be advantageous. For example, suppose planning for your possible incapacity is your goal. In that case, you should appoint yourself as the trustee and appoint someone you wish to control your assets during your incapacity as the successor trustee.

The main point to discuss with your local Avoiding probate court proceedings.

• Provide long-term, goal-oriented management of property being held for the beneficiaries.
• Providing for tax situations, exemptions, and planning.
• Protect your assets from creditors, particularly in instances of Medicaid or MassHealth applications, and much more.

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You must note that your finances, goals, and plans are unique, and the type of trust needed must be tailored to fit them.

The first thing to do is to obtain the professional help needed so that the type and design of your living trust correctly fit your financial picture and specific goals.

 

Then, you and your estate planning lawyer will get through a few mandatory steps to proceed, such as:
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Drafting and putting a living trust in place may seem simple, but any legal document that affects your and your family’s life must be done with diligence and the utmost care.

Obtaining the professional, empathetic, and knowledgeable guidance of

Consult your estate planning lawyer first and get the professional advice you need to make the most of this valuable legal tool known as the living trust.