New Trust Laws in Massachusetts

By LUCY J. BUDMAN, ESQ.

Q.  I have heard that major changes in Massachusetts Trust Law were underway. Is that true? 

A.   Yes, you heard it right. After many decades under the old laws, Massachusetts passed a completely overhauled probate law that went into effect at the beginning of April. Now, in July, the new Massachusetts Uniform Trust Code is here and tackles Trusts also!

On Sunday, July 8th, the Governor signed a new law passing the Massachusetts Uniform Trust Code (MUTC). This law is effective immediately. The new law applies to all Massachusetts Trusts with only limited exceptions, whenever they were created. At Curley Law Firm, we have been following the implementation of the new law to help guide our clients who have Trusts or are thinking about Trusts as to how the new law impacts them.

The new law significantly overhauls how Trusts (revocable, irrevocable and testamentary) work in Massachusetts. If you are the Trustee of a Trust, the new law also creates serious new fiduciary duties. If you are acting as a Trustee you can be held personally liable for getting it wrong. Working with an expert Attorney helps the creator of a Trust protect themselves and their families and helps protect Trustees from accidentally breaching their fiduciary duties.

The law is complex and the full impact of some of the provisions is still not completely clear, but below are a two key changes that may apply to you if you have a trust or are acting as a Trustee:

  1. Trustees now have a duty to keep all Trust beneficiaries informed. That includes providing all beneficiaries with the name and address of the Trustee within 30 days of being appointed and providing annual accountings to current beneficiary who have not specifically waived the right. If you are the Trustee of a Trust, it is critical to make sure you are in compliance with your duties. We work closely with our Trustee clients to make sure they have all the tools they need to fulfill their responsibilities; and
  2. Trust modification has become easier. In many cases, if all the interested parties in an Irrevocable Trust agree, the Trust can be changed without special Probate Court intervention. For families who wish to change existing Irrevocable Trusts, the MUTC is intended to make the process more straightforward.

The new law carries a number of fixes for issues raised under the Massachusetts Uniform Probate Code (MUPC) which went into effect in April.  Two important issues that will apply to many of our clients include:

  1. Clarifying that so called ‘informal’ personal representatives will be able to sell real estate without a license if they are acting under a will with a power of sale. Previously, title insurance companies refused to give clean title without a formally appointed personal representative or a license to sell) ; and
  2. A new fee schedule. Fees for many types of probate court transactions are increasing. For many of our clients, the fees and time delays of the probate court are a reason to plan to avoid probate.

A well drafted Trust can protect you and your family from everything from probate to taxes, creditors and long term care costs, depending on your planning goals, but without planning with an expert, you may find that your Trust has unintended consequences under the new law.

Be sure that your attorney understands the ins and outs of the new Uniform Trust Code and can advise you about how to plan with a Trust for you and your family or how to carry out your duties as a Trustee.

(Lucy J. Budman is a Certified Elder Law Attorney and holds a Masters of Law in Taxation.  She practices law at Curley Law Firm LLP at 1 Common Street in Wakefield.  Do you have an Elder Law or Estate Planning question?  E-mail questions to Info@CurleyLawFirm.com to be considered for future columns)

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Contact Us!

Do you have an Elder Law or Estate Planning question? E-mail questions to Info@CurleyLawFirm.com or call 781.245.2222 x10 to be considered for future columns).

About Curley Law Firm LLP

Serving clients throughout Massachusetts, Curley Law Firm LLP draws upon more than four decades of combined Estate Planning and Elder Law experience to ensure that you can achieve your planning goals.

Attorneys Patrick Curley and Lucy Budman are two of fewer than two dozen Certified Elder Law Attorneys (CELA) in Massachusetts. Attorney Mark Curley has practiced in the areas of Estate Planning and Elder Law for over three decades.

The value of working with a firm with CELAs on the team is the peace of mind you receive - knowing that you will get the very best advice available to protect yourself, your family and your assets. A CELA is a recognized expert in legal matters dealing with Estate Planning and Elder Law including Trusts, Wills, Asset Protection against Medicaid and nursing home costs, Medicaid (MassHealth) benefits planning and applications, Probate and Trust administration, Guardianship and Conservatorship, and VA benefits planning.

At a time when many lawyers claim to practice "elder law", having a CELA-led team working on your planning means having one of the very few experts in the Commonwealth on YOUR team.

For experienced representation and quality service from attorneys who will help you achieve your planning goals, please schedule a confidential Initial Consultation by calling us at (866) 406-8582 or visit our website at www.CurleyLawfirm.com

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