Irrevocable Trust Attorney in Boston
Estate planning often involves more than just creating a will. If you want to preserve assets and pass down wealth to future generations, an irrevocable trust may be the answer. These trusts don’t offer the flexibility you get with revocable trusts, but they more than make up for it with tax benefits, asset protection, and other advantages.
If you need an irrevocable trust attorney in Boston, Jillise McDonough Estate Planning Law Firm can help. Get in touch today to schedule a consultation.
Understanding Irrevocable Trusts in Boston
A trust is a legal entity created to hold assets. There are many types of trusts, but they all fall into one of two categories:
- Revocable Trusts: Can be changed or dissolved by the grantor
- Irrevocable Trusts: Cannot be changed or dissolved by the grantor
A “grantor” is a person who creates and funds a trust. Once the trust is funded, a trustee is chosen to manage the assets within it. The trustee also oversees the transfer of assets to beneficiaries.
There are multiple types of irrevocable trusts, but they have the following elements in common:
- They can’t be changed or revoked
- Once the grantor transfers assets into the trust, they no longer own those assets
- The grantor relinquishes control of the assets in the trust
If you’re considering incorporating trusts into your estate plan, working with an irrevocable trust attorney is essential. An experienced attorney can help you avoid costly mistakes.
Benefits of Irrevocable Trusts: Asset Protection and Tax Advantages
A Boston irrevocable trust lawyer can help you decide whether this is the right kind of trust for your situation. These are some of the advantages you may want to consider:
Reduced Estate Taxes
Irrevocable trusts reduce your taxable estate, helping you minimize estate taxes. This is especially important in Massachusetts because the state taxes estates that are worth more than $2 million.
If the total value of your estate — and any lifetime gifts exceeding the annual exclusion amount ($19,000 per recipient in 2026) — exceeds $2 million, it could incur state-level estate taxes of 0.8% to 16%.
The federal lifetime gift and estate tax exemption is much higher, but federal estate taxes are also more significant. As of 2026, the lifetime gift and estate tax exemption is $15 million ($30 million for married couples). Estates that exceed that amount could be taxed at rates up to 40%.
Avoiding Probate
After your death, assets that are not placed into a trust typically must go through the process of probate. This is a formal legal process involving several steps, which may include:
- Validating a deceased person’s will
- Appointing an executor or administrator to handle the estate
- Creating an inventory and valuation list of the deceased person’s assets
- Using estate funds to pay debts and taxes
- Distributing remaining estate funds to beneficiaries
Irrevocable trusts allow you to pass assets directly to beneficiaries and avoid the costly, time-consuming, and public probate process.
Beneficiary Protection
When you create an irrevocable trust, you can decide the terms of inheritance. For instance, you might allow beneficiaries to receive assets only after they reach a certain age.
Some people use something called a Health, Education, Maintenance, and Support (HEMS) Standard when passing on wealth. Under this standard, your trustee is only allowed to make distributions for those particular use cases.
Other people include incentive provisions that entitle beneficiaries to a portion of their inheritance once they’ve reached a particular milestone. For instance, you might stipulate that your beneficiary must graduate from college or begin full-time employment to receive funds from the trust.
Protection From Creditors
In many cases, transferring assets to an irrevocable trust can shield them from creditors. When you transfer your assets to an irrevocable trust, you are formally relinquishing all ownership rights. If someone wins a lawsuit against you or you otherwise owe money, your creditors can try to collect money from you directly. However, they may not try to collect money from the trust.
Special Needs Planning
Special needs trusts are a great example of how a properly executed trust can protect the interests of your beneficiaries. If you were to simply leave a disabled loved one a lump sum of money in your will, the inheritance could disqualify them from continuing to receive government benefits. They may not be able to access health insurance, affordable housing, or other critical resources.
However, when you structure your gift as part of a special needs trust, your beneficiary would not gain direct access to the assets in the trust. Instead, the assets would be managed by a trustee and used to pay for disability-related expenses, allowing your loved one to maintain their eligibility for benefits.
Irrevocable Life Insurance Trusts (ILITs) and Life Insurance Planning
If you have a Boston irrevocable life insurance policy, keep in mind that if the proceeds are part of your estate, they may result in estate tax being owed. In Massachusetts, estates valued at over $2 million are taxed.
Fortunately, there’s a way to get the proceeds of your policy to beneficiaries without creating estate tax liability: an irrevocable life insurance trust. With this kind of irrevocable trust, life insurance policy proceeds technically go to the trust, rather than directly to your designated beneficiaries. This keeps the life insurance proceeds from being calculated within your estate, making it easier to quickly pass money to heirs.
You should always contact a Boston irrevocable life insurance trust lawyer before going this route. If you make a mistake while setting up the trust, you could lose out on potential tax benefits. Boston ILIT lawyers can help you use these and other tools to protect assets and reduce potential estate taxes.
Types of Irrevocable Trusts for Estate Planning
Irrevocable life insurance trusts are some of the most common irrevocable trusts used for estate planning, but they’re just one option of many. In addition to an ILIT, you might consider one or more of these trust types while estate planning:
Spousal Lifetime Access Trust (SLAT)
With an SLAT, one spouse acts as the grantor, allowing the other spouse to access assets within the trust. When the trust is created, the assets within it are removed from both spouses’ estates. However, because the surviving spouse still has access to assets in the SLAT, they will be financially supported in a reliable manner.
Charitable Remainder Trust (CRT)
This type of trust allows you (or a beneficiary) to receive an income stream while also supporting a charity of your choice. Here’s a quick look at how it works:
- You fund the trust and receive an immediate, partial tax deduction
- The assets in the trust generate an income stream paid to you (or a beneficiary) over a set period
- After that period has passed, the remaining assets in the trust go to a qualified charity of your choice
Alternatively, you might decide to create a charitable lead trust (CLT). This is effectively the inverse of a CRT. Once you create the trust, it generates an income stream that goes to a chosen charity for a period of time. After that time, the remaining assets in the trust go to your beneficiary.
Qualified Personal Residence Trust (QPRT)
A qualified personal residence trust (QPRT) is one way to reduce gift and/or estate taxes when transferring your home (or a vacation home) to your children or other beneficiaries. The trust also allows you to continue to live in the home for a set period of time.
Here’s a step-by-step look at how it works:
- You create the trust and transfer the home into it
- You stay in the home for a set period (usually 10-15 years)
- During that time, you cover taxes and maintenance
- Because you stay in the home for a time, its value for tax purposes is much lower
- Once your term of residence expires or you die, the property is given to your beneficiaries
Notably, a QPRT also “freezes” the value of the home for estate tax purposes after you transfer it to the trust. This means that any appreciation gained after that time won’t be taxed.
Medicaid Asset Protection Trust (MAPT)
If you think you may need to access long-term care services through Medicaid, a Medicaid asset protection trust can remove assets from your estate to preserve them for beneficiaries. Otherwise, Medicaid may try to take assets from your estate to recoup the costs of your care.
When you apply for Medicaid, the government reviews your assets for the past five years. If you want to create an MAPT, you’ll need to do so at least five years before you apply.
Once your assets have been transferred to the MAPT, they no longer belong to you, so Medicaid no longer considers them to be available to help pay for your care. However, if you have transferred your home to an MAPT, you usually may continue to live in it.
You can’t access assets in the trust, but you may be able to receive interest and dividends generated by those assets.
Grantor-Retained Annuity Trust (GRAT)
This type of trust makes it possible to transfer appreciating assets to your children (or other beneficiaries) while minimizing taxes they may have to pay.
Once you transfer assets to a GRAT, you receive a trust-generated annuity for a set period of time. If the assets in the trust appreciate faster than the rate outlined by IRS Section 7520, your beneficiaries won’t have to pay taxes on the excess growth.
How an Irrevocable Trust Attorney in Boston Helps
Boston irrevocable trust law can be a complex subject. If you want to avoid paying unnecessary taxes or making other mistakes, working with an irrevocable trust attorney is essential. Our team is deeply familiar with Massachusetts estate law, and we’re committed to creating a fully customized estate plan for each of our clients.
Consult Jillise McDonough Law Firm
If you’re searching for an irrevocable trust attorney in Boston, MA, work with a law firm that’s fully focused on trusts, wills, and estate planning. At Jillise McDonough Estate Planning Law Firm, we maintain a focus on estate planning so we can offer our clients the most effective legal guidance possible.
When you’re looking for a Medicaid planning irrevocable trust lawyer in Boston, our experienced team is here for you. Get in touch today to see how we may be able to help.
Frequently Asked Questions
How Does an Irrevocable Trust Differ From a Revocable Trust?
An irrevocable trust is generally permanent. You can’t change or dissolve it after its creation (except in very limited circumstances). Revocable trusts can be changed or dissolved at any point after you create them.
Can an Irrevocable Trust Reduce Estate Taxes in Massachusetts?
Yes, irrevocable trusts can reduce the size of your taxable estate, which can reduce or eliminate estate taxes.
What Types of Irrevocable Trusts Are Commonly Used in Boston?
Common types of irrevocable trusts include irrevocable life insurance trusts (ILITs), Medicaid asset protection trusts (MAPTs), dynasty trusts, and qualified personal residence trusts (QPRTs).
Can I Be the Trustee of My Own Irrevocable Trust?
Not usually. If you act as your own trustee with a revocable trust, you may lose asset protection and tax advantages. There are some cases where you may be able to act as a co-trustee with limited power, but you should consult your attorney before doing this.
How Do Irrevocable Trusts Affect Income Taxes?
As any Boston asset protection trust attorney can tell you, irrevocable trusts offer considerable estate tax advantages. If a trust generates income without distributing it, the trust itself (rather than the grantor) must pay income tax.
Can I Change Beneficiaries in an Irrevocable Trust?
In some cases, you can change beneficiaries, but it’s a difficult process. You’ll usually need the consent of all beneficiaries as well as court approval.
How Does an Irrevocable Trust Help With Wealth Transfer Planning?
Irrevocable trusts can reduce or eliminate estate taxes, so more of your wealth goes to your beneficiaries. It also prevents assets from going through probate, making asset transfer faster and simpler.
Can an Irrevocable Trust Be Revoked Under Any Circumstances?
In rare circumstances, you can revoke an irrevocable trust. For instance, if the trust was created as a result of fraud or undue influence, a court may revoke it. You may also be able to revoke your trust if all beneficiaries consent to it.
How Often Should an Irrevocable Trust Be Reviewed?
In general, you should review trusts (and the rest of your estate plan) every three to five years. You should also review your trust after major life changes, like divorce or the birth of a child.
Can Multiple Trustees Be Appointed for an Irrevocable Trust?
Generally, you are allowed to appoint multiple trustees. However, you should keep in mind that co-trustees may disagree on how to best manage the trust. For that reason, your trust document should outline each trustee’s responsibilities.
If you aren’t sure whether you want a single trustee or more than one, an irrevocable trust attorney can review your situation and offer advice.
