What are the Most Popular Types of Trusts for the Ultra-Rich in Massachusetts?

What are the Most Popular Types of Trusts for the Ultra-Rich in Massachusetts?


Sometimes, it might seem like the ultra-rich in Massachusetts are playing by completely different rules. They seem to have the financial knowledge and experience to dodge taxes and other issues that bog many of us down. One of the most popular tools for the so-called “1%” is a trust. But what kind of trust is most effective if you have a high net worth? And if you do not have a high net worth, can a trust still be helpful? So, what are the most popular types of trusts for the ultra-rich in Massachusetts?

These questions are probably best left answered by a qualified estate planning attorney. Our legal professionals are well aware of the various methods that the ultra-rich use to maintain their wealth, and we can also help you save some money as you approach the estate planning process. Trusts are not for everyone, but they may be more beneficial than you realize.

Dynasty Trusts
One of the most popular trusts for wealthy families is a dynasty trust. The name of this trust alone should tell you that it is intended for the super rich. Dynasty trusts are long-term, irrevocable trusts that continue throughout the generations. After being established by a grantor, it is subject to transfer taxes. But for all future transfers and distributions in the future, the dynasty trust is completely exempt from future transfer taxes. These trusts are also GST exempt.

GST Trusts
Despite its name, a GST trust has nothing to do with general sales taxes. Instead, the acronym “GST” stands for “Generation-Skipping Transfer Tax.” This type of trust is generally set up for the benefit of a grandchild, which means it “skips” a generation between the grandparents and the grandchildren. That grandchild can then pass on the assets in the trust to their own grandchildren, and this cycle can continue indefinitely.

So, what is the benefit of this system? A GST Trust means that none of the beneficiaries will ever be required to pay federal estate tax at each successive death. It is one of the most popular ways in which the ultra-wealthy keep their wealth within their families over many generations without having to continually pay large amounts of tax.

Trusts Are Not Just for Rich People
Although many of these trusts are specifically designed for families with enormous net worths, there are many other types of trusts available. Some of these trusts are extremely beneficial for “average” people with relatively modest fortunes. Do not make the mistake of believing that trusts are solely reserved for the 1%.

Enlist the Help of a Qualified Attorney Today
If you would like to explore your estate planning options, the best thing to do is to consult with a qualified, experienced estate planning attorney in Western Massachusetts. Contact the Law Offices of Johnson, Sclafani & Moriarty, and you can approach this process with a sense of clarity and efficiency. Trusts are not just for the ultra-rich, so you and your beneficiaries can benefit tremendously from this option. Book your FREE consultation today, and we can discuss matters further. Contact us 2 413-732-8356.