When it comes to estate planning, trusts are one of the most misunderstood - and most powerful - tools you can use. Let’s clear up the confusion.
1. Can I put my home in a trust even if I still have a mortgage?
A// Yes, you can. A lot of people think a mortgage prevents them from putting their house in a trust—it doesn’t. Whether your house is paid off or not, you can absolutely move it into a trust. In fact, doing so can protect your home from probate and, in some cases, from long-term care costs. We do this kind of planning every day.
2. I already have a will—do I still need a trust?
A// Yes, you do. Here’s the thing: a will doesn’t avoid probate. All it does is tell the probate court what to do with your stuff—and probate can be long, expensive, and public. A trust lets you skip all of that. If you want privacy, speed, and control over how your assets are distributed, a trust is the way to go.
3. Will an irrevocable trust help me?
A// Yes, depending on your goals. If you’re trying to protect your home from long-term care costs, or you want to reduce estate taxes, an irrevocable trust can be a game-changer. It locks in protection and gets assets out of your taxable estate. But these trusts are complicated—this is not a do-it-yourself situation. You need an experienced attorney to set it up right. When done correctly, there’s no need to be afraid of the word “irrevocable”, because we still leave you in the driver’s seat.
4. What’s the difference between a revocable and irrevocable trust?
A// A revocable trust is changeable—you can amend it at any time. It avoids probate, but it doesn’t protect your assets from nursing homes or taxes.
An irrevocable trust is less flexible, but much more protective. It can safeguard your home and savings from MassHealth (Medicaid) and reduce or even eliminate estate taxes for high-net-worth families. But we can still leave you in control.
We help clients decide which one fits best based on their goals and assets.
5. If I put my home in a trust, can I still live in it?
A// Yes. 100%. We get this one a lot. Putting your home in a trust doesn’t mean you lose it. You still live there, take care of it, and even sell it if you want to (depending on the type of trust). The trust is just a legal tool to help protect the home—it doesn’t kick you out of it!
6. Can a trust protect me from nursing home costs?
A// Yes—but timing is everything. If your goal is to shield your home or other assets from long-term care expenses, a Medicaid Trust (a type of irrevocable trust) can do exactly that. But here’s the catch: it needs to be in place at least five years before you need care. The sooner you set it up, the better.
7. Can I avoid estate taxes with a trust?
A// Yes—if it’s the right kind of trust. For high-net-worth families (think $4 million or more), estate taxes can take a serious bite out of your legacy. Trusts—especially irrevocable ones—can dramatically reduce or eliminate your estate tax liability if done properly. We’ve saved clients millions in taxes with the right trust strategy.
8. Can I name my kids as trustees?
A// You can—but that doesn’t mean you should. Sure, you can name your kids as trustees, but it’s not always the smartest move. Family dynamics, financial experience, and fairness all come into play. Sometimes, a neutral third-party trustee or even our firm’s Keystone Trustee Services is the better choice. We’ll talk through your options and help you decide.
9. Are trusts just for rich people?
A// Absolutely not. Trusts aren’t just for millionaires. They’re for anyone who wants to avoid probate, protect their assets, and make life easier for their family. Whether you have $500,000 or $5 million, the right trust can save your family time, money, and stress.
10. If I set up a trust, do I still need a will?
A// Yes—but it’s a different kind of will. Even with a trust in place, you still need what’s called a “pour-over will.” It acts as a safety net—if any assets were left out of your trust, such as assets you could inherit even after you’re gone, the will directs them to be added in. It doesn’t replace the trust; it works with it. Think of it as your backup plan to make sure nothing slips through the cracks.
💡 Still have questions? Join us at one of our free upcoming seminars to get the answers you need, straight from the experts. You’ll learn how to protect your family, your home, and your future—with a plan that actually works.
