Location of Trusts a Critical Factor in Trust and Estate Planning, Says Hemenway & Barnes LLP
BOSTON--(BUSINESS WIRE)--Hemenway & Barnes, one of Boston’s most storied legal and fiduciary firms, today issued a discussion paper examining how the location of a trust can support personal goals and mitigate tax exposure.
“The State of Your Trust: Where Should a Trust Be Sited?”
“The State of Your Trust: Where Should a Trust Be Sited?” explores nuances and variances among state laws that apply to establishing a trust. Hemenway & Barnes partner and author of the paper, Dennis Delaney, discusses trust planning pain points that may be considered, including:
- Tax law: state income tax on trusts vary from region to region. Some consider the location of the beneficiary and some the trustee, making for a confusing patchwork of statutes.
- Decanting: even if a trust is irrevocable, changes may be made through “decanting,” the process of distributing assets from an old trust into a new one with different provisions.
- Quiet trusts: a relatively new vehicle that lets grantors decide when they will tell beneficiaries about a trust.
“All of us know the mantra: in buying a home, it’s location, location, location. Yet when approaching estate planning, many high net worth families think and act locally,” writes Delaney. “Some states have modernized their trust laws and expanded the options available to a trust donor, so knowing the options and making an informed choice about where to site a trust is more important than ever.”
About Hemenway & Barnes
Based in Boston, Hemenway & Barnes LLP has served for over 150 years as trusted counsel to the region’s high net worth families, businesses, and nonprofit organizations. The firm is uniquely designed as a home for legal and financial expertise, with a focus on providing each client with services that are specifically tailored and results-oriented. Areas of expertise include estate planning, litigation, corporate work, and real estate. Its affiliate, Hemenway Trust Company LLC, is a New Hampshire based, private trust company offering a full range of wealth advisory and management services. For more information, visit http://www.hembar.com.