Massachusetts adopted the Uniform Trust Code in 2012. The state follows standard UTC rules for most trust administration matters, but Massachusetts has a significant estate tax that makes trust planning more important here than in many states. With a $2 million estate tax exemption (well below the federal exemption), many Massachusetts families who wouldn't otherwise need complex tax planning find that a properly structured trust is essential.
This guide applies to both revocable and irrevocable trusts in Massachusetts.
Where Massachusetts trust law lives
The Massachusetts Uniform Trust Code is in Massachusetts General Laws Chapter 203E, effective 2012. The state estate tax is governed by M.G.L. Chapter 65C.
Accounting and notice requirements
Massachusetts follows the standard UTC framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship and when the trust becomes irrevocable. Annual accounting to qualified beneficiaries is required under the UTC duty to inform.
Trustee duties
Massachusetts follows the standard UTC duties: good faith administration, loyalty, impartiality, and prudent investing. The prudent investor standard requires diversification, portfolio-level evaluation, and consideration of the trust's purposes and the beneficiaries' needs.
Trustee compensation
Massachusetts uses the "reasonable under the circumstances" standard. No statutory fee schedule. Professional trustees typically charge 0.5% to 1.5% of trust assets annually.
What makes Massachusetts different
State estate tax with a $2 million exemption. This is the biggest planning consideration for Massachusetts families. The state estate tax kicks in at $2 million (the exact threshold and structure may be updated, so verify the current figures with your attorney). The federal estate tax exemption is much higher (over $13 million per person as of recent years), so many families who owe nothing federally still face a Massachusetts estate tax bill. Proper trust planning, including irrevocable life insurance trusts and credit shelter trusts, can help reduce this exposure.
The estate tax applies to the entire estate, not just the amount over $2 million. Massachusetts uses a "cliff" structure rather than a graduated exemption. If your estate is $1.99 million, you owe nothing. At $2.01 million, the tax applies to the entire estate, not just the $10,000 over the threshold. This makes planning around the exemption especially important.
Clean UTC adoption. Massachusetts follows the UTC framework closely without many unusual modifications. General UTC guidance is reliable for Massachusetts trusts.
Proximity to New Hampshire creates planning opportunities. New Hampshire has no state income tax, no estate tax, unlimited dynasty trusts, DAPT legislation, and quiet trust provisions. Some Massachusetts families establish trusts under New Hampshire law or move trust situs to New Hampshire for these advantages, while continuing to live in Massachusetts.
TrustHelm tip: TrustHelm tracks your Massachusetts trust obligations and flags your annual accounting deadlines. The platform helps you keep thorough records of trust assets and their values, which is critical for estate tax planning around the $2 million threshold.
The most common Massachusetts trust mistakes
Ignoring the state estate tax. Many families assume that because they're well below the federal exemption, estate taxes aren't a concern. Massachusetts's $2 million threshold catches far more estates than the federal level.
Not understanding the cliff structure. The jump from $0 in tax at $1.99 million to a full tax bill at $2.01 million makes planning around the threshold critical. Even small adjustments to the estate's value can have outsized tax consequences.
Not funding the trust. A trust designed to shelter assets from estate tax only works if the assets are actually in the trust. Unfunded trusts provide no tax benefit.
Missing the 60-day notice deadline. Standard UTC requirement that applies when a new trustee takes over or the trust becomes irrevocable.
Not considering New Hampshire as an alternative jurisdiction. For families with significant wealth, New Hampshire's trust advantages are substantial. Not every family should move their trust, but it's worth evaluating.
When to talk to an attorney
You should consult a Massachusetts trust attorney if your estate is approaching the $2 million threshold and you need to plan around the state estate tax, you want to evaluate moving trust situs to New Hampshire, you're a successor trustee taking over after a death, or you need to understand how Massachusetts and federal estate taxes interact.
For finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney directory.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.