What kinds of trusts does Massachusetts law recognize?

Express trusts created by a transfer of property to a trustee during life or by will, by the owner's declaration, or by the exercise of a power of appointment (G.L. c. 203E, § 401); revocable and irrevocable trusts (§ 602); spendthrift trusts (§ 502); trusts with discretionary powers (§ 814); charitable trusts (§ 405); trusts for the care of an animal and for other non-charitable purposes (§§ 408, 409); testamentary trusts, whose trustee furnishes a bond with a surety unless the terms waive it or the court finds it not necessary (§ 702); and title-holding entities such as nominee trusts, which a trustee may establish to hold legal title without making the trust's terms public (§ 816(26)).

What is a discretionary trust under Massachusetts law?

The code defines no separate kind of discretionary trust; it governs the exercise of a discretionary power. Notwithstanding broad discretion in the terms — "absolute", "sole" or "uncontrolled" — a trustee exercises a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries (G.L. c. 203E, § 814(a)); unless the terms expressly provide otherwise, a beneficiary who is a trustee, other than the settlor, may make discretionary distributions to or for the trustee's own benefit only in accordance with an ascertainable standard, and no trustee uses such a power to satisfy a support obligation the trustee personally owes (§ 814(b), with the exceptions of § 814(d)). A distribution subject to the trustee's discretion is not a mandatory distribution a creditor may reach when it is overdue (§ 506); whether a creditor can reach a discretionary interest is a question for a licensed Massachusetts attorney of your choosing.

Does Massachusetts have a directed trust act?

Not as of October 2026: Massachusetts's law on a power to direct is G.L. c. 203E, § 808. While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms ((a)); where the terms give a person other than the settlor of a revocable trust a power to direct certain actions of the trustee, the trustee acts in accordance with an exercise of the power unless it is manifestly contrary to the terms or the trustee knows it would be a serious breach of a fiduciary duty the holder owes the beneficiaries ((b)); and the holder of a power to direct is presumptively a fiduciary, who acts in good faith with regard to the purposes of the trust and the interests of the beneficiaries and is liable for a loss that results from a breach of a fiduciary duty ((c)).

Types of Trusts in Massachusetts

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Common types of Trusts in Massachusetts

Revocable living Trust

Created during life and changeable anytime; commonly used to avoid probate and plan for incapacity. You keep control — so it is not asset protection.

Irrevocable Trust

Generally can't be changed or revoked once created; you give up control in exchange for benefits some irrevocable Trusts can offer, such as certain tax or planning goals. Fact-specific — for an attorney to design.

Testamentary Trust

Created by your will and funded only after death, through probate. Useful for leaving assets to minors or in stages.

Special needs (supplemental needs) Trust

Holds assets for a beneficiary with disabilities without disrupting needs-based public benefits like Medicaid or SSI, when properly drafted.

Spendthrift Trust

Includes a spendthrift provision that restrains a beneficiary's ability to transfer their interest and limits some creditors' reach (G.L. c. 203E, § 502), within limits.

Charitable Trust

Benefits a charitable purpose; certain forms can combine giving with income or tax planning. Design and compliance are an attorney/advisor matter.

Trust for a pet

A Massachusetts trust for the care of animals alive during the settlor's lifetime, which the Massachusetts Uniform Trust Code provides for (G.L. c. 203E, § 408); unless the instrument ends it earlier, it ends at the death of the last surviving animal it covers.

Which type of Trust fits your goals?

Trusts are tools — the right one (if any) depends entirely on your goals, your family, your assets, and tax considerations. This page is general information, not legal advice. A free role check can show you where you stand, and a Massachusetts attorney can design what fits your situation.

General information about Massachusetts law, not legal advice.

Frequently asked questions

What kinds of trusts does Massachusetts law recognize?: Express trusts created by a transfer of property to a trustee during life or by will, by the owner's declaration, or by the exercise of a power of appointment (G.L. c. 203E, § 401); revocable and irrevocable trusts (§ 602); spendthrift trusts (§ 502); trusts with discretionary powers (§ 814); charitable trusts (§ 405); trusts for the care of an animal and for other non-charitable purposes (§§ 408, 409); testamentary trusts, whose trustee furnishes a bond with a surety unless the terms waive it or the court finds it not necessary (§ 702); and title-holding entities such as nominee trusts, which a trustee may establish to hold legal title without making the trust's terms public (§ 816(26)).
What is a discretionary trust under Massachusetts law?: The code defines no separate kind of discretionary trust; it governs the exercise of a discretionary power. Notwithstanding broad discretion in the terms — "absolute", "sole" or "uncontrolled" — a trustee exercises a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries (G.L. c. 203E, § 814(a)); unless the terms expressly provide otherwise, a beneficiary who is a trustee, other than the settlor, may make discretionary distributions to or for the trustee's own benefit only in accordance with an ascertainable standard, and no trustee uses such a power to satisfy a support obligation the trustee personally owes (§ 814(b), with the exceptions of § 814(d)). A distribution subject to the trustee's discretion is not a mandatory distribution a creditor may reach when it is overdue (§ 506); whether a creditor can reach a discretionary interest is a question for a licensed Massachusetts attorney of your choosing.
Does Massachusetts have a directed trust act?: Not as of October 2026: Massachusetts's law on a power to direct is G.L. c. 203E, § 808. While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms ((a)); where the terms give a person other than the settlor of a revocable trust a power to direct certain actions of the trustee, the trustee acts in accordance with an exercise of the power unless it is manifestly contrary to the terms or the trustee knows it would be a serious breach of a fiduciary duty the holder owes the beneficiaries ((b)); and the holder of a power to direct is presumptively a fiduciary, who acts in good faith with regard to the purposes of the trust and the interests of the beneficiaries and is liable for a loss that results from a breach of a fiduciary duty ((c)).

General information about Massachusetts law, not legal advice.