If the trust is protected, then removing it does not make a fraudulent transfer, because you are not moving the money to "defraud, hinder or delay" any creditor, since the money is moving from one protected status to another.
I think this transaction is okay, but frankly, if there's a lot of dough involved, I would want to do some substantial research into the case law to determine if there were any "gotchas" here. Massachusset's homestead exemption, fyi, is $500,000 -- assuming that it mattered, which based on your stated facts, it apparently doesn't.
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