When it comes to protecting your residential property, which is likely one of your most valuable assets, many Massachusetts residents discover that their estate planning options differ from those available in other states. Unlike approximately 30 states across the country, Massachusetts does not recognize transfer-on-death (TOD) deeds for real estate. This means that Massachusetts homeowners must pursue alternative strategies to ensure their residential property passes smoothly to their heirs without the time, expense, and public nature of probate court proceedings.
For Massachusetts property owners, placing residential real estate into a revocable living trust is one of the most effective methods to avoid probate while maintaining full control during your lifetime. At Roark & Mansur Law, PLLC, our trust attorneys guide clients in estate planning and asset protection matters throughout the Merrimack Valley, Greater Lowell, and southern New Hampshire.
Steps Our Firm Takes to Protect Your Residential Property
A revocable living trust provides a solution to these challenges. When you transfer your home into a properly established trust, you maintain complete control as the trustee during your lifetime. You can sell the property, refinance it, or even revoke the trust entirely if circumstances change. Upon your death, the successor trustee you’ve named can transfer the property directly to your designated beneficiaries without court involvement, probate costs, or public disclosure.
Beyond probate avoidance, trusts offer additional advantages for residential property. They provide continuity of management if you become incapacitated, protect privacy regarding your estate’s assets and beneficiaries, and can include specific instructions for property maintenance and eventual sale. For blended families, trusts can ensure that a surviving spouse has the right to live in the home (a “life estate”) while guaranteeing that children from a previous marriage ultimately inherit the property.
Step One: Creating a Comprehensive Trust Document
The foundation of transferring property into trust begins with drafting a thorough trust agreement. This document establishes you as both the grantor (settlor/creator) and trustee, names successor trustees who will manage the trust after your death or upon your incapacity, and identifies the ultimate beneficiaries who will inherit the property.
Working with an experienced estate planning attorney ensures that your trust document addresses Massachusetts-specific legal requirements and your unique family situation. The trust should specify how the property will be distributed, whether outright to adult children, held in continuing trust for the beneficiary(s), or structured to provide a life estate for a spouse, with the remainder interest going to other beneficiaries.
At Roark & Mansur Law, PLLC, our estate planning attorneys customize trust provisions to reflect your intentions while incorporating necessary protections.
Step Two: Executing a New Deed & Declaration of Homestead
Once your trust document is properly drafted and signed, the next critical step involves preparing and executing a new deed to transfer ownership from your personal name to the trust. In Massachusetts, this typically involves a quitclaim deed or warranty deed, with language identifying you as grantor and your trust (with you as trustee) as the grantee.
The deed must contain precise language, including the complete legal description of the property, the proper identification of your trust (including its full name and date of creation), and any necessary reservations or exceptions.
A Declaration of Homestead will also be prepared and recorded, This is an important document that protects the equity in a primary resident up to state specific limits.
Step Three: Recording the Deed and Declaration of Homestead with the Registry of Deeds
Massachusetts law requires that deeds be recorded at the Registry of Deeds in the county where the property is located. This public recording provides constructive notice of the ownership change and establishes the priority of your ownership interest.
Recording requirements include payment of filing fees, proper notarization of all signatures, and submission during business hours or through the registry’s electronic recording system if available. An attorney handling this process will ensure that all documents are properly prepared, the correct fees is paid, and will monitor the recording to confirm successful completion.
Step Four: Notifying Relevant Parties
After successfully recording your new deed, you’ll need to notify certain parties of the ownership change. Your homeowner’s insurance carrier must be informed to update the policy to reflect the trust as the named insured. Your mortgage lender should also be notified, though in Massachusetts, transferring property into a revocable living trust where you remain a trustee and beneficiary generally does not trigger a due-on-sale clause.
You should also update your property tax bills to reflect the trust as the owner. Massachusetts law protects trust transfers from affecting property tax treatment, ensuring you won’t face reassessment or loss of exemptions simply for prudent estate planning but may need to reapply under the trust..
Benefits of Putting Residential Property in Trust Instead of TOD Deeds
While Massachusetts law does allow transfer-on-death (TOD) deeds for real estate, revocable living trusts offer significant advantages. Unlike TOD deeds, trusts provide incapacity protection through successor trustees who can manage your property if you become unable to do so. Trusts offer greater flexibility, including that you can easily amend beneficiaries and terms without recording new deeds or paying registry fees.
They also provide superior privacy, as trust details remain confidential while TOD deeds are public records. For owners of multiple properties, a single trust can also sometimes manage all real estate centrally. Most importantly, trusts coordinate seamlessly with your comprehensive estate plan in ways that TOD deeds cannot.
Avoiding Costly Errors Through Professional Guidance from a Trust Attorney
While the process may appear straightforward, numerous pitfalls await the unwary. The attorneys at Roark & Mansur Law, PLLC, bring over 70 years of combined experience to these challenges. We understand both Massachusetts real estate and trust law and structure our practice around personal attention to each client’s unique situation.
Contact Roark & Mansur Law, PLLC, today to schedule your consultation and learn how we can help you put your residential property in trust while creating a comprehensive estate plan tailored to your family’s needs.