Estate Planning Help For Real Estate Issues

The family residence and other real estate is often a key concern in estate planning. A realty trust provides for a smooth transfer of real property to the intended beneficiary. Because these trusts bypass the probate process and deed recording, there is the added advantage of privacy.

The experienced lawyers of Cushing & Dolan, P.C., are knowledgeable about Massachusetts realty trusts, and other estate planning and succession considerations regarding your home, vacation property or land.

We represent individuals, couples and family-owned businesses in the Boston area and throughout Massachusetts. Arrange a consultation today to explore a realty trust and other estate planning.

Realty Trust (Nominee Trust)

The Commonwealth of Massachusetts recognizes the realty trust, also known as a nominee trust, as a useful vehicle to hold legal title to real estate. Your revocable or irrevocable trust can serve as the beneficial owner. As a nominee trust, the trustees can act only with the express authority of the beneficiaries.

There are two main purposes for putting your home or other real property in a realty trust:

• Confidentiality — The beneficiaries are not listed publically at the Registry of Deeds, allowing for anonymity of ownership.
• Ease of transfer — Transactions involving property in nominee trusts do not have to be recorded with the Registry of Deeds.

A realty trust does not confer any protection from creditors, transfer taxes, gift taxes or estate taxes. Our knowledgeable attorneys can address your concerns through separate strategies; for example, the property can later be transferred to an irrevocable Medicaid trust in anticipation of nursing home care and Medicaid eligibility.

Frequently Asked Questions On Realty Trusts

Suppose you are considering placing your home in a trust. In that case, it is essential to understand how it affects probate, taxes, creditors and even your eligibility for long-term care benefits like Medicaid or MassHealth.

Can a realty trust help my family avoid probate and maintain privacy when transferring real estate?

Yes, a realty trust can help your family avoid probate and keep your real estate matters private. In Massachusetts, when property is owned by a trust, it usually does not go through probate upon the death of the original owner.

This can simplify the process and reduce the time and costs of settling an estate. A realty trust also provides privacy benefits because:

• The trust document itself is not recorded in public land records.
• Only the trustee’s name appears on the deed, not the names of the beneficiaries.
• The terms of the trust remain confidential, unlike a will, which becomes public during probate.

This setup makes it easier for families to manage property transfers discreetly.

Are there any tax or creditor protections available when placing my home in a realty trust in Massachusetts?

Generally, placing your home in a realty trust does not provide tax or creditor protection in Boston. Realty trusts are often considered transparent for tax purposes, meaning:

• You remain responsible for property taxes and capital gains taxes.
• The IRS still sees you as the owner, so there is no income tax advantage.

In terms of creditor protection:

• Realty trusts do not shield your home from creditors.
• If you are sued or owe debts, a creditor may still access the property if you are listed as a beneficiary or trustee.

For tax advantages or stronger asset protection, a different kind of trust may be more suitable, like an irrevocable trust. Realty trusts can offer convenience and privacy, but are not a one-size-fits-all solution.

How does placing property in a realty trust affect eligibility for Medicaid or MassHealth long-term care benefits?

Placing property in a realty trust does not automatically protect it from being counted by Medicaid or MassHealth. In Massachusetts, eligibility for long-term care benefits considers assets that are deemed available or countable. Additionally:

• Realty trusts are usually treated as revocable, which means the state may still view the property as your asset.
• If MassHealth determines you still have control over the trust, the property may count toward your asset limit.
• Transferring your home into a trust within five years of applying for benefits may trigger a penalty period, delaying your eligibility.

If protecting your home for long-term care purposes is a priority, speak to an attorney in Boston. They can help set up the right type of trust, preferably irrevocable, to meet your needs better.

Call Our Office To Start Planning

For a deeper discussion of realty trusts to maintain secrecy of your holdings, call Cushing & Dolan, P.C. at 888-759-5109 or contact us online. We offer a free consultation, with eight convenient locations in Boston and surrounding counties.