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Five Things to Know When Transferring Your Home to a Revocable Trust

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One of the most common ways to own real estate is in a revocable trust, also called a revocable living trust. A revocable trust allows for unrestricted control and use of the property by the owners for their lifetimes.

A revocable trust is created by a person called the “grantor” or “settlor” who designates a “Trustee” who will manage the assets owned by the trust for the benefit of the trust “beneficiaries”. In a revocable trust, the owner of the real estate is typically the grantor, Trustee and beneficiary of the trust during the owner’s lifetime. If a married couple transfers their home to a revocable trust, both members of the couple are often the grantors, Trustees and beneficiaries.

There is a federal law that permits the transfer of mortgaged residential real estate with less than five units to a revocable trust of which the borrower is a beneficiary without impacting an existing mortgage loan and without requiring permission from the mortgage lender.

Here are five things to know about transferring your home to a revocable trust:

1. Benefits of a Revocable Living Trust

Transferring real estate into a revocable trust has many benefits and can achieve many common planning goals.

Holding real estate in a revocable trust will allow the property to avoid the probate process at the death of the owner (or at the death of the surviving owner if the property is owned by more than one person). Probate is the court process that transfers title from a deceased person to the deceased person’s heirs or the beneficiaries under the Will. In Massachusetts, it can take several months or more for the probate court to appoint a Personal Representative of the estate and this delay can wreak havoc with the management of property. No one has the authority to sell or lease the property until the court makes the appointment. If a trust is used to avoid probate, the successor Trustee of the Trust can manage or sell real estate owned by the Trust immediately after the owner’s death for the benefit of the Trust beneficiaries.

Holding real estate in trust can be especially beneficial if you own real estate in multiple states, since real estate must be probated in the state in which it is located. Owning real estate in trust will avoid multiple probate proceedings.

If the value of your estate is large enough to be subject to estate tax ($2 million in Massachusetts, $13.9 million for federal estate tax purposes) and you are married, holding real estate in a trust can be part of a plan to shelter assets at the death of the first spouse to die from taxation at the death of the surviving spouse, saving overall estate taxes for those who inherit the assets at the death of the surviving spouse.

Last but not least, revocable trusts can be used to manage real estate for young children or other beneficiaries. For example, if you have school-age children and would like your home maintained for them if you passed away so they can continue to attend school in the town where they live, or if you would like a beloved vacation home held in trust for the benefit of your children and grandchildren after your death, a trust is an excellent vehicle for these situations.

2. Homestead Protection

The Massachusetts Homestead Law allows you to protect some or all of the equity in your primary residence from creditors’ claims by filing a Declaration of Homestead with the Registry of Deeds. If you transfer your home to a revocable trust, the Declaration of Homestead you filed when your home was individually owned will likely be void. A new Declaration of Homestead, signed by the Trustees of the revocable trust should be filed with the deed conveying the property to the Trustees. Homes held in trust are entitled to the same Homestead protection as homes owned individually, as long as a proper Declaration of Homestead is filed by the Trustees.

3. Title Insurance and Homeowners Insurance

Two important tasks that should be undertaken when you transfer real estate to a trust relate to your homeowner’s insurance and your owner’s title insurance.

You should notify your homeowner’s insurance agent when you transfer property to a revocable trust and ask them to update your policy to reflect that your property is titled in trust. Also note that holding real estate in a revocable trust does not afford you any liability protection. You should make sure to maintain adequate liability insurance to protect the real estate against liability. If you do not presently have an umbrella policy you may wish to speak with your homeowner’s insurance agent about obtaining such a policy.

If you purchased owner’s title insurance when you purchased your property, you may need to take action to continue that coverage following transfer of your property to a revocable trust. Some types of owner’s title insurance policies require an endorsement to continue coverage after property is transferred to a trust and some do not. Some title insurance companies will require a title rundown before issuing an endorsement to the policy, and some will charge a fee for the endorsement.

4. Residential and Other Property Tax Exemptions

Boston, Brookline, Cambridge, and other cities and towns in the Commonwealth offer a residential real estate tax exemption to homeowners who occupy real estate as their principal residence. If you transfer your property to a trust you may need to re-apply for the exemption and provide a copy of the relevant trust documents to the city or town. To ensure you do not lose your residential exemption (even temporarily) when your property is transferred into trust, contact your city or town to determine what steps you need to take to continue that exemption after your property is transferred into trust.

Cities and towns may also offer property tax exemptions to blind, elderly or disabled property owners. If you are eligible to receive a property tax exemption from the city or town where your home is located, the transfer of your home into trust may affect these exemptions. If you receive a property tax exemption you should contact your city or town to determine whether or not the conveyance of the property into trust will affect the exemption, and whether or not this can be avoided.

5. Beach Stickers, Dump Stickers, and Other Amenities

Every city and town is unique, and some cities and towns offer amenities that are only available to residents of that city or town. For example, only people who own property in a particular town on the Cape can get a beach sticker that will allow them to park at the beach in that town. In other towns, only homeowners can get a sticker that allows them to bring trash to the town’s transfer station. Other cities may allow you to park on certain streets if you are a resident and have a resident parking permit. If your town offers any of these amenities tied to home ownership, you should inquire with your city or town whether the conveyance of your property into trust will affect your eligibility for these services, and whether or not this can be avoided.

Ownership of real estate in a revocable trust provides many estate planning benefits and is a common practice here in Massachusetts. If you are interested in taking advantage of these benefits, consult with an experienced estate planning attorney who can review with you the pros and cons of transferring real estate you own into a revocable trust. If you do transfer your property, keep in mind the things noted above so that you can enjoy the benefits of a revocable trust without any issues.

Maria C. Baler, Esq. is an estate planning and elder law attorney and partner at Samuel, Sayward & Baler LLC, a law firm based in Dedham. She is also a former director of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA), and the former President of the Board of Directors of the Massachusetts Forum of Estate Planning Attorneys. For more information, visit www.ssbllc.com or call (781) 461-1020. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney.

March 2025

© 2025 Samuel, Sayward & Baler LLC

Understanding Pooled Trusts: Protecting Assets and Benefits for Individuals with Disabilities, Including Older Adults

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Joe is 80 years old and requires health care assistance to such an extent he can no longer remain at home and bring in aides to help him.  Joe decides he needs to transition to a nursing home but he will not be able to afford to pay out of his own pocket for the nursing home in about six months.  Joe will need to apply for long-term care Medicaid benefits to pay for his nursing home expenses thereafter.  At the same time, Joe wants to retain some of his money to pay for items and activities that the Medicaid benefits will not cover.  What can Joe do to ensure he is eligible for Medicaid benefits yet has some funds available to pay for clothing, furniture, a mobile phone, non-prescription medication, and other things?  Joe can transfer a portion of his assets to a so-called special needs “pooled trust” immediately prior to applying for Medicaid benefits. 

A pooled trust is an excellent financial tool designed to help individuals with disabilities protect their assets while still qualifying for government benefits like Medicaid and Supplemental Security Income (SSI), including but not limited to older adults residing in a nursing home. These trusts are managed by non-profit organizations that pool resources from multiple beneficiaries while maintaining separate accounts for each participant. The pooled structure allows for more efficient management of funds, and is simpler and more cost-effective than establishing a traditional special needs trust. Since the trust is managed by a nonprofit organization, administrative costs are typically lower, and beneficiaries can take advantage of the expertise of professionals who ensure compliance with state and federal regulations so their public benefits are not endangered.

The non-profit organization administering the pooled trust typically charges a small percentage fee and completes annual income tax returns in connection with the funds it manages, among other tasks.  When a beneficiary dies, if there are any funds remaining in the beneficiary’s individual account, Medicaid must first be reimbursed from those funds for any expenses paid on the beneficiary’s behalf during the beneficiary’s lifetime (this is known as a Medicaid payback clause).  Thereafter, any funds remaining may be distributed to recipients named by the beneficiary before he or she died and/or to the non-profit organization to support other individuals with disabilities. In Massachusetts, there are three (3) well-known non-profit organizations that administer pooled trusts: Planned Lifetime Assistance Network (PLAN) of Massachusetts and Rhode Island, Inc., The Arc of Bristol County Pooled Trust, and Guardian Community Trust. Beginning in March, I will leave my position at Samuel, Sayward & Baler to serve as in-house counsel for PLAN of Massachusetts & Rhode Island.

Due to Joe’s advance planning, he successfully preserved a portion of his assets in a pooled trust to ensure he had sufficient funds for his personal needs while receiving government benefits to pay for his long-term care in a nursing home. If you have questions about long-term care planning for yourself or a family member, one of our knowledgeable attorneys at Samuel, Sayward & Baler LLC will guide you through your long-term care planning options, including whether a special needs pooled trust may be the right fit for you now or in the future.  

Attorney Abigail V. Poole is a senior associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC which focuses on advising its clients in the areas of trust and estate planning, estate settlement and elder law matters. She is an active member and Past President of the Massachusetts Chapter of the National Academy of Elder Law Attorneys (NAELA), and beginning in March 2025 will serve as in-house counsel for the PLAN of Massachusetts and Rhode Island, Inc.  This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit ssbllc.com or call 781/461-1020. 

February, 2025

© 2025 Samuel, Sayward & Baler LLC

Five Estate Planning Myths

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As in most areas, myths, misconceptions, and misunderstandings abound in the estate planning arena.  Read on for five common estate planning myths. 

Myth No. 1 – If you have a Will your Estate will not need to go through Probate.   Many people think that if they create a Will, their estate will avoid probate.  This is not true. Probate is the court process of changing the title on assets when someone passes away.  Assets that are owned in a deceased person’s individual name and for which there is no named beneficiary are no longer accessible once the owner of the asset has died.  This is the case whether or not the owner of the asset had a Will.  A Will allows the maker of the Will to choose who will receive his or her probate assets.  However, a Will does not avoid probate.  

Myth No. 2 – A Couple that lives together for 7 years in Massachusetts will be deemed Married under Common Law. While common-law marriage does exist in some states, Massachusetts is not one of them. No matter how long a couple lives together, neither Massachusetts nor the federal government will recognize them as married.  This is important to understand because a non-spouse has no inheritance rights (unlike a spouse), nor is a non-spouse partner entitled to Social Security benefits or pension benefits that a spouse is entitled to receive.  Of course, partnered couples are not prohibited from leaving assets for the benefit of each other.  The key is they must take steps to make that happen; it will not happen under the intestate law in Massachusetts.  

Myth No. 3 – If a Trust is irrevocable, no distributions can be made from the Trust.    An Irrevocable Trust is an excellent planning tool for some circumstances such as tax planning and long-term care planning.  Many people think that if a Trust is irrevocable that means that no distributions may be made from the Trust.  This is not true.  For example, an Irrevocable Income Only Trust is an irrevocable Trust often used to preserve assets from needing to be spent down on long-term care costs.  The way that it works is that the maker of the Trust transfers assets to a Trust that strictly prohibits distributions of principal from the Trust to the Trust maker but permits distributions of income.  For example, if I had rental real estate and transferred it to an irrevocable Trust, I could continue to receive the rental income, but I could not receive a distribution of the property.

Myth No. 4 – The law authorizes a Parent to collect an Inheritance on behalf of their Minor Child.   Leaving money directly to a minor (under age 18) creates an administrative nightmare and should be avoided.  A minor is not legally able to own assets.  As such if a minor is the beneficiary of an estate or is named as a beneficiary of a retirement account or life insurance policy, a legal representative for the child will need to be appointed by the court in order to collect that inheritance.  While the parent of the child may be the best person to serve in that role, it is not automatic.  The parent must petition the court to be appointed as the child’s conservator.  The court will investigate whether the parent is a suitable person to receive the funds for the minor and if the Judge finds the parent a suitable custodian for the funds, the court will issue a decree appointing the parent as the child’s conservator.  At that point, the parent may collect the inheritance on behalf of the child.  But it doesn’t end there.  The parent, in her capacity as the conservator for the minor child, must file a report (called an accounting) with the court on an annual basis itemizing all of activity in the child’s account (i.e., earnings and disbursements) during the prior calendar year. The court may appoint a guardian ad litem to review the accounting submitted by the parent-conservator and that person may challenge the parent’s management of the funds.  All of this is time-consuming, expensive and aggravating.  To add insult to injury, once the minor turns 18, he or she is entitled to receive the assets outright and is free to do with them as he or she wishes (think fast cars, spring break, and lots of shopping).  Creating a Trust to receive assets passing to a minor, or even to a young adult beneficiary, is the best way to ensure that the court is not involved in the process, that the person you want to manage assets for the beneficiary is able to do so, and that the beneficiary may use the assets only for purposes you decide are important and/or at ages that you dictate.

Myth No. 5 – Just because you are an Heir does not mean you are Entitled to Anything.    For the most part, people in our country have the right to leave their estate to whomever they wish.  There are some exceptions to this general rule.  For example, in Massachusetts we have a statute that protects a surviving spouse from being disinherited.  In addition, there may be situations where someone is legally obligated to benefit someone via their estate (e.g., a divorce agreement to leave assets to a former spouse or for the benefit of children).  Assuming those situations do not exist, a person is free to leave their estate to whomever they wish; they are not obligated to leave their estate to their family members, not even to their adult children. While an heir may have the right to contest a Will or challenge a Trust, there are specific and limited reasons that someone will be successful in doing so.  

The above are just five of the many misconceptions we hear from clients who are starting the estate planning process.  If you have been relying on your friends and neighbors to advise you about your estate plan, you may want to reach out to an experienced estate planning attorney to learn the real scoop.  Please call us or email us to schedule an appointment with one of our experienced estate planning attorneys who will debunk those myths and advise you about the best way to plan your estate.  

Attorney Suzanne R. Sayward is a partner with the Dedham law firm of Samuel, Sayward & Baler LLC which focuses on advising its clients in the areas of estate planning, estate and Trust settlement and elder law matters. She is certified as an Elder Law Attorney by the National Elder Law Foundation, a private organization whose standards for certification are not regulated by the Commonwealth of Massachusetts.  This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit our website at www.ssbllc.com or call 781/461-1020.

February, 2025

© 2025 Samuel, Sayward & Baler LLC

Your Legal Obligations Regarding Tax Filings

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It’s January and everyone is starting to receive tax documents for 2024. If you are a Personal Representative or a Trustee, what do you do with these documents? Attorney Brittany Hinojosa Citron discusses your legal obligations regarding tax filings. Please watch and if you have any questions or want to learn more please call us at 781 461-1020.

Corporate Transparency Act Whiplash

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The Corporate Transparency Act (CTA) is a federal law passed in 2021 with a start date of January 1, 2024.  The purpose of the law is to reduce money laundering and tax fraud.  The manner in which Congress seeks to achieve this goal via the CTA is to require every ‘entity’ (other than those that are exempt) to file a report with the Financial Crimes Enforcement Network (FinCEN) disclosing detailed information about the individuals who are associated with the entity as owners and as managers who exercise substantial control.   This is called a Beneficial Ownership Information report or BOI.  An ‘entity’ is defined as a company that was formed by filing with the Secretary of State’s office.  

This law primarily impacts small businesses formed as a corporation or an LLC.  Those who created an LLC to own their rental or investment real estate for liability protection purposes are also required to file a BOI.  The government estimates that the filing requirements will impact more than 32 million companies that were in existence before January 1, 2024 and an additional 5 million entities formed in 2024 and each year going forward.  The estimated cost to administer this law is $22 billion, plus an additional $2 billion each year for updated reports.

The law requires entities in existence as of January 1, 2024, to file their Beneficial Owner Information report no later than January 1, 2025.  Entities created during 2024, were required to file with FinCEN within 90 days.  The law carries very steep penalties for failure to timely file.  

Needless to say, many people are unhappy with this law and argue that is an unwarranted governmental intrusion.  Lawsuits have been brought against the federal government to prevent its enforcement.  

Here’s a brief overview of the major legal wrangling over enforcement of the CTA as of today (January 15, 2025):

  • On December 3, 2024, a federal district court judge for the Eastern District of Texas issued a nationwide preliminary injunction prohibiting the government from enforcing the law. 
  • The federal government appealed the injunction and on December 23, 2024, a 3-judge panel of the Fifth Circuit Court of Appeals lifted the injunction reinstating the filing requirement.  Following that ruling, the filing deadline was extended from January 1, 2025 to January 13, 2025. 
  • On December 26, 2024, the Fifth Circuits merits panel issued a ruling reinstating the nationwide preliminary injunction against enforcement of the CTA.  This is where the law stands today.  FinCEN has updated its website with a statement to the effect that reporting companies are “not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” 

The Fifth Circuit has put this matter on an expeditated tract.  Briefs from both sides are due by February 28, 2025 and a hearing on the matter is scheduled for March 25, 2025.

So small business entity, you are safe from the CTA reporting requirements for the time being but you may want to be ready to file on a moment’s notice if the matter is resolved in the government’s favor and a short deadline enacted. 

Attorney Suzanne R. Sayward is a partner with the Dedham firm of Samuel, Sayward & Baler LLC which focuses on advising its clients in the areas of estate planning, estate settlement and elder law matters. She is certified as an Elder Law Attorney by the National Elder Law Foundation, a private organization whose standards for certification are not regulated by the Commonwealth of Massachusetts.  This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit www.ssbllc.com or call 781/461-1020.

January, 2025

© 2025 Samuel, Sayward & Baler LLC

5 Resolutions for the New Year

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As the calendar turns to a new year, many of us feel the pull of fresh starts and renewed motivation. It’s easy to procrastinate on important financial and housekeeping tasks, but the new year is the perfect opportunity to channel the season’s momentum and tackle them head-on. These resolutions aren’t just about getting organized—they’re about safeguarding your future, easing burdens for your loved ones, and simplifying your life. Here are five resolutions to consider for the year ahead.

  1. Update or Create Your Estate Plan

If you haven’t updated your estate plan in a while—or if you don’t have one—it’s time to prioritize this critical task. Life changes quickly, and having a plan in place is critical if you become ill or pass away unexpectedly. Whether it’s updating beneficiaries, creating a will, or setting up a trust, meeting with an estate planning attorney and working with them to create an appropriate estate plan ensures your wishes will be carried out and your loved ones protected. Don’t let uncertainty linger. Schedule a meeting with a trusted estate planning attorney to make sure your estate is in order.

  1. Consult a Financial Advisor

If you’re feeling uncertain about your financial future or want guidance on growing your wealth, now is the time to reach out to a financial advisor. These professionals can help you navigate retirement planning, investment strategies, and even budgeting. A quick consultation can give you a clear picture of where you stand financially and provide actionable steps to achieve your goals. Whether you’re saving for a big purchase, planning for college tuition, or preparing for retirement, a financial advisor can help you stay on track.

  1. Create a Centralized System for Accounts and Passwords

No one likes to think about emergencies, but having a centralized list of accounts, passwords, and key contacts is a practical way to prepare for the unexpected. This system can include login credentials for online accounts, contact information for financial advisors and attorneys, and instructions for accessing important documents. Digital tools like password managers or a secure, physical notebook can help you organize this information. This resolution isn’t just about convenience—it’s about making things easier for your family if something happens to you.

  1. Reassess Your Budget and Financial Goals

A new year is a great time to take a fresh look at your budget. Are you spending in line with your values and goals? Do you have any automatic monthly subscriptions like streaming services or gym memberships that you no longer use? Reassess your monthly expenses, and look for areas where you can cut back or reallocate funds. It’s also a good idea to evaluate your financial goals for the year ahead. Whether you’re aiming to pay off debt, save for a vacation, or contribute more to your retirement account, setting specific targets can make a big difference.

  1. Declutter Your Home Strategically

Housekeeping resolutions can be just as impactful as financial ones. Decluttering your home doesn’t just create a more pleasant living environment; it can also reduce stress and make it easier to manage your household. Focus on one area at a time—perhaps starting with paperwork or items you no longer use. Donate, recycle, or dispose of unnecessary items to create a cleaner and more organized space.

The temptation to procrastinate on these tasks is strong, but the new year is the perfect moment to take action. By addressing these legal, financial and housekeeping resolutions now, you can make meaningful strides toward securing your future and your family’s future and simplifying your life. Take advantage of the fresh energy this season brings and set yourself up for success in the year ahead—you’ll thank yourself later.

Attorney Leah A. Kofos is an associate attorney with the Dedham firm of Samuel, Sayward & Baler LLC, which focuses on advising its clients in the areas of trust and estate planning, estate settlement, and elder law matters. This article is not intended to provide legal advice or create or imply an attorney-client relationship. No information contained herein is a substitute for a personal consultation with an attorney. For more information visit ssbllc.com or call 781-461-1020.

© 2024 Samuel, Sayward & Baler LLC

Wills • Trusts • Elder Law • Long-Term Care Planning • Estates

©2025 Samuel, Sayward & Baler LLP. All Rights Reserved. The information presented on this website should not be construed to provide legal advice, nor does it constitute the formation of an attorney/client relationship. Read the disclaimer.