Work With An Experienced Massachusetts Attorney On Your Real Estate Matter
Real estate is often one of, if not the most valuable asset, a person has. Planning carefully is necessary to best protect your real estate.
At Curley Law Firm LLP, our attorneys advise clients regarding real estate holdings in connection with their elder law and estate planning matters because planning for real estate is always among our clients’ goals. Our qualified elder law attorneys have years of experience advising clients regarding real estate.
Why Work With Our Certified Elder Law Attorneys?
If you are acting as a trustee or personal representative/executor when selling real estate, it is critical to understand whether and how the probate or trust may authorize you to market and sell real estate. Your understanding the obligations and responsibilities of those roles can protect you from personal liability. More importantly, our involvement can help ensure that you are protected throughout the transaction.
At Curley Law Firm LLP, our law practice is dedicated exclusively to estate planning and elder law. With decades of combined experience, our lawyers have helped numerous clients with these legal issues.
For additional information about our qualifications and the benefits of retaining our services, please see our page entitled “Why Choose Us.”
Common Concerns About Real Estate
Below are brief answers to some common questions our attorneys receive about protecting real estate in Massachusetts. However, every case is unique, and some of the answers below may not apply to you. If you have questions about your specific circumstances, we encourage you to discuss your case with one of our attorneys.
How should you own your property: Individually, jointly or in a trust?
The way you “title” (own) your property has major impacts on probate, taxes and MassHealth. Owning a home individually means it will almost certainly go through probate. Owning it jointly with rights of survivorship avoids probate, but it gives your co-owner immediate rights and exposes the home to their creditors.
For most families, a trust is the most flexible tool. A revocable trust avoids probate and lets you stay in control. An irrevocable trust is a more advanced tool that can provide protection from MassHealth long-term care costs. Our lawyers can review your goals to find the right solution.
What are the pros and cons of transferring your home to your children?
Transferring your home directly to your children during your lifetime is rarely a good strategy and may create serious problems. First, it triggers the five-year MassHealth look-back period, which can cause a long penalty period. Second, you lose control over the asset. The home is now legally theirs and is vulnerable to their financial problems, a divorce or a lawsuit.
Finally, a direct transfer can create a significant tax problem. Your children may receive your old “cost basis,” meaning they will likely face a large capital gains tax when they sell. A far better option is often an irrevocable trust, which can achieve your protection goals without these risks. Our attorneys can explain this in detail during a consultation.
How does a life estate or joint tenancy affect control, taxes and benefits?
Both joint tenancy and life estates are used to avoid probate, but they have some key differences. Owning property as joint tenants gives your co-owner an immediate, shared ownership interest and the full right of survivorship. This means they will own 100% of the property if they outlive you.
With a life estate, you (the “life tenant”) keep the exclusive right to live in the home. However, you transfer ownership upon your death to a “remainderman,” such as your child or another heir. While this does preserve the important “step-up in basis” for tax purposes, you cannot sell or mortgage the home without the remainderman’s permission. Both strategies can also trigger the MassHealth five-year look-back penalty.
If your loved one goes into a nursing home, does MassHealth make them sell their home?
MassHealth may not force a person to sell their home to qualify for nursing home care, as long as the applicant states an “intent to return home.” The home is often a noncountable asset during their lifetime. However, upon death, or sometimes sooner, MassHealth will seek to get paid back for the cost of your loved one’s care.
They do this by placing a lien on the home. When the applicant passes away, MassHealth can “recover” the money it spent by forcing the sale of the home. A person may avoid this lien if their spouse or a disabled child lives in the home. Our attorneys can walk you through proactive planning strategies that can protect the home from a future MassHealth lien.
Contact A Massachusetts Real Estate Attorney
Real estate is a key part of your legacy. To discuss your estate planning and real estate options with one of our experienced lawyers, please schedule a consultation by calling 866-406-8582. You may also fill out our online form, and we will contact you. We serve clients in Wakefield and throughout Essex, Suffolk and Middlesex counties, and we can also arrange out-of-office consultations by appointment.