Can I Transfer Real Estate Into A Trust?
For many people, real estate is among their most valuable assets. Protecting real estate—whether you are dealing with your primary residence, a rental unit, or any other property—is an important part of estate planning. This raises an important question: Can I transfer my real estate in a trust?
In Massachusetts, the answer is “yes”—but your specific needs and goals will determine if it is the best option for your situation. Here, our Boston estate planning attorneys provide a comprehensive overview of the most important things that you should know about transferring real estate into a trust in Massachusetts.
You Can Transfer Real Estate into a Trust
You have the right to put real estate into a trust in Massachusetts. Indeed, putting real property (real estate) into a trust is not only feasible, it is a relatively common estate planning practice. When you transfer real estate into a trust, you change the ownership of the property from your personal name to the trust itself. There are a number of potential advantages to using a trust as an estate planning tool for real estate, including avoiding probate and even asset protection.
The Property Deed Must Reflect the Change
To put real estate into a trust in Massachusetts, you must take the proper steps. Most notably, you must alter the property deed to reflect the change. The property deed is a legal document that indicates ownership status of the property. The deed should state that the trust is now the owner of the property. It must be accurate. notarized, and recorded in the county where the property is located. Filing the dead with the county is a legal requirement in the Commonwealth.
Make Sure any Transfer Achieves Your Estate Planning Goals
You can put real estate into a trust—but should you? The answer depends entirely on your specific estate planning needs and your estate planning goals. A trust may or may not be the right option for your estate plan. Here are some key considerations:
- Asset Protection: Make sure you understand how transferring your property to a trust will (or will not) protect it from creditors. Some trusts offer strong asset protection. However, other trusts offer limited assets protection.
- Tax Implications: You should always evaluate the potential tax consequences—both for estate tax and property tax—of moving your real estate into a trust. Tax issues matter.
- Control over Assets: Be sure to consider how the trust will manage the property and who will have control. Some trusts offer strong flexibility, they can even be revoked outright. However, other trusts are not revocable.
Set Up a Confidential Case Review With a Boston Estate Planning Lawyer
At Fisher Law LLC, our Massachusetts estate planning attorneys haves extensive experience handling trusts and have advanced degrees in tax law. If you have any questions or concerns about transferring real estate into a trust, we can help. Contact us right away for your confidential initial appointment. We provide solutions-forward estate planning services in Boston and throughout the Commonwealth of Massachusetts.
