Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney before making decisions about your estate.
Detailed Answer
To ensure Massachusetts real property becomes part of an estate—whether for probate administration or trust planning—you must follow specific steps. Below is a general roadmap under Massachusetts law.
1. Identify the Ownership Structure
Determine how the property is held. Common forms include sole ownership, joint tenancy, tenancy in common, or ownership in a revocable living trust. Your starting point affects which transfer process applies.
2. Create or Review Your Trust Document
If you plan to avoid probate by using a revocable living trust, draft or update the trust instrument under the Massachusetts Uniform Trust Code (M.G.L. c. 203E). Ensure it names you as Grantor and Trustee, and your successor Trustee (M.G.L. c. 203E, § 405).
3. Prepare a New Deed
Use a Quitclaim Deed or Warranty Deed to transfer title. The deed must name the current owner (Grantor) and the trust (Grantee). Include the full legal description from the Registry of Deeds records.
4. Sign and Acknowledge the Deed
Have the Grantor sign before a notary public. Acknowledgment is mandatory under M.G.L. c. 183, § 3. Without proper notarization, the Registry will reject the document.
5. Record the Deed
Submit the original, notarized deed to the county Registry of Deeds where the property lies. Pay the recording fee and excise tax (typically $2.28 per $500 of consideration). Once recorded, your property legally becomes part of the trust or estate.
6. Update Insurance and Tax Records
Notify your homeowner’s insurer to list the trust as an additional insured. Inform the local assessor’s office of the ownership change to avoid hiccups in property tax billing.
7. Review Mortgage and Lender Requirements
If the property carries a mortgage, check the loan documents for due-on-sale clauses. Many lenders allow transfers into a revocable trust without triggering acceleration under federal law (12 U.S.C. § 1701j-3(d)(8)).
Helpful Hints
- Verify the legal description on the existing deed; even minor errors can cause delays.
- Keep copies of all recorded deeds and receipts in your estate plan file.
- Confirm successor Trustee details to prevent future administration issues.
- Ask your attorney to conduct a title search before any transfer.
- Check for outstanding liens or encumbrances that may need payoff before recording.
Massachusetts statutes referenced:
M.G.L. c.183 §3,
M.G.L. c.203E §405.