Protecting Your Home: Estate Planning Strategies for Massachusetts Residents

1. Avoiding Probate with Proper Estate Planning

When a homeowner passes away without a proper estate plan, their property typically goes through probate. This court-supervised process of distributing assets can be lengthy, costly, and public. Here are two key strategies to avoid probate:

Revocable Living Trust

A revocable trust allows you to transfer ownership of your home to a trust while still maintaining control during your lifetime. Upon your passing, the property passes directly to your beneficiaries without probate.

Pros:

• Keeps the home out of probate

• Easily amended during your lifetime

• Can include successor trustee instructions in case of incapacity

  
  

Life Estate Deed (a.k.a. “Lady Bird” Deed Alternative)

In Massachusetts, a life estate deed allows you to transfer the home to your heirs while retaining a “life estate”—the right to live in and control the property for the rest of your life.

Pros:

• Avoids probate upon death

• May help preserve Medicaid eligibility

• Protects the home from certain creditor claims after death

  
  

Caution: Life estate deeds are difficult to reverse. You’ll need your remainder beneficiaries’ consent to sell or refinance the home.

2. Protecting the Home from Nursing Home (MassHealth) Costs

Massachusetts residents applying for MassHealth (Medicaid) to cover long-term care costs face potential estate recovery, where the state may try to recover expenses from the home after death. Proper planning helps avoid this.

Irrevocable Trusts for MassHealth Planning

An irrevocable income-only trust can protect the home from nursing home costs—but timing is critical.

Key Points:

• The home is transferred into the trust

• You can continue living in the home and receive income (but not principal)

• The 5-year lookback period applies: MassHealth will not consider the home protected unless it’s been in the trust for at least 5 years

  
  

This is one of the strongest tools to preserve the family home from being sold to repay nursing home costs. However, it requires giving up direct control over the property.

3. Common Misconceptions About Joint Ownership

Many Massachusetts homeowners assume that adding a child to the deed as a joint tenant will solve everything. While joint tenancy can avoid probate, it doesn’t protect the home from:

• The child’s creditors

• Divorce proceedings

• Nursing home recovery if the parent later applies for MassHealth

  
  

This method can create more legal and financial risks than it solves.

Legal Risks and Considerations

When considering joint ownership, it’s vital to understand the implications. If the child faces financial difficulties, creditors may place claims against your home. Similarly, during a divorce, the property could be vulnerable to division. Lastly, if you need to apply for MassHealth, the home may still be at risk.

Bonus Tip: Don’t Rely Solely on Joint Ownership

Instead, consider a more comprehensive estate plan that includes a trustworthy revocable living trust or an irrevocable trust as discussed previously. These targeted strategies can more effectively protect your home from different risks.

Final Thoughts: Plan Early, Protect More

The best way to secure your family home from probate and nursing home costs is through early and strategic planning. Each family's situation is unique, and navigating Massachusetts laws can be complex. At Lake Shore Legal, we guide clients through the best options based on their individual goals, whether it’s passing the home to children, preparing for long-term care, or preserving eligibility for MassHealth.

Let’s make sure your home stays in your family — not in the hands of the state. If you are looking for a reliable solution to protect your home, consider reaching out to professionals who can assist you.

Lake Shore Legal | Central Massachusetts Estate Planning Attorneys

Contact us today to schedule a free consultation and start protecting what matters the most.