Can You Set Up A Lady Bird Deed In Massachusetts?

Broadly defined, a Lady Bird deed is a specialized type of real estate deed that, among other things, states who will inherit the property when the owner of it dies. Lady Bird deeds are only allowed in a minority of states. Massachusetts does not allow Lady Bird deeds. However, there are alternative options available. Here, our Boston estate planning attorney explains the key things you need to know about these deeds in Massachusetts.

What is a Lady Bird Deed? 

A Lady Bird deed is also known as an enhanced life estate deed. It allows a property owner to retain full control over real estate during life while naming a remainder beneficiary who automatically takes title at death. The defining feature is retained authority. The grantor may sell, mortgage, or otherwise dispose of the property without consent from the remainder beneficiary. That retained control distinguishes it from a traditional life estate. With a traditional life, the remainder interest limits the life tenant’s ability to act unilaterally. 

Lady Bird Deeds are Only Used in a Minority of States (Not the Commonwealth) 

You cannot set up a Lady Bird deed in Massachusetts. Real property in the Commonwealth is not eligible for this type of arrangement. Indeed, Lady Bird deeds are only recognized in a minority of U.S. jurisdictions. If you do try to put a Lady Bird deed (enhanced life estate deed) in place in Massachusetts it could lead to serious problems, including major confusion over rights. 

Understanding Your Alternative Options in Massachusetts 

Massachusetts offers several established tools that can achieve many of the objectives associated with a Lady Bird deed. Each of these alternative options has certain advantages and disadvantages. The best choice will depend on your objectives. Here is an overview of your options:

• Revocable Living Trust: In Massachusetts, a real property owner can transfer real estate into a revocable trust while retaining full control as trustee. Upon death, the successor trustee distributes or manages the property without probate.
• Traditional Life Estate Deed: Massachusetts does recognize standard life estate. With these, the grantor retains a lifetime interest and names a remainder beneficiary. The remainder interest vests immediately. However, the life tenant cannot sell or encumber the property without the consent of the remainder holder.
• Joint Tenancy with Right of Survivorship: Adding a co-owner with survivorship rights allows property to pass automatically at death. The transfer avoids probate. The decision carries risk. The co-owner obtains a present ownership interest. Of course, that exposes the property to that person’s creditors and limits unilateral control by the original owner.
• Transfer Through a Will: A properly executed will directs disposition of real estate through probate. While it lacks probate avoidance, it allows precise control over who inherits the property and under what terms. In some cases, using a will to pass down real estate is an effective option. 

Call Our Boston Estate Planning Lawyer Today

At Fisher Law LLC, our Massachusetts estate planning lawyer is a solutions-driven advocate for people and families. If you have any questions about your estate planning options for a real property, please do not hesitate to contact us for a strictly confidential case evaluation. We provide estate planning services throughout the Greater Boston area.