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Life Estates in Massachusetts

One way of determining who gets your real estate is to deed the property while retaining the right to use and occupy it during your lifetime.

​This is called a "life estate." Many people use this tool as a way of transferring property outside of probate, and/or ensuring that a specific asset remains in the family.


The goal of a life estate is similar to the goal of a trust- you retain an interest during your lifetime but the ultimate recipient is the beneficiary. A life estate is cheaper and easier than a trust, but may have unintended consequences.

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What is a Life Estate and How is it Created

A life estate is the right for your lifetime to use and occupy the real property. As the life tenant, you also retain the right to receive a portion of the value of the property if it is sold.

​Selling or mortgaging the property cannot be done without the consent of the person ultimately deeded the property (known as a "remainderman").


This interest is created by executing a life estate deed that transfers the property to yourself during your life with the remainder to the person or people you intend to give it to. This will create both their remainder interest and your life estate interest.

The deed is essentially the same as a deed you would prepare to sell your home, except that it contains a sentence at the end reserving a life estate for the owners who are transferring it (usually you and your spouse).

Life Estates and Planning for Assisted Living

One reason people use life estates is to protect their home from the costs of assisted living. MassHealth/Medicaid will help pay for assisted living if you are financially qualified. Financially qualified means you do not have the assets to pay for care yourself. Removing a valuable asset like real property from your "countable assets" helps reduce those assets and speed up your eligibility for help with the cost of care.

One way people accomplish this goal is through an irrevocable trust specifically designed to meet Medicaid standards.  Another is through the use of a life estate deed. It is important to remember that MassHealth will still assign some value to your life estate when determining what assets you have available to pay for care.

How large a percentage of the property's value this will be depends on your age, and is determined by specific tables used by MassHealth. The point is there is a value, which may delay or hinder your eligibility for benefits.

Life Estates as an Estate Planning Tool

A life estate will allow you to avoid probate with respect to the property. It will not take the property out of your estate for estate tax purposes.

It is also somewhat of a blunt instrument when compared to an irrevocable trust. If you deed property and retain a life estate, title automatically passes to the remainderman upon your death. That is the full extent to which you can control the distribution of the property.

This can create unintended complications. If you deed the property to your child and your child dies before you, that remainder interest is a part of his or her estate. That means it will be distributed according to their will or, if they do not have a will, the intestacy laws of the state where they live.

This could mean an extended probate process for their heirs. It could also mean the property passes to someone outside of your family. Neither of these is likely your intent.

Your remainderman's interest in the property is also subject to their creditors. If they have a judgment against them, a lien could be placed against the property. Similarly, their interest in the property could be subject to division if they are going through a divorce.

A trust, in contrast, allows you to be more specific and flexible. If you place your home in a trust with your child as a beneficiary, you can specify what should happen if the child dies before you, for example.

Consider All Estate Planning Tools

Transferring your interest in your home through a life estate deed is just one of the estate planning tools available to you. It is important to consult with an estate planning attorney to review your full family and financial situation. It may be that a life estate is the right tool to accomplish your goals. It may be, however, that a combination of wills and trusts, with or without a life estate deed, is what you really need to achieve the result you intend.

How Our Estate Planning Lawyers Can Help

Estate Planning Jenna Ordway slnlaw MA
Estate Plan Jenna Ordway slnlaw MA
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Estate Planning in Massachusetts
We are ready to help.  We understand this can be a difficult issue to tackle, so we have designed our process to make it as easy as possible for you to get the plan in place that protects you and your family and accomplishes your goals.  You can use the button below to schedule a free information call, or simply give us a call at  781-784-2322.
Schedule a Free Information Call

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  • Home
  • Employment Law
    • Guide To Employment Law Content
    • Advice for Employers >
      • Hiring Independent Contractors in Massachusetts
      • Termination Best Practices
      • Workplace Discrimination Employer Guide
      • Employee Handbook >
        • Employee Handbook Basics
      • Paid Family Leave and Your Small Business
      • Overtime Law for Employers
      • Employee Complaints About Pay
      • Employee Non Competes
    • Advice for Employees >
      • Discrimination in the Workplace
      • Sexual Harassment at Work >
        • Sexual Harassment Resources
        • Sexual Harassment in a Small Business
        • Constructive Discharge
        • Sexual Harassment and Non Disclosure Agreements
        • Sexual Harassment and Remote Work
        • Sexual Harassment Case Studies
      • Massachusetts Paid Family Leave
      • Non Compete Agreements >
        • Are non competes enforceable
        • Massachusetts Non Compete Act
        • Pre 2018 Massachusetts Non Competes
        • Non Compete Case Studies
        • Can I Avoid My Non Compete
      • Independent Contractor Law >
        • Independent Contractor Test
        • Working As Independent Contractor
        • Independent Contractor Case Studies
        • Independent Contractor Roadmap
      • Wage and Hour Laws >
        • Massachusetts Minimum Wage
        • Overtime Law >
          • Overtime Exemptions
          • Employee Travel Time
          • Federal or State Overtime Law
        • Overtime Law Case Studies
        • Massachusetts Wage Act >
          • Payment of Commissions
          • Wage Deductions
          • Late Payment of Wages
          • Paid Time Off
        • Wage Act Case Studies
        • What Are Your Wage and Hour Rights
      • Employment Contracts in Massachusetts >
        • Restrictive Covenants
        • Promissory Estoppel
      • Employment Termination >
        • Severance Pay
        • Should I Accept a Severance?
      • Do I Have a Case?
    • Unemployment in Massachusetts >
      • Unemployment Overpayment
      • Pandemic Unemployment
      • Unemployment Case Studies
  • Estate Planning
    • Guide To Estate Planning Content
    • Legacy Protection >
      • Why You Need an Estate Plan >
        • Why You Don't Have an Estate Plan
      • Massachusetts Estate Tax
      • Asset Protection Trusts
      • Children with Special Needs
      • Planning for Assisted Living
    • Is Your Will Enough >
      • Special Circumstances >
        • Estate Planning for Blended Families
        • Estate Planning for a Non Citizen Spouse
        • Estate Planning and Divorce
        • Estate Planning for Small Business Owners
      • Surviving Spouse's Share
      • Disinheriting Children Massachusetts
      • Updating Your Estate Plan
    • Estate Planning Documents >
      • What is a Trust >
        • Revocable trust
        • Irrevocable trust
        • Irrevocable vs revocable trust
      • Last Will and Testament
      • Durable Power of Attorney
      • Massachusetts Health Care Proxy
      • Life Estates in Massachusetts
      • Massachusetts Pet Trust
    • Probate Process >
      • Non Probate Assets
  • Business Law
    • Guide To Business Law Content
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
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