Page 18 THE EVERETT ADVOCATE – FRiDAy, JunE 20, 2025 Masshealth Notice of Intent to Place a Lien T he Commonwealth of Massachusetts, pursuant to regulations at 130 CMR, Section 515.012(A), will place a lien on a MassHealth recipient’s home by fi ling the lien at the registry of deeds for the applicable county where the recipient’s home is located. The situation arises where an individual is in a nursing home and MassHealth is paying for the nursing home care. The lien is designed to protect MassHealth in the event the home was sold. If the house were to be sold, MassHealth would have to be reimbursed first for MassHealth benefits paid to the individual residing in the nursing home. MassHealth will also have to be notifi ed if the nursing home resident dies and has a probate estate. If the home is part of the probate estate, then MassHealth also has the right to recover against that asset. For those individuals that had previously transferred their home to their children with a reserved life estate or for those individuals that had previously transferred their home to an irrevocable trust, MassHealth will not be able to recover from that asset as the asset itself is simply not part of the probate estate any longer. Prior to nursing home placement, by reserving a life estate, the homeowner/life tenant will still be able to claim an abatement on the real estate tax bill so long as he or she is still residing in the home as his or her principal residence. In the irrevocable trust context, so long as one of the Trustees resides in the home and the trust instrument provides for the right of the Trustee/ Settlor to occupy, enjoy and possess the real estate that is held in the trust, the real estate tax exemption will also be allowed. The entire trust instrument need not be recorded. Only a Trust Certifi cate gets recorded, which sets forth the name of the Trust, the date of the Trust, the Successor Trustees and certain administrative provisions. Therefore, if you transfer your principal residence into an irrevocable trust, you need not also reserve a life estate in the deed going into the trust. You’ll still be entitled to the abatement. MassHealth regulations authorize the placement of a lien against a nursing resident’s home if it has determined that he or she cannot reasonably be expected to be discharged from the nursing home or other medical institution and return home; and none of the following relatives lives in the home: A spouse; A child under the age of 21, or a blind or permanently and totally disabled child; or A sibling who has an equity interest in the property and has been living in the home for at least one year before the nursing home resident’s admission to the nursing home or other medical facility. If the nursing home resident is subsequently discharged from the nursing home and returns home after the lien is placed, MassHealth will then release the lien. If the home is sold during the nursing home resident’s lifetime and the home is not in an irrevocable trust (i.e. only a life estate was reserved), there would be a repayment to MassHealth from the nursing home resident’s share of the net sales proceeds for the cost of all medical services provided on or after April 1, 1995. If a life estate is involved, the portion of the net sales proceeds attributable to the life tenant (based upon life expectancy tables) would have to be repaid to MassHealth. In this situation, we are assuming that the life tenant is also the nursing home resident. One must give some serious thought as to whether or not it is a good idea to sell the home in such a situation. It might be best if at all possible to hold onto the property until the nursing home resident dies. Repayment of the cost of medical services may be deferred while any of the following individuals are still lawfully living in the property: A sibling who has been residing in the property for at least one year immediately prior to the nursing home resident’s admission into the nursing home or other medical institution; A son or daughter who: Has been living on the property for at least 2 years immediately before the nursing home resident’s admission into the nursing home or other medical institution; Establishes to the satisfaction of MassHealth that he or she provided care that permitted the nursing home resident to live at home during the two– year period before institutionalization; and Has lived lawfully in the property on a continual basis while the nursing home resident has been in the nursing home or other medical institution. The principal residence is often a great asset to place into a Medicaid-qualifying trust in order to avoid future MassHealth liens down the road. They off er great fl exibility, asset protection features, spendthrift features, successor Trustee provisions in order to protect against mental incapacity issues, protection of minor grandchildren in the event of a premature death of a child, etc. Meanwhile, the right to occupy, enjoy and possess the residence still exists so that no one can ever take that right away from you until the day you die. You must first satisfy the 5-year look back period meaning 5 years must go by from the date the trust was created and funded with the principal residence before the residence will not be considered a countable asset. In that situation, there would be no so-called “disqualifying transfer”. Joseph D. Cataldo is an estate planning/elder law attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. THE HOUSE AND SENATE: Beacon Hill Roll Call records local senators’ votes on roll calls from recent sessions. There were no roll calls in the House or Senate last week. HOUSING PRODUCTION (S 3) Senate 40-0, approved an amendment that would commission a series of studies by the Executive Offi ce of Housing and Livable Communities to explore new tools to jumpstart stalled housing projects. The studies would include a potential construction sales tax exemption for multifamily housing developments delayed by federal tariff s or economic volatility; the use of third-party inspectors to fasttrack permitting for manufactured, off -site and multifamily housing; and whether aff ordable housing projects should be exempt from Proposition 2½ tax levy limits -- a factor that often discourages local approvals. “Together, these provisions are aimed at cutting red tape, lowering costs and accelerating the production of housing—particularly in high-need, geographically isolated regions like the Cape and Islands,” said amendment sponsor Sen. Julian Cyr (D-Truro). “Massachusetts was averaging 30,000 new homes annually as recently as the 1980s, when our population was much smaller. That number currently sits at about half, despite the increased need. The amendment passed unanimously … in a great show of bipartisan support.” (A “Yes” vote is for the amendment.) Sen. Sal DiDomenico Yes SCIENTIFIC RESEARCH (S 3) Senate 39-0, approved an amendment that would establish a Scientifi c Research Fund to provide research grants in the fi elds of science, medicine, public health, mental health and other biological or behavioral areas. Amendment supporters said the amendment would provide at the state level the investments in scientific advancement that previously had been provided at the federal level by the National Institute of Health. “Some of the best educational and research institutions in the world are located right here in Massachusetts, and their globally signifi cant innovations drive our state and regional economies,” said amendment sponsor Sen. Becca Rausch (D-Needham). “This Scientifi c Research Fund off ers a critical opportunity for state government to support science and step up for research funding infrastructure as the federal government steps away. I am proud and grateful that this amendment passed the Senate by unanimous vote, showing that scientifi c inquiry and the pursuit of knowledge are, and always should be, nonpartisan.” (A “Yes” vote is for the amendment.) Sen. Sal DiDomenico Yes $800,000 FOR BOYS AND GIRLS CLUBS (S 3) Senate 39-0, approved an amendment increasing funding for Boys and Girls Clubs by $800,000 (from $2.2 million to $3 million.) “This funding will support the Boys and Girls Club’s mission of assuring that success is within reach of every young person by providing a safe environment and social, academic and health services that club members may not otherwise receive,” said amendment sponsor Sen. Edward Kennedy (D-Lowell). (A “Yes” vote is for the $800,000.) Sen. Sal DiDomenico Yes ALSO UP ON BEACON HILL SALES TAX HOLIDAY (S 2530 and H 4220) – The House and Senate approved measures designating Saturday, August 9 and Sunday, August 10 as a sales tax holiday weekend for the Bay State, allowing consumers to buy most products that cost under $2,500 BEACON | SEE PAGE 19
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