A Massachusetts Deed of Residence is a real property deed that conveys a residence into a trust.
In addition to transferring a primary residence to a trust for ease of later change of ownership, and to eliminate probate or transfer of that asset, a deed of residence is important in estate planning, as it may shield the value of a residence from Massachusetts estate taxes upon the death of a residence owner.
Currently, Massachusetts provides an estate tax exemption of $1,000,000, meaning that an individual with an estate of less than this amount will not be obligated to pay Massachusetts estate taxes. However, if a couple owns assets (including real estate) valued in excess of $1,000,000, the exemption is not available and the surviving spouse may be responsible for paying significant taxes upon the passing of the other spouse.