The Bankruptcy Court for the District of Massachusetts recently issued an interesting decision for those using trusts to hold title to real estate. Judge Feeney, the author of In re: Rodriques, declared a Massachusetts Homestead valid though title was held by a recorded revocable living trust.
Before the Rodriques decision, it was widely accepted that even if the party residing in the property was both a Trustee and a beneficiary of a self-settled trust, the party could not avail himself or herself of a Massachusetts Homestead. The theory had been that the interest of a beneficiary was personal property and not real estate. Thus, such personal property interest was not capable of Homestead protection.
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