Law Office of Andrea W. McCarthy

11/08/2025

For anyone selling a home in Massachusetts as of November 1, 2025, DOR has issued a new regulation, 830 CMR 62B.2.4. This is a withholding requirement which applies when the gross sales price is $1,000,000 or more for NON-RESIDENT sellers (individual or business). Every Seller is now required to complete a Transferor Certification form (resident or nonresident) and provide to the closing attorney. Within 10 days of closing a return has to be submitted to the Mass DOR even if no tax is required to be withheld. This return Form NRW (Nonresidential Real Estate Withholding), Transferer Certifcation form, copy of the settlement statement and amount withheld, unless exempt. Tax rate depends on who the Seller is and whether they elect the alternative wihtholding calculation but ranges from 4-8%.

Settlement agents are required to withhold taxes on sales and will be penalized if this is not timely completed. An added burden and cost to all involved in real estate transactions.

The following is a summary of Sellers who will be exempt from the withholding requirements, but only if they provide a Transferor’s Certification:

A seller who is a full-year Massachusetts resident since at least January 1 in the year of the sale and who intends to live in Massachusetts after the sale.

A seller who is a Pass-Through Entity such as a partnership, s-corporation, an estate, or a trust not taxed at the entity level. Note that disregarded entities, such as singlemember LLCs and pass-through trusts are not considered a Pass-Through Entity. Instead the “seller” for the purposes of withholding is the beneficial owner.

A seller which is an estate of a resident decedent or a resident trust (meaning the settlor was an inhabitant of Massachusetts at the time the trust was created or during the year the property is sold).

A seller which is a corporation with a continuing Massachusetts business presence (meaning that they filed a Massachusetts tax return for the prior year and maintain a place of business in Massachusetts at the time of the transfer), provided the corporation represents that it is subject to the requirement to report the transfer on its Massachusetts tax return for the current year and it will so report, and that it is not a sale of all or substantially all of the corporation’s assets in Massachusetts.

04/12/2025

If your're buying or selling get a lawyer involved as early as possible in the process. Our office represents both Buyers and Sellers and can walk you through the process to make the whole experience easier. It's also a great time to have your estate plan reviewed. Initial consultation is always free. Give us a call at 508-254-2366

Is now a good time to buy a house? It's a question many aspiring homeowners struggle to answer in today’s shifting market.

04/12/2025

It;s that time of year and preparing for the move to college can be an anxious time. If any parents would like a Health Care Proxy/ Power of Attorney/HIPAA documents for your now or soon to be adult child (18) before they head off to college (or other) my office is offering to take care of this for you at NO CHARGE. Please just reach out by email ([email protected]) or phone (508-254-2366).

10/18/2024

Homestead update:

Norfolk County Register of Deeds William P. O’Donnell informs homeowners about the recent increase in the amount of the homestead exemption and the importance of filing for Homestead Protection.

In August, state legislators passed Session Law 2024, c. 150, s. 51 (an Act relative to the Affordable Homes Act), which, among other benefits, increased the amount of protection offered by a written declaration of homestead from $500,000 to $1,000,000.

“The increase in the amount of the homestead exemption applies retroactively to any valid homestead that is currently on record at the Registry of Deeds and to any future recorded Homesteads,” noted Norfolk County Register of Deeds William P. O’Donnell. “This means homeowners who have a valid homestead on record do not need to file a new homestead to gain the benefit of the recent increase.”

“If you own a home, and it is your primary residence, you have an automatic homestead exemption of $125,000. However, if you file a Declaration of Homestead at the Registry of Deeds, the exemption increases to $1,000,000. The Homestead Law provides a homeowner with limited protection against the forced sale of their primary residence to satisfy unsecured debt up to $1,000,000 if they have filed. This is especially important when you consider that for most of us, a home is our most valuable asset. Consumers should take steps to protect that asset,” noted Norfolk County Register of Deeds William P. O’Donnell.

Another feature of the Homestead Law is the allowance for the filing of an Elderly Homestead Declaration, which defines an elder as a person who is 62 years of age or older and provides protection of $1,000,000 for each qualified person. This applies to a primary home even if held in a trust

A Declaration of Homestead also protects the sale proceeds if the home is sold for up to one year after the date of the sale or on the date when a new home is purchased with the proceeds, whichever comes first. Additionally, if the home is damaged by a fire, for example, the insurance proceeds are protected for two years after the date of the fire or on the date when the home is reconstructed or a new home is purchased, whichever is earlier.

While the Homestead statute provides important protections for homeowners, it is important to note that certain debts are exempt from protection under the Homestead Act. These include federal, state, and local tax liens, as well as mortgages contracted for the purchase of a primary home and nursing home liens. Most other mortgages, debts, and encumbrances existing prior to the filing of the Declaration of Homestead, along with probate court executions for spousal and child support, are also not covered under the Homestead Protection Statute.

Declarations of Homestead are recorded at the Registry of Deeds for a state-imposed fee of $36.00.

10/20/2023

On October 4, 2023, Massachusetts Governor signed a tax relief package into law, making changes to how the Massachusetts estate tax is calculated, as well as several other changes.

This is effective for the estates of decedents dying after January 1, 2023. The new law increases the Massachusetts asset threshold at which the estate tax is imposed from $1 million to $2 million and eliminates the so-called “estate tax cliff.” Previously, Massachusetts taxed Massachusetts estates with assets in excess of $1 million, calculating the tax due on the entire value of the estate. Under this new law only assets in excess of the $2 million threshold are subject to the state-level estate tax at a rate starting at 7.2% and increasing with the size of the estate up to 16%. The Federal estate tax exemption is currently $12,920,000 (but scheduled to reduce by half on 1/1/26 without legislative action).

Additionally, if a resident dies owning real estate or tangible personal property outside of the Massachusetts, any estate tax owed will be reduced proportionately by the value of such property. Massachusetts continues its punitive computation for non residents by treating the entire estate of a non resident as if it were taxable by Massachusetts and then applying a formula which significantly limits the benefit of the new exemption. There are ways through proper estate planning to avoid this situation.

Now is the time to have your estate plan reviewed especially for a married couple in which trust plannning is required to maximize the use of the exclusion for each spouse. My office offers free estate plan review.

08/08/2023

Preparing for the move to college can be an anxious time. If any parents would like a Health Care Proxy/ Power of Attorney/HIPAA documents for your now or soon to be adult child (18) before they head off to college (or other) my office is offering to take care of this for you at NO CHARGE. Please just reach out by email ([email protected]) or phone (508-254-2366).

08/08/2023

If your're buying or selling get a lawyer involved as early as possible in the process. Our office represents both Buyers and Sellers and can walk you through the process to make the whole experience easier. It's also a great time to have your estate plan reviewed. Initial consultation is always free. Give us a call at 508-254-2366

Buy now, or wait? It's a question many prospective homeowners are struggling to answer in today’s shifting housing market.

05/20/2022

Register O'Donnell of the Norfolk Registry Promotes Massachusetts Homestead Act. If you would like me to check to see if you have a homestead on your property reach out. See his message below on how important this is.

O’Donnell noted, “If you own a home, and it is your primary residence, you have an automatic homestead exemption of $125,000. However, if you file a Declaration of Homestead at the Registry of Deeds, the exemption increases to $500,000. The Homestead law provides a homeowner with limited protection against the forced sale of their primary residence to satisfy unsecured debt up to $500,000 if they have filed. This is especially important when you consider that for most of us, a home is our most valuable asset. Consumers should take steps to protect that asset.”

Another feature of the Homestead law is the allowance for the filing of an Elderly Homestead Declaration, which defines an elder as a person who is 62 years of age or older and provides protection of $500,000 for each qualified person.

The Register further noted, “Back in March of 2011, the Homestead law was updated so that a valid Homestead cannot be terminated when refinancing a mortgage. Other changes that took place back in 2011 state that a Homestead can provide protections for a primary home even if it is held in a trust. The definition of a primary residence was also expanded to include a manufactured or mobile home.”

While the Homestead statute provides important protections for homeowners, it is important to note there are certain debts that are exempted from protection under the Homestead Act. These include federal, state and local tax liens, as well as mortgages contracted for the purchase of a primary home and nursing home liens. Most other mortgages, debts, and encumbrances existing prior to the filing of the Declaration of Homestead, along with probate court executions for spousal and child support, are also not covered under the Homestead protection statute.

Declarations of Homestead are recorded at the Registry of Deeds for a state imposed fee of $36.00

05/10/2022

It's that time of year again....Spring is a great time for buying and selling homes. Get a lawyer involved as early as possible in the process. Our office represents both Buyers and Sellers and can walk you through the process to make the whole experience easier. It's also a great time to have your estate plan reviewed. Initial consultation is always free. Give us a call at 508-254-2366