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The butterfly bush or Buddleia is technically a long-blooming shrub and often considered a sub-shrub because it dies back to the ground. It can be trained to look like a small tree, but it isn’t a tree. The shrub can grow to 6 to 8 feet high and 5 to 8 feet wide.

It will indeed shed its leaves in the fall, making the appear dead but it’s not; new leaves will arrive in spring. You do need to prune in early spring; this promotes vigorous new growth and flowering. 

We will add that the butterfly bush in considered an invasive now. It’s from China and it can indeed spread outside your yard into your neighbor’s yard so you really need to keep an eye on it. Google more about “butterfly bushes invasive” and learn more.

As far as your neighbor’s go:  This is not our area of expertise! Normally, the biggest issue is the danger of a falling limb and related safety issues (which don’t seem relevant here). We would go as far as to say that a neighbor could probably request removal of overhanging branches and roots to your boundary line (and it’s in their right to do so). However, if the branches and roots are on your property and errant leaves fall their way, that’s nature, folks!

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