The time and expense involved with probating a will are the driving forces behind many estate plans. Most people would naturally like their assets to pass to family members and beneficiaries with as little trouble and delay as possible. But what is the actual cost of probating a will in Massachusetts, and what should the average personal representative (formerly “executor”) expect to pay?
Is Probating a Will Expensive?
Generally speaking, no it is not. If someone has drafted a will, there is a good chance that they have consulted an attorney on how to avoid probate, e.g. by designating beneficiaries. Costs typically increase if there is no estate plan, since all assets will likely go through probate, and the personal representative must rely entirely on statutes absent the guidance of a will.
Of course costs also increase with the size of an estate, since a larger collection of assets generally indicates that the estate is more complex. Probating a single home, for example, is a lot easier than probating multiple real estate properties, brokerage and retirement accounts, and other interests in business. Costs from such estates increase not only from size, but indirectly by how long the probate process takes.
As we have just discussed, trying to calculate how much money probate will cost the estate is impossible without knowing specific details. And even knowing those details, the process is so long that there are many unforeseen obstacles that could arise along the way. Still, some organizations provide estimates on the average cost of probating a will. The American Association of Retired Persons has ventured that the costs typically range from 7-10% of the total gross estate, or averages around $1500-$2000. Other sources have suggested that the average cost of probate in Massachusetts might come in a little lower, at around 5%.
The cost of probate in Massachusetts can also be significantly reduced for estates totaling less than $25,000. For such estates there are streamlined procedures in place known as “Voluntary Administration.” In addition, the new Uniform Probate Code provides for expedited procedures to estates that are more or less insolvent, in an effort to save costs. The purposes of these enhanced probate procedures are to eliminate unnecessary expenses on those estates that receive the least benefit from, yet bear the heaviest burden for, the cost of probate.
How Can I Reduce the Costs of Probating the Estate?
While the best way to reduce the cost of probate is usually by drafting a will and other documents with an experienced Massachusetts estate planning attorney, there are also other preemptive steps a person can take. Structuring assets in a joint tenancy with right of survivorship (JTWROS) is one such method employed with homes, cars, and bank accounts. Massachusetts already provides for the automatic transfer of small amounts of these assets without such ownership structure. Filing beneficiary forms or transfer/payable on death forms for life insurance, retirement and bank accounts is yet another strategy.
After a death, however, there are relatively few options for reducing the cost of probate in Massachusetts. Apart from the expedited procedures described above, there is little chance of getting out of the cost of probate process. Typically, the personal representative will be a family member in order of priority set by the Uniform Probate Code, so he or she will already have an interest in keeping expenses at a minimum. Again, however, if there is any complexity to an estate, even if the estate is employing some of the streamlined procedures above it is very wise to consult a Massachusetts probate attorney at the beginning. Even if you learn from the consultation that you can do the procedures yourself, at least you will know what you’re getting into.
