How to Navigate Massachusetts Probate for Complex & Unique Assets

When it comes to estates that include high-value or unique assets, such as real estate, businesses, or valuable collections, navigating the Massachusetts probate process becomes even more challenging. Estates with these kinds of assets require careful attention to detail and the expertise of experienced legal professionals such as the Attorneys at Lane, Lane & Kelly, LLP located in Braintree, Massachusetts.

What is Massachusetts Probate?

Probate is the legal process of transferring property and ownership from the decedent to their legal heirs or named beneficiaries (in a Will) after someone dies. Only assets titled in the individual name of the decedent pass through probate. These are typically assets such as real estate, any tangible property such as furniture, cars, family heirlooms, and often times bank accounts or life insurance policies that do not name a pay-on-death (POD) beneficiary. For a full overview of the Massachusetts Probate Process, please read our detailed legal blog post here.

Many estates however have very unique assets that can require special care while working through the probate process. Some complex assets that our law firm has dealt with in our probate experience include:

• Real estate holdings: Multiple properties, second homes, or investment/rental properties. If the decedent dies with multiple pieces of property titled solely in their name, it can prolong the probate process significantly and introduce hurdles when it comes to selling the property. 
• Business ownership: Privately held businesses, partnerships, or an ownership interest in a company. This is most commonly seen when the Owner of Managing Member of a Limited Liability Company (LLC) dies without a succession plan in place.
• Valuable collections: Art, antiques, jewelry, coin collections, or other collectibles that may need specialized appraisals. Our office has seen things like tool collections, baseball card collections, coin collections, and the like. 
• Investment portfolios: High-value stocks, bonds, or retirement accounts.

The probate process involves inventorying and appraising these assets, which can be difficult and time-consuming. For example, appraising something like art or an antique collection often requires expert valuations, and businesses or business interests may need to be valued by a forensic accountant or tax specialist. When it comes to real estate, if there is no Will left by the decedent that grants the power to sell property, then all legal heirs will need to sign and approve a “License to Sell” that grants the Personal Representative the ability to move forward and sell the real estate once properly appraised. This adds an additional step to an already lengthy process for the Personal Representative. It is the fiduciary responsibility of the Personal Representative to sell all real estate and all other probate assets, and properly distribute the earnings to the legal heirs or named beneficiaries in the Will. When high-value or unique assets are owned individually by the decedent, navigating the probate process in Massachusetts can feel like a full-time job for the Personal Representative.

The Role of a Probate Attorney

When dealing with complex assets, working with an experienced probate attorney is crucial. They can help:

• Ensure accurate appraisals: For unique or high-value assets, accurate appraisals are key to avoiding tax issues and ensuring that the estate receives the maximum amount possible. Most probate attorneys already have relationships with trusted appraisal companies as well which can help to speed this process along.
• Handle legal complexities: Assets like businesses may require legal arrangements to ensure the proper transfer of ownership, particularly if the deceased was a sole proprietor or partner in a company. A probate attorney can also help with the facilitation of the sale of any business interest held at death.
• Guide the Personal Representative: Personal Representatives of complex estates often need assistance with completing legal documents and filings with the proper Probate Court, settling debts, and distributing assets in accordance with the Will or the laws of Massachusetts Intestacy if there is no Will. For a thorough overview of Massachusetts Intestacy laws and what happens if you die without a Will, please read our full legal blog here. When someone passes away with a substantial amount of assets, it is not uncommon for a family to request that their Probate Attorney be named the Personal Representative, so they have the authority to make these decisions, act in the best interest of the estate, and to try to move the probate process along as quickly as possible.

The Value of Incorporating a Trust into your Estate Plan

For individuals with high-value assets, creating a trust can offer significant benefits. First and foremost, any assets that are held in trust when the decedent dies will pass outside of probate. This is a tremendous advantage for the family as it will save significant time and money. It will also grant the family total privacy, as all assets and the distribution of those assets are done outside of the public domain. Whereas going through probate allows all filings and information to become public information, since all filings with the Probate Court become a matter of public record. For a full overview of the advantages to incorporating a trust into your estate plan and the different types of trusts, please read our full legal blog post here.

A Real Life Example

To put this advantage into perspective, let’s use a real-life example. Let’s say Patrick Probate passes away on July 1. Patrick dies with no Will, no trust, and no estate plan whatsoever. When Patrick dies, he owns his primary residence in Braintree, along with three investment properties that he owns outright in Quincy. Patrick also owns a 401k with no pay-on-death beneficiary designation.

Because Patrick owned these properties and his 401k in his name individually, they must all pass through probate. Patrick has four siblings that all have priority of appointment to act as Personal Representative (PR) based on Massachusetts Intestacy Laws, so one of Patrick’s brothers that also lives in Braintree ultimately takes on the responsibility. Since Patrick’s other siblings live across the United States, it takes over a month alone just to gather all of the necessary signatures required to file probate with the court. After the filing is accepted, he then receives his “Letters of Authority” from the probate court which grant him the power to make decisions on behalf of the estate. One of which is to close out the 401k which he successfully does within a week or so. Next, Patrick’s brother, the PR, hires a company to appraise all four properties. This process takes another month. Once he gathers the appraisals, he then needs to get more signatures from each sibling in order to complete the “License to Sell” petition that will grant him the power to list the properties. This requires another few weeks.

Once received, he then lists the properties and sells them, which takes another month. It has taken the PR roughly 4 months already (which is on the shorter side compared to the standard probate duration) just to file, inventory, appraise, and sell the real estate, and to close the 401k account. During that period, interest rates rose 50 basis points (0.50%), and housing prices have declined as a result of the market, and from selling the house during the winter season in Massachusetts. As a result, the estate received far less for the properties compared to their value when Patrick Probate died. Not to mention, the family had to pay the carrying expenses of owning the properties during those 4 months, including gas, electric, maintenance, and of course taxes.

Let’s compare this result to Tina Trust. Tina also died on July 1 with the exact same circumstances as Patrick Probate. She had a 401k, a primary residence, and three investment properties, all owned by her individually. Before Tina died, Tina met with the experienced Attorneys at Lane, Lane & Kelly who first advised her to name someone as her pay-on-death beneficiary for her 401k. Following the meeting Tina immediately designated her sister as the beneficiary. Tina also worked with her Attorney to create a Revocable Trust. She then deeded all of her property (primary residence and the three investment properties) into the trust. This allowed Tina to retain full control over her properties during her lifetime. In the trust, Tina named her sister as the successor Trustee, and named all four of her siblings as beneficiaries of the trust assets.

Accordingly, when Tina died on July 1, her sister was immediately transferred the full value of the 401k retirement account as a result of the pay-on-death designation, and she proceeded to cash it out within days. Her sister, as Trustee, hired a real estate broker that same week to sell all four properties. Acting as Trustee, she has sole discretion to coordinate the sale. Within a month, all four properties were successfully sold, and the proceeds were immediately distributed in equal shares to all four siblings. Since Tina had setup a trust, her family was able to sell the properties immediately following her death, with no court approval or signatures required. This ended up saving the family thousands in legal fees, and ended up maximizing the value of the real estate since they were able to sell in August instead of November, weren’t subject to the same interest rate increase that Patrick Probate’s family dealt with, and they only had to pay the carrying expenses of the properties for about a month before finalizing each sale.

These real-life examples illustrate just how valuable it is to plan ahead when it comes to estate planning. In the end, creating an estate plan can save you and your loved ones thousands, if not hundreds of thousands of dollars compared to the costs and delays that can occur during the probate process. This is especially true when you or a loved one has high value assets such as real estate or other unique assets that can take time and special consideration in order to sell for the right value.

Trust Lane, Lane & Kelly for all of your Probate and Estate Planning Needs

Probating a high-value or complex estate in Massachusetts requires expertise in both probate law and asset management. Whether you are the Personal Representative of such an estate, or planning for your own estate plan to help streamline things for your family, working with a skilled probate attorney is essential to ensure that all assets are properly accounted for, appraised correctly, and distributed to the right people. Proper estate planning in advance can simplify this process and protect your legacy for future generations.

With over 80 years of experience serving Braintree and the entire South Shore of Massachusetts, Lane, Lane & Kelly has extensive knowledge when it comes to probating estates of all sizes, and providing comprehensive estate plans. When it comes to saying goodbye to a loved one, you want an Attorney that you can trust to manage your estate during a very difficult time. Family is at the heart of everything that we do. Don’t trust just anyone, trust Lane, Lane & Kelly, the Best Law Firm on the South Shore as voted on in the 2024 South Shore Community Choice Awards.

This blog is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By reading this blog you understand that there is no attorney client relationship between you and Lane, Lane & Kelly, LLP.