When you’re in financial need, news of an impending inheritance can be a real game-changer. Unfortunately, because most estates must go through the Massachusetts probate process, you may not see your funds for months or years. Thankfully, you have options.
Probate funding with Rockpoint Probate Funding gives you a cash advance against your pending inheritance. That means you can receive part of the estate before it clears probate. It doesn’t require a credit check or minimum income, and you owe nothing if your inheritance never comes through.
Before making your decision, you may wish to learn a little more about Massachusetts probate.
Does Massachusetts Require Probate?
Probate is the legal process for distributing a deceased person’s estate to creditors and beneficiaries. Massachusetts requires most estates to go through probate. However, the state permits several types of probate, some easier than others.
- Formal probate: Overseen by a judge, formal probate is typically needed for unclear or missing wills, minor or unknown heirs, or estates that don’t otherwise meet the criteria for informal probate.
- Late and limited formal probate: When probate proceedings have not begun within three years of death, the court may accept a petition to enter the will to formal probate or verify that a will doesn’t exist.
- Informal probate: Typically faster than formal probate, informal probate is for uncomplicated cases with an original will, an official death certificate, and heirs with known locations and identities. A magistrate rather than a judge administers informal probate.
- Voluntary administration: This streamlined process uses a small estate affidavit to distribute the assets of estates worth $25,000 or less (excluding the value of one vehicle) that don’t contain real property.
Can I Avoid Probate in Massachusetts?
Thoughtful estate planning can streamline the Massachusetts probate process. But you can’t skip it altogether unless the assets are not subject to probate. Non-probate assets include the following:
- Joint assets: Jointly-owned bank accounts, real estate, or other assets go automatically to the surviving owner.
- Accounts with named beneficiaries: Life insurance, IRAs, and 401(k)s with named beneficiaries can pass to the beneficiaries without involving the courts.
- Payable-on-death (POD) or transferable-on-death (TOD) assets: POD and TOD designations pass ownership directly to a beneficiary upon the property owner’s death.
- Living trusts: Assets in a living trust go automatically to the beneficiaries when the owner dies.
How Does Massachusetts Probate Work?
Massachusetts probate typically involves the following steps:
- Court filing: Probate begins with filing a court petition and the will in the county where the deceased person lived.
- Appointing an executor: The will typically names a personal representative (executor) to administer the estate. Otherwise, the court will appoint one.
- Posting notice: The personal representative publishes a notice of the proceedings in a local newspaper.
- Listing assets: The personal representative identifies, inventories, and values assets, hiring an appraiser if necessary.
- Settling debts: The personal representative pays creditors, taxes, and other debts.
- Distributing assets: The remaining assets go to the legal beneficiaries, and the court closes probate.
Even simple estates take four to six months to settle. Complicated or contested estates can take years to clear Massachusetts probate.
What Happens If There Is No Will?
If a person dies without a will, the Massachusetts laws of intestate succession govern the distribution of assets. That means the estate goes to the decedent’s closest relatives in the priority determined by the Massachusetts Uniform Probate Code.
For example, if someone dies with a spouse and children from that relationship, the spouse inherits the entire estate. If someone dies with a spouse, children from that relationship, and children from another relationship, the spouse inherits the first $100,000 of the estate and half the remaining balance. The rest goes to the children equally.
Other relatives, such as parents, siblings, and grandchildren, only receive a portion of the estate if there are no surviving family members with higher priority.
How Much Does Massachusetts Probate Cost?
Probate costs may reach 5% to 10% of the estate value (or more) but vary based on the following factors:
- The size of the estate
- The complexity of the estate
- The agreement or disagreement among heirs
- Whether anyone contests the will
- Whether an attorney works on the case
Common probate fees include the following:
- Probate court filing fees, including petitions, approval of a trustee, and filing wills for safekeeping
- Miscellaneous court fees, including copies, summonses, and recordings of proceedings
- Fees for professional services, including lawyers, accountants, and appraisers
- Executor compensation fees, which Massachusetts law requires to be reasonable
- Probate bonds, such as executor bonds, administrator bonds, and trustee bonds
Types of Massachusetts Probate
Understanding the various types of probate in Massachusetts is crucial for navigating the estate process effectively. The state recognizes different categories of probate, each tailored to specific scenarios. Formal probate, for example, is conducted under a judge’s oversight and is generally necessary for complex cases, such as those involving unclear wills or undisclosed heirs.
Conversely, informal probate is designed for simpler cases where all parties are known and an original will is available. This expedited process can save time and resources for the heirs involved. Lastly, there are limited and late formal probate options, which cater to unique situations where the typical probate timelines have been exceeded or there’s a need to validate a will that has not been processed.
Understanding Intestate Succession
Intestate succession laws come into play when an individual passes away without leaving a will. In Massachusetts, these laws dictate how a deceased person’s assets will be distributed among surviving relatives. For instance, if a person dies with a spouse and children, the spouse is entitled to the entire estate, reflecting the state’s priority system in asset distribution.
If additional relationships exist, such as children from a previous relationship, the distribution may differ, granting the spouse a fixed amount of $100,000 and sharing the remainder equally. This framework highlights the importance of having a clear estate plan to express an individual’s wishes and minimize potential disputes among heirs.
Cost Factors in Massachusetts Probate
Probate costs in Massachusetts can vary significantly based on several key factors, making it essential for heirs to be informed. Expenses can typically reach up to 5% to 10% of the estate’s value, particularly influenced by the size of the estate and the complexity of the case. Engaging an attorney, for example, may incur additional fees that can inflate overall costs.
Other common expenses include court filing fees, charges for professional services, and fees associated with executor compensation, which Massachusetts law mandates to be reasonable. Understanding these cost factors in advance can help heirs prepare financially and make informed decisions about the probate process as they manage their inheritance.
Probate Loans Explained
Probate loans, often referred to as cash advances, can provide financial relief to heirs waiting for their inheritance to clear probate. These financial products allow individuals to access a portion of their expected inheritance without needing to wait for the probate process to finalize, which can often be lengthy. Unlike traditional loans, probate loans do not require credit checks or monthly payments until the estate is resolved.
This can be particularly beneficial for heirs facing immediate financial needs, as it alleviates the stress of waiting for estate proceedings to conclude. The funding is secured against the anticipation of the inheritance, ensuring that heirs receive necessary funds without incurring additional debt if the inheritance does not materialize.
Can I Access My Inheritance Before It Clears Probate?
Heirs cannot typically access their inheritance without following the steps required by probate law. However, you have alternatives. Probate cash advances (also called inheritance cash advances) allow you to receive a percentage of your inheritance long before it clears probate. Because it is an advance on your portion only, it will not affect other heirs.
Are Probate Loans or Cash Advances Better?
Many heirs who can’t afford to wait for their inheritance take out loans. But what happens if your inheritance doesn’t clear for years — or ever? You’re still on the hook for the money you borrowed.
Probate cash advances from Rockpoint Probate Funding are different. They allow you to borrow against part of your pending inheritance without requiring you to use it as collateral. If the estate does not pay your share, you won’t be liable for paying it back.
Unlike traditional loans, you won’t have to make monthly payments or repay us once your funds clear. Instead, the estate will pay us directly and give you the remainder. Many people use the terms “probate loan” and “probate cash advance” interchangeably, so make sure you know what you are signing up for.
Get Your Cash Sooner With Rockpoint Probate Funding!
If you can’t afford to wait for your Massachusetts probate case to conclude, consider applying for a cash advance from Rockpoint Probate Funding. Contact us at (888) 263-8588 for more information. We can process your application and send your funds as soon as today!
