PROBATE & TRUST ADMINISTRATION

Administration of an estate of a decedent depends upon which estate planning choices were made during his or her lifetime.

If nothing were done, it would be an intestate estate. The state would determine who would receive the non-joint and non-contract property. For all assets titled in the decedent’s name a court procedure called probate is necessary to change title from the decedent to the new beneficiary.

If the decedent had a will – but no trust – the court involvement of probate is also required to change title from the decedent’s name to the beneficiaries named in the will.

If the decedent had assets already placed into his trust (a funded or living trust) title must also be changed to reflect the new successor trustee. However, this change of title does not require court involvement, and is quicker and less costly. There are many other issues to address such as obtaining a new tax identification number for the trust, obtaining date of death values of assets – including appraisal of real estate, possible preparation of estate tax returns (state and/or federal), etc.

Massachusetts automatically places an estate tax lien upon all Massachusetts real estate of the decedent. To clear title something must be recorded to release the estate tax lien. Likewise, if all of a Massachusetts decedent’s assets amount to one million dollars ($1,000,000) a Massachusetts estate tax return must be prepared and filed. Currenlty there is not estate tax for 2010, however, in 2011 if all of the decedent’s assets total on million dollars ($1,000,000) a U. S. estate tax return must be prepared and filed.

The loss of a loved one is often a time of stress. One of the first things you can do to minimize this stress is to  Contact  Attorney Merrill J. Atkins to schedule a complimentary consultation. Estate Administration may take up to a year and a half.  Settling a Trust after a death may take as long as one year.  Administering the trust of a decedent, depending on the terms of the instrument, may go on for many years.  The process involves things like inventorying assets, appraising assets, changing title, accounting and paying taxes. You  may not realize there are a number of time sensitive choices available, as well as traps for the unwary.