Probate is the legal process through which a deceased person’s assets are validated and distributed under court supervision. In Massachusetts, probate can be time-consuming, costly, and public, which is why many families use smart planning tools to help their loved ones avoid it.
Why People Want to Avoid Probate
Probate can involve:
- Delays — taking many months before heirs can access assets
- Costs — court fees and legal expenses that reduce what beneficiaries receive
- Public Records — probate filings and asset lists become part of the public record
- Family Stress — the process can be emotionally taxing for loved ones during a difficult time
Fortunately, there are several legally-recognized options in Massachusetts that help bypass the probate process altogether.
1. Create a Revocable Living Trust
A revocable living trust is one of the most effective probate-avoidance tools because assets titled in the trust bypass probate entirely. You still own and control the assets during your lifetime, and upon your death, the successor trustee distributes them to beneficiaries per your instructions, without court involvement.
Tip: It’s essential that assets are actually transferred into the trust during your lifetime — a trust document on its own won’t avoid probate if nothing is retitled into it.
2. Use Beneficiary Designations
Certain financial assets allow you to name a beneficiary. These pass directly to your chosen person when you die, skipping probate:
- Retirement accounts (IRAs, 401(k)s, etc.)
- Life insurance policies
- Payable-on-death (POD) bank accounts
- Transfer-on-death (TOD) brokerage or investment accounts
Action item: Be sure to regularly update beneficiary designations after major life events (marriage, divorce, births, deaths) so they reflect your current wishes.
3. Joint Ownership with Rights of Survivorship
Holding property jointly with someone else — such as a spouse — with rights of survivorship means that when one owner dies, the asset automatically transfers to the surviving owner. Common forms include:
- Joint tenancy with right of survivorship
- Tenancy by the entirety (available to married couples in Massachusetts)
This strategy works for real estate, bank accounts, and other titled property, but be mindful: adding another owner gives that person access and control over the asset while you’re alive.
4. Gift Assets During Your Lifetime
Gifting assets before you die removes them from your probate estate altogether. In Massachusetts (and under federal rules), you can make annual tax-free gifts up to certain limits, which helps reduce the size of your probatable estate over time.
This can be a thoughtful way to see your beneficiaries enjoy gifts while you’re still living, though it may not suit everyone’s financial needs.
5. Utilize Small Estate Procedures
If an estate is modest in value, Massachusetts offers simplified procedures that are faster and less formal than full probate. For example, personal property under a certain threshold may qualify for a streamlined process that greatly reduces cost and court involvement.
Final Thoughts
Avoiding probate doesn’t mean avoiding planning. Each strategy has benefits and trade-offs depending on your family situation, the types of assets you own, and your financial goals. For many Massachusetts residents, combining tools — like a trust with updated beneficiary designations — offers peace of mind and a smoother transfer of wealth.
If you’re thinking about probate avoidance, talk with Falco and Associates P.C. and we can tailor a plan that fits your unique circumstances.
