Understanding Massachusetts Probate Procedures for Paying Estate Expenses and Creditor Claims

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified probate attorney for advice tailored to your situation.

Detailed Answer

Under Massachusetts law, a personal representative (also known as an executor or administrator) must follow specific steps in probate to ensure all estate expenses and creditor claims are addressed before distributing assets to heirs. The key procedures are outlined in the Massachusetts Uniform Probate Code, found at Massachusetts General Laws Chapter 190B.

1. Appointment of Personal Representative

To begin, the court appoints a personal representative after the will is filed or an administrator is nominated if there is no will. See M.G.L. c. 190B, § 3-301 (link).

2. Notice to Creditors

Within 30 days of appointment, the representative must publish a notice to creditors in a local newspaper and mail notice to known creditors. This starts the claims period during which creditors may present their claims. See M.G.L. c. 190B, § 3-803 (link).

3. Inventory and Estate Valuation

The representative prepares and files an inventory of all estate assets with the probate court, typically within 90 days of appointment. Accurate valuation helps determine the funds available to pay debts and expenses. See M.G.L. c. 190B, § 3-906 (link).

4. Filing and Resolution of Claims

Creditors must file claims within the time specified (usually 6 months after first publication). The representative reviews each claim and either allows, partially allows, or disputes it. Disputed claims may require court approval or a hearing. See M.G.L. c. 190B, § 3-803(f) and § 3-904 (link).

5. Payment of Debts, Taxes, and Administrative Expenses

Once claims are allowed, the personal representative pays valid claims, funeral expenses, estate administration costs, and taxes. Priority rules under M.G.L. c. 190B, § 3-706 outline the order of payment, ensuring secured claims and expenses are satisfied first.

6. Final Account and Distribution

After all debts and expenses are paid, the representative files a final account with the court. The account shows all receipts, disbursements, and proposed distributions. Upon court approval, assets may be distributed to heirs or devisees. See M.G.L. c. 190B, § 3-907 (link).

Helpful Hints

• Act promptly: Meet statutory deadlines for notices and inventories to avoid delays or personal liability.
• Keep thorough records: Document all communications with creditors and receipts for expenses.
• Consult experts: Use appraisers for real estate or collectibles to ensure accurate valuations.
• Maintain transparency: Share the estate’s status with heirs, reducing the risk of disputes.
• Review tax obligations: State and federal estate taxes may apply depending on estate size.