Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Administering an estate in Massachusetts involves multiple costs that vary with the size and complexity of the estate. Consider a hypothetical estate with real estate valued at $400,000, bank accounts totaling $50,000, and personal belongings worth $10,000. The total estate value is $460,000. Below are the main factors that determine the total cost:
1. Probate Court Fees
The Probate and Family Court charges filing and service fees to open and close an estate. For a detailed fee schedule, see Massachusetts Probate and Family Court Fees. Typical fees range from $165 to $230.
2. Executor Compensation
A personal representative (executor) may receive “reasonable compensation” under MGL c. 190B, § 3-706. Courts examine the estate’s size and complexity. See MGL c.190B § 3-706.
3. Attorney Fees
Attorney fees vary by complexity and attorney rates. Fees may be hourly or flat and require Probate Court approval. Attorneys often bill between $200 to $400 per hour, depending on the region.
4. Bond or Surety Premiums
The court may require a surety bond to protect the estate. Under MGL c. 190B, § 3-303, the bond amount typically equals the estate’s value. Premiums range from 1% to 2% of the bond amount. See MGL c.190B § 3-303.
5. Appraisal and Inventory Costs
Professional appraisals ensure accurate asset valuation. A licensed appraiser may charge $200 to $500 per asset. Preparing and filing an inventory with the court may also incur filing fees.
6. Notice and Publication Costs
Massachusetts law requires notifying heirs and creditors. Publishing a notice in a local newspaper typically costs $100 to $300.
7. Accounting and Tax Preparation
Filing federal and state estate tax returns may require a CPA. Fees range from $500 to $2,000, depending on tax complexity.
8. Tax Liabilities
Massachusetts imposes an estate tax on estates exceeding $1,000,000. Rates are graduated up to 16%. For details, see Massachusetts Estate Tax. Federal estate tax may apply to larger estates.
9. Miscellaneous Administrative Costs
Other costs include postage, certified copies of documents, safe-keeping of property, and any required property maintenance or repairs.
Helpful Hints
- Gather all asset information early to estimate costs.
- Obtain multiple bids for appraisal and attorney services.
- Check if the court waives fees for small estates.
- Maintain detailed records of all expenditures.
- Consult a qualified attorney to clarify fee structures.