Probate Avoidance in Massachusetts

Probate avoidance techniques can be a complex area of law, especially when considering both state and federal laws. Here's a brief overview of how each technique can be accomplished in Massachusetts, along with relevant laws:

1. Set Up Payable-on-Death (POD) Accounts:

   • The Paperwork: You need to complete a form provided by your bank or financial institution.
   • Adding a POD Designation to a Joint Account: This is typically done at the bank and may require consent from all account holders.
   • Choosing Beneficiaries: You can name anyone as a beneficiary.
   • If a Beneficiary Dies Before You Do: You should update the beneficiary designation.
   • If You Change Your Mind: You can change the beneficiary anytime.
   • Claiming the Money: Beneficiaries will need to present a death certificate and identification.
   • Law: Governed by Massachusetts General Laws (M.G.L.) Chapter 167D, Section 6.

2. Name a Beneficiary for Your Retirement Accounts:

   • Choosing a Beneficiary: Done through the account provider.
   • Required Minimum Distributions: Governed by federal law, particularly the Internal Revenue Code.

3. Name a Beneficiary for Your Stocks and Bonds:

   • Transfer-on-Death Registration: You can register securities in transfer-on-death (TOD) form.
   • Registration of Government Bonds/Notes: This follows federal regulations.

4. Name a Beneficiary for Your Vehicles:

   • Transfer-on-Death Registration: Not all states allow TOD registration for vehicles, and Massachusetts does not currently have a TOD vehicle registration system.
   • Joint Ownership With Right of Survivorship: Ownership passes automatically to the surviving owner.
   • Special Transfer Procedures for Vehicles: Follow Massachusetts Registry of Motor Vehicles procedures.

5. Name a Beneficiary for Your Real Estate:

   • TOD Deed: Massachusetts does not currently recognize transfer-on-death deeds for real estate.
   • Joint Ownership: Real estate can be owned jointly with rights of survivorship.

6. Hold Property in Joint Ownership:

   • Joint Tenancy and Tenancy by the Entirety: These are recognized in Massachusetts and avoid probate.
   • Community Property: Massachusetts is not a community property state.

7. Create a Living Trust:

   • Avoids Probate: Property in a living trust does not go through probate.
   • Advantages: Includes privacy and potentially quicker distribution.
   • Why You Still Need a Will: To cover any assets not placed in the trust.
   • Taxes and Record Keeping: Follow federal and state tax laws.
   • Amending/Revoking a Trust: Governed by the terms of the trust and Massachusetts law.

8. Take Advantage of Special Procedures for Small Estates:

   • Qualifications for Small Estates: In Massachusetts, estates valued at $25,000 or less, excluding the value of a car, may qualify.
   • Claiming Wages with an Affidavit: Possible for small amounts.
   • Simplified Court Procedures: Massachusetts has a simplified process for small estates.

Each of these strategies involves specific legal processes and documents. It's important to consult with a legal professional for personalized advice and to ensure compliance with current laws and regulations. Keep in mind this overview is not legal advice but a general guide to the probate avoidance techniques in Massachusetts.