Use of Voluntary Administration
Voluntary administration serves as a streamlined method for managing small estates, particularly when transferring automobiles, recovering the last Social Security check, negotiating tax refunds, and accessing small bank deposits. Notably, a spouse can transfer an automobile without resorting to voluntary administration, as stipulated in G.L. c. 90D, § 15A.
This process can also apply to estates that are substantial enough to incur estate taxes, provided that the probate estate consists solely of personal property with a total value not exceeding $25,000, exclusive of any motor vehicle. Under the Massachusetts Uniform Probate Code (MUPC), the determination of whether the decedent died with or without a will is no longer relevant for voluntary administration eligibility. To qualify, the following criteria must be met as outlined in G.L. c. 190B, § 3-1201:
- The decedent must have been a Massachusetts resident and died in the county where the probate is filed.
- The probate estate must consist entirely of personal property valued at no more than $25,000, excluding one motor vehicle.
- At least thirty days must have passed since the decedent’s death.
- The petitioner for voluntary administration must qualify as an interested person, as defined by G.L. c. 190B, § 1-201(24).
- No petition for the appointment of a personal representative should be pending in the court of the decedent’s county.
Consequently, voluntary administration is unavailable if:
- The decedent owned any real estate solely in their name.
- The total value of personal property exceeds $25,000.
- There is an unliquidated tort claim involved.
It’s essential to remember that only probate assets owned individually by the decedent count toward the $25,000 limit. Non-probate assets, such as retirement accounts with designated beneficiaries or payable-on-death accounts, are excluded from this calculation. Automobiles are likewise excluded.
Filing for Voluntary Administration
To initiate voluntary administration, you must prepare and file the necessary documents with the Probate and Family Court, including:
- A voluntary administration statement (Form MPC 170).
- A death certificate.
- An affidavit regarding the cause of death (Form MPC 475).
- If applicable, an affidavit of domicile (Form MPC 485).
Practice Note: Always download the latest versions of court forms from Massachusetts Probate and Family Court Forms. Using outdated forms may delay the administration process.
The Process of Administration
Filing a voluntary administration statement does not equate to an official court appointment. The authority of a voluntary personal representative is limited by law. Upon presenting a duly attested voluntary administration statement and providing the necessary documentation, the voluntary personal representative can:
- Collect payment for any debts owed.
- Receive personal property listed in the administration statement.
- Surrender any listed policies, notes, or other instruments.
- Discharge liabilities of debtors unless a written demand is made by a formally appointed personal representative at the time of payment or delivery (G.L. c. 190B, § 3-1201).
The voluntary personal representative must first settle the expenses associated with the decedent’s funeral, last illness, necessary administration costs (excluding fees for their services), and other specified debts as outlined in G.L. c. 190B, § 3-805. Importantly, a voluntary personal representative does not serve as an appointed fiduciary and is not obligated to formally close the estate.
4. Other Considerations
A voluntary personal representative may need to file a Massachusetts estate tax return and subsequently file a lien release with the registry of deeds for any jointly owned real estate. Copies of the voluntary administration statement are essential for transferring automobile title (if G.L. c. 90D, § 15A does not apply), accessing bank account proceeds, or cashing Social Security or tax refund checks.
Advantages of Voluntary Administration
There are several benefits to opting for voluntary administration:
- It avoids the delays typically associated with formal probate proceedings.
- No bond is required.
- No inventory of assets is necessary.
- The probate process can be both initiated and concluded in a single filing.
Disadvantages of Voluntary Administration
However, there are notable disadvantages to consider:
- There is no official appointment by a magistrate or judge.
- The court may disallow informal administration if the decedent has an unliquidated cause of action.
- There is no capacity to bring a wrongful death action.
In summary, while voluntary administration offers a simpler alternative for managing small estates, it comes with specific limitations and conditions. For further assistance in navigating this process, consider consulting with a probate attorney who can provide tailored advice based on your circumstances.
