The Massachusetts Estate Tax Lien on Real Property

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Estate Tax LienIn Massachusetts, real property of a decedent has an estate tax lien assessed that will exist for ten years. So, to sell real property from an estate within ten years, the Department of Revenue needs to release the lien. Additionally, Massachusetts has an estate tax exemption of $1,000,000.00. This exemption amount plays an important role in determining the release of the tax lien. Accordingly, the executor will have to complete the following tasks:

  • Complete an Inventory of Assets to determine the gross value of the entire estate using date-of-death values.
  • Determine if the gross value of the estate exceeds the estate tax exemption amount of $1,000,000.00.

Once the executor completes valuing the estate, the executor can move on releasing the estate tax lien.

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Update

In my annual update, I mentioned the partnership with Patreon to run a monthly subscription model. I scrapped that partnership because the integration didn’t go well. Instead of spending the bulk of my time fixing technical issues with a third party, I opted to spend the time to provide new content. As a result, the content will remain free. 

The new articles I am working on now are the following: 

  • The Massachusetts Tax Lien on Decedent’s Real Estate. 
  • Beware of Sibling Beneficiaries.  

Hopeful for Improvement in 2022

I thank all the supporters of The Common Executor for visiting during a turbulent year in 2021. In my absence, while administering my Mother’s estate, The Common Executor continued to grow. Although the growth may be due in part to the continued pandemic, I still appreciate the support The Common Executor receives from followers and visitors.

In 2021, I once again put aside posting to administer my Mother’s estate. Additionally, I had to take on odd jobs to handle increased expenses to run the blog as well as living expenses while handling the estate. However, the estate administration is winding down and I will be posting regularly in 2022.

Amazingly, The Common Executor enjoyed additional growth in visitors as well as revenues through the amazon affiliation in my absence. I thought for sure I would lose some support, but it never happened. The silver lining from 2021 is that I have new content to provide relating to probate avoidance. As a tease, it’s not as easy as I originally thought.

The Year in Review

In 2021, traffic increased by 3,943 visitors and views, which is lower than the increase in 2020. Additionally, revenue from the Amazon Affiliation remained steady and grew slightly from 2020. Obviously, the slower growth was due to my absence and lack of active participation in the blog.

Plans for Next Year

In 2022, changes will occur. Unfortunately, due to higher costs to run the blog, the new content will not be free. I will be partnering with Patreon to run a monthly subscription model for a minimal amount yet determined. I am not looking to make a killing, just enough to cover costs. All the original content will remain free except for some beneficiary related articles.

On a final note, I will continue to update the original content as well as provide new content related to my Mother’s estate. Although I expect to lose some traffic due to the new subscription model, I am still hopeful that 2022 will be a year of continued growth.

Top Posts in 2021

In 2021, the top posts were somewhat different than previous years. The top posts for 2020 are as follows:

That’s it. Let’s hope for a much better year in 2022.

 

Let’s Hope for a Better Year

Let's hope for a better yearThank you to all the followers and visitors of The Common Executor for visiting during a miserable year in 2020. Since the Common Executor provides information about estate administration, the blog enjoyed explosive traffic growth in 2020 due to the deadly pandemic spreading throughout the world.

On a personal note, I put aside posting articles in 2020 because of the illness and eventual death of my Mother. However, throughout this miserable year, I still attended to the blog and responded to questions asked by visitors.

Through it all, the Common Executor had a sensational year in growth and revenues that provided a slight silver lining to a heart-breaking year. As I am currently handling my Mother’s estate, I won’t be posting often. However, after settling the estate, I will have new material to post. In my second estate settlement, the posts will be about probate avoidance.

The Year in Review

In 2020, traffic increased by 8733 visitors and views nearly tripled. Additionally, as the pandemic continues to claim lives, I expect traffic to continue to grow at least through the first six months of 2021.

Additionally, revenue from the Amazon Affiliation nearly doubled in 2020 as more visitors bought books on estate administration than random gifts in the holiday season.

Finally, the poll of the year asked, “If asked, would you agree to serve as executor for an estate?” The results were as follows:

  • 46% selected “Depends on person asking and the life they led”.
  • 22% replied “I would consider it an honor”.
  • 17% replied “Only if I could review the estate plan before accepting”.
  • 10% selected “I don’t want the responsibility”.
  • 3% replied “I wouldn’t have the time”.
  • 2% replied “I don’t possess the necessary skills”.

Most encouraging about this poll is that over 60% of the respondents would accept only if certain considerations were met. The testator would need to be a person of character, or at least, invite the prospective executor to review the estate plan. The rest of the respondents gave an honest response ranging from accepting to serve without conditions to reasons why they wouldn’t accept. Based on the results, I like the way people are starting to think about estate planning and estate settlement. Hopefully, the Common Executor had something to do with the results.

Plans for Next Year

In 2021, I will begin anew with content from my current estate administration, which was set up to avoid probate. So, the new content will provide information on how well probate avoidance works and is a much better option than a formal probate procedure.

On a final note, although the blog enjoyed success due to unfortunate circumstances, let’s hope 2021 returns to normal at some point during the year. I would gladly give up traffic and revenue to return to a healthy, vibrant world.

Top Posts in 2020

In 2020, the top posts were somewhat different than previous years. I suspect the corona virus had something to do with this change. The top posts for 2020 are as follows:

That’s it. Let’s hope for a much better year in 2021.

Happy New Year from the Common Executor

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Happy New YearThank you to all the followers and visitors of The Common Executor for keeping the blog relevant in 2019. In 2019, the blog had a mediocre year because of low visitor interaction resulting in only a few posts. Additionally, at times, important life events occurred which stalled efforts to reach goals set for 2019.  Nevertheless, the blog still nearly reached the 2018 level providing a silver lining to a lackluster year and a motivation to get this blog back on a growth path in 2020.

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The Testator-Executor Relationship and the Estate Plan

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testator-executor relationshipEssentially, an amicable and collaborative testator-executor relationship is an important element of an estate plan. In many common estates, the testator-executor relationship is simple: the testator creates the estate plan, and within that plan, appoints an executor to execute it. Generally, in this realm, testators will create their estate plans and expect the chosen executor to execute it without question. This type of planning, however, puts executors in a bind if the estate plan proves to be disastrous. Additionally, many named executors fail to understand that they can refuse to serve as executor as mentioned in the article, Can I Opt-Out from Serving as Executor? As a result, named executors feel they have no recourse and remain exposed to a possible turbulent estate administration. To protect themselves, named executors should approach their testators and forge a collaborative relationship before accepting an offer to serve.
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Neglecting Estate Obligations While Avoiding Probate

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estate obligationsAvoiding probate as a strategy and fulfilling your estate obligations can work together if planned properly. Although avoiding probate is a preferred estate planning strategy, the strategy will fail if your plan overlooks taxes and debts. Therefore, while planning, you must account for all taxes and debts of the estate or unintended consequences may result.

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How a Future Executor Should Prepare for an Estate Administration

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prepare for an estate administration

Essentially, a future executor should prepare for an estate administration while the testator is still alive. By reviewing the estate plan with the testator, the future executor will understand the wishes of the testator. Additionally, depending on the level of knowledge the future executor possesses on estate planning, correcting embedded mistakes in the estate plan is possible. Regardless, at the very minimum, knowing the basic details of the estate plan and the wishes of the testator may be enough. If the future executor has a higher understanding of estate planning, then perhaps an extensive review is possible. Either way, preparing for an estate administration with the testator is an important step towards a smooth estate administration.

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Appointing Multiple Executors to Handle Your Estate

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appointing multiple executorsIn common estates, appointing multiple executors happens regularly. There are many reasons for this occurrence such as sparing feelings of family or lack of confidence in the surviving spouse. Regardless of the reason, using multiple executors can be beneficial to an estate or disastrous to an estate. There are valid reasons to use multiple executors for a common estate, but not many. Unfortunately, those planning their estates tend to overlook essential factors in selecting executors. As a result, they appoint executors for the wrong reasons causing unintended consequences for the estate. So, before appointing multiple executors, those planning their estates must consider the essential factors in selecting executors.

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