When closing an estate, some states that use a formal probate process, allow for an informal closing for common estates. These states simplified the probate process for estates that are straightforward; not complicated or contested. Fortunately, Massachusetts is one of those states. In Massachusetts, closing an estate using the simplified probate process involves the following tasks:

• Complete a final Inventory of Assets.
• Using the Inventory of Assets in the final accounting, complete the final accounting.
• Under cover of an assent form, send copies of the Inventory of Assets and the final accounting to each beneficiary.
• After receiving the signed assent forms from each beneficiary, the executor must sign the form called Account (MPC853). The signed Account form, with the original Inventory of Assets and final accounting attached, essentially closes the estate.
• Make the final distribution to the beneficiaries.

In Massachusetts, the simplified probate process allows straightforward, common estates to avoid the probate court when closing an estate. Instead, the approval of the Inventory of Assets and final accounting from all the beneficiaries informally closes the estate.

Closing an Estate and the Final Accounting

In the article Completing the Preliminary Tasks to Close the Estate, my attorney sent me three schedules to complete the final accounting for the estate. These three schedules make up the final accounting for Massachusetts estates. The three schedules consist of the following:

• Schedule A – Schedule A accounts for all of the income of the estate. The opening entry in this schedule is the total value from the Inventory of Assets. Other types of income may include tax refunds, insurance credits, rebates, and any credit card reimbursements.
• Schedule B – Schedule B accounts for all of the expenses of the estate. The schedule combines administrative expenses, payments of debt, partial distributions, and the final distribution. In addition, a reserve fund used to pay final expenses of the estate is also considered an expense. 
• Schedule C – Schedule C is the remaining balance of the estate. In common estates, the balance should equal zero. Basically, the total on Schedule A must equal the total on Schedule B. The result produces a zero balance on Schedule C. 

Moreover, filling in these schedules with the correct values is a collaborative effort. At times, throughout an estate administration, there are legal matters that the attorney must handle. If these matters include transactions that produce income or expenses for the estate, the attorney should enter those values on the appropriate schedule. So, if there are mistakes in the accounting, the attorney will step in to help find any discrepancies, if needed.  

Once the final accounting balances, the attorney typically continues with the rest of the closing process mentioned above. At this point, the executor can only anxiously wait for the beneficiaries approval. 

The Informal Closing of an Estate

Although an estate may close informally, the probate court may still request information at a later date. Therefore, the executor should hold on to the original documents related to the informal closing. In addition, the executor should keep supporting documents used in producing the final accounting. So, if an executor follows the advice discussed in the article Set up the Home Office, staying organized is an easy task.

The State Specific Probate Process and the Final Accounting

Obviously, this article is specific only to Massachusetts estates. However, there are other states that have adopted a similar simplified probate process. So, closing an estate in a state other than Massachusetts may have a similar probate process. Regardless, most estates going through a probate process will involve a final accounting. 

The final accounting is the process that reveals to the beneficiaries how the executor handled the money and property of the estate. If the executor properly tracked and recorded all the income and expenses of the estate, the final accounting would show the executor handled the estate well. Otherwise, the executor would be accountable to the beneficiaries. 

Did you find this article helpful? Do you agree that an informal closing in a formal probate process is a simple process? Share your thoughts or questions in the comment area below.

Recommended Reading

The Executor’s Guide – The Executor’s Guide provides a listing of all states and the probate code, if any, each state uses.