Do Retirement Accounts Go Through Probate In Massachusetts?

For most people in Massachusetts, their retirement savings (401(K), IRA, Roth IRA, etc.) are amongst their most valuable assets. You may wish to leave the proceeds of your retirement account to a spouse, child, grandchild, or other loved one as part of your estate plan. This raises an important question: Do retirement accounts go through probate? In Massachusetts, the answer is “no”—as long as the proper beneficiary designations are in place. Here, our Boston estate planning lawyer provides a more detailed explanation of the key things to know about retirement accounts.

Understanding Probate in Massachusetts 

To start, it is useful to know what probate is and why it matters in Massachusetts. Broadly explained, probate is the legal process by which a court oversees the transfer of property after death. Assets that are titled in the decedent’s name alone (with no beneficiary or co-owner) typically pass through probate. A probate court in the Commonwealth will confirm the validity of the will, settle debts, and authorize the distribution of property. Massachusetts has adopted the Uniform Probate Code (UPC), which simplifies procedure but still requires time, filings, and expense. For that reason, avoiding probate is often highly desirable. 

Retirement Accounts Can Often Skip Probate 

Retirement accounts (including IRAs, 401(k)s, and 403(b)s) are generally not probate assets. Instead, these accounts pass directly to the named beneficiary under federal and state law. The custodian of the account transfers ownership once a valid death certificate and required paperwork are submitted. In other words, you can often bypass the probate process. 

How do you do it? The key is proper beneficiary designation. If the account lists a spouse, child, trust, or other person, probate does not apply. However, if the designation is missing, outdated, or invalid, the account may revert to the estate. In that scenario, it becomes subject to probate administration in Massachusetts. 

What to Know About Spousal Rights in Massachusetts 

Massachusetts law provides significant protection for surviving spouses. While beneficiary designations generally control retirement accounts, federal law (particularly ERISA) requires spousal consent if a non-spouse is named for certain employer-sponsored plans. Without that consent, the surviving spouse may have a legal claim to the account, regardless of what the form says. It is imperative that your estate plan consider statutory spousal rights under Massachusetts law and/or federal law if you are married. A Boston estate planning lawyer can help. 

Call Our Boston Estate Planning Lawyer for Retirement Savings Today

At Fisher Law LLC, our Massachusetts estate planning lawyer has the experience that families can trust. If you have any questions about 401(k)s, IRAs, or retirement planning more broadly, we can help. Please do not hesitate to contact us today for a fully confidential consultation. Our team is devoted to providing clients with truly personalized advocacy. With an office in Norwood, we serve clients in Boston and throughout all of the surrounding region.

Source:

law.cornell.edu/wex/uniform_probate_code