What Happens When an Estate Is Insolvent in Massachusetts?
When an estate owes more than it holds, Massachusetts pays the claims in 7MGL c. 190B § 3-805Verified Sep 23, 2026View source classes in statutory order, beginning with costs and expenses of administration.
An estate is insolvent when the claims against it exceed the assets available to pay them. Massachusetts then pays the claims in 7MGL c. 190B § 3-805Verified Sep 23, 2026View source classes, in the order its statute sets; the classes at the end of the order are the ones left unpaid when the money runs out.
1. Costs and expenses of administration; 2. Reasonable funeral expenses; 3. Debts and taxes with preference under federal law; 4. Reasonable and necessary medical/hospital expenses of last illness; 5. Debts and taxes with preference under Massachusetts law; 6. Debts owed to Division of Medical Assistance; 7. All other claimsMGL c. 190B § 3-805Verified Sep 23, 2026View source.
Massachusetts pays them in proportion to their amountsMGL c. 190B § 3-805(b)Verified Sep 23, 2026View source: each claim in the class receives the same share of what it is owed.
A personal representative is not personally liable for the decedent's debtsM.G.L. c. 190B, § 3-808(b)-(c)Verified Sep 22, 2026View source. A personal representative who pays a later class before an earlier class is paid in full is personally liableM.G.L. c. 190B, § 3-807(g), (e), (b)Verified Sep 22, 2026View source. Massachusetts's statutes state no rule on the personal representative's personal liability for distributing property to heirs while claims are unpaid.
Yes. A person named in a will who has not yet been appointed can decline the appointment, and an insolvent estate is a common reason to. In Massachusetts, the way to decline is a written renunciation filed with the courtM.G.L. c. 190B, § 3-203(c)Verified Sep 22, 2026View source.
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Learn moreForms for Settling an Estate in Massachusetts
Free forms for settling an estate in Massachusetts: probate petition, small estate affidavit, creditor notice and closing forms. Prepare each form.
Affidavit of Heirship
In Massachusetts, heirs put their identity on the land records with a recorded affidavit of facts affecting title that states who the heirs areG.L. c. 183, § 5AVerified Sep 24, 2026View source; once recorded it is admissible as evidence of the facts stated.
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Letter of Instruction
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Affidavit of Death
In Massachusetts, a surviving joint owner records the “Statement relating to titleM.G.L. c. 183, § 5AVerified Oct 26, 2026View source”.
Tools for Settling an Estate in Massachusetts
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How Much Can an Executor Charge?
Massachusetts pays executors reasonable compensationM.G.L. c. 190B § 3-719 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source, typically 2.2%Estimated from the 16 state statutes that set an executor fee schedule (median and interquartile range at this estate value)Verified Sep 8, 2026View source to 3.8%Estimated from the 16 state statutes that set an executor fee schedule (median and interquartile range at this estate value)Verified Sep 8, 2026View source of the estate.
Can I Self-File Probate?
Massachusetts has no statewide fill-in probate petition, so the opening petition is drafted as a legal pleading, and informal probate is availableM.G.L. c. 190B §§ 3-301, 3-307 (magistrate appoints without formal hearing)Verified Sep 8, 2026View source.
How Do I Get Letters Testamentary?
In Massachusetts, the Register of the Probate and Family Court issues Letters of Authority for Personal Representative once the Probate and Family Court Department appoints the personal representative; an informal (registrar) track is availableM.G.L. c. 190B §§ 3-301, 3-307 (magistrate appoints without formal hearing)Verified Sep 8, 2026View source.
What Are the Creditor Claim Deadlines?
In Massachusetts, creditors have 12 monthsM.G.L. c. 190B § 3-803Verified Sep 8, 2026View source from the date of death to present claims; late claims are barred.
How Do I Claim a Deceased Person's Unclaimed Property?
In Massachusetts, a deceased owner's unclaimed property is claimed from the Massachusetts State Treasurer, Unclaimed Property DivisionM.G.L. c. 200AVerified Aug 24, 2026View source.
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Massachusetts Estate Settlement Resources
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