by Andrea Rutherford, Esq.
If you leave more than $1 million in assets, Massachusetts will collect estate tax before your assets can be transferred to your heirs. And it’s expensive. The rate maxes out at 16 pc and it’s applied to ALL of your assets – your home, your financial assets, your retirement savings, transfer-on-death accounts and even life insurance payouts.
Like other taxes, there are exemptions. Setting up your estate correctly can add as much as another $1 million in exemptions, bringing your total tax-free estate to $2 million. But the exemptions have to be built into your estate plan (in the form of a revocable or irrevocable trust) while you are still alive. This is an easy and inexpensive estate planning tool that will more than pay for itself after your death.
New Hampshire residents – no estate tax in your state. Maine and Vermont residents – your exemption is $5 million.
Our estate planning attorneys will be happy to explain tax planning trusts. The first consultation is always free of charge.
Estate Tax Planning can feel very overwhelming! Call us to talk about your estate taxes or estate planning in general. The first consultation is always free and our Attorneys are ready to assist you!