Shoffner & Associates
Counselors to Small Business and the Family
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Death And Taxes -- Still Certain |
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While the rest of the country breathes a sigh of relief as federal estate taxes gradually disappear, those of us who live in Massachusetts are not so lucky. The Massachusetts estate tax is back -- with a vengeance. The new Massachusetts estate tax law was enacted by the legislature to ensure that the Commonwealth will continue to collect estate taxes, even if the federal government does not. Anyone who dies after January 1, 2006 with a Massachusetts estate over $1,000,000 is subject to estate taxes. The new estate tax is not tied to the current federal estate tax laws. Now, Massachusetts estate taxes are based on the federal law in effect on December 31, 2000. That means the new Massachusetts estate tax is paid in addition to, not as a part of, the federal estate taxes. Here's What the New Estate Tax Can Cost You. A single person who dies with an estate of $2 million in 2006 may pay up to $99,600 to the Commonwealth of Massachusetts even though the federal estate tax would be zero. It is shocking how easy it is to build up an estate of $2 million with our super-high property values, and fully-loaded-employer-provided retirement plans. Add an insurance policy or two to that and -- oh no-- Massachusetts is ready to take a big piece of your estate. Worse yet, as the discrepancy between the Massachusetts estate tax exemption and the federal estate tax exemption increases, the Massachusetts estate tax increases. In 2009, a single person who dies in Massachusetts with an estate of $3.5 million will pay nothing to the federal government, but will have to pay the Commonwealth a tax of $229,200. Here's How We Can Help. There are many ways individuals, married couples, and nontraditional families can plan their estates to minimize -- or even eliminate -- the new Massachusetts estate tax. All it takes is a little time on your part and some expert analysis and drafting on our part. |
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To find out more about how you can make the most of your estate tax exemptions, just give us a call at 617-369-0111, or send an email to Law@ShoffnerAssociates.com. |
| 176 Newbury Street, Boston, Massachusetts |
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This publication, which may be considered advertising under the ethical rules of certain jurisdictions, is provided with the understanding that it does not constitute the rendering of legal advice or other professional advice by Shoffner & Associates or its attorneys. Copyright 2006 Freya Allen Shoffner. All rights reserved. Photographs by Darius Zayas |