Planning ahead for the future of your estate is important as it relates to your own retirement as well as what you hope to leave behind to your loved ones. When a state also assigns a state-level estate tax to your situation, you might need to make adjustments or consider advanced strategies to accomplish your goals. Finding the right professional to help you with that is key.
Understanding State Estate Tax in Massachusetts
Certain states levy their own estate tax, which can have implications for your estate planning purposes. You may be thinking about the federal exemption, which is quite high, without considering the impact of state estate taxes. The current $1 million estate tax exemption in Massachusetts has not been adjusted for inflation since the year 2006. This can have impacts for heirs of middle class people who have seen their retirement accounts and houses appreciate over time.
Strategies for Estate Planning in Massachusetts
Your estate could suddenly become subject to Massachusetts state estate taxes even if you have a relatively modest home. If the $1 million exemption amount were currently adjusted for inflation, it would be much closer to $1.5 million. This means that it is important to think about how you can do estate planning and prepare for these potential issues well in advance.
The support of an estate attorney is instrumental in helping you determine how this fits into your estate planning strategy and forming a relationship with a knowledgeable estate lawyer can make it easier to have somewhere to turn to ask questions if and when necessary.
