There is a saying about death and taxes being the only things that are certain in this world. Sadly, it is very true. Taxes do not end at one’s death either, as beneficiaries may have to deal with paying inheritance and estate taxes on anything that is passed on to them. Gifting property or other significant assets to beneficiaries is done with love and good intentions; however, if certain precautions are not taken when setting up an estate plan, whether one resides in Massachusetts or elsewhere, those items which are intended to be gifts may end up being more of a burden.
Thankfully, in the state of Massachusetts, most estates are not considered taxable. State law requires that an estate or asset be valued at over $1 million before it is taxable. Those that are taxable are subject to a tax of 15 to 25 percent, which is not a small chunk of change.
It may be possible for beneficiaries to avoid paying certain taxes simply by how an estate plan is created. Various trust options may be able to help with this. The attorneys at Albanese Law, LLC, can walk you through all of the options available and help you draft estate plans that fit your specific needs and goals.
Estate planning can be a challenging process as there are so many things to think about and consider. If certain steps are not taken, what beneficiaries are intended to receive and what they actually receive may be quite different. Massachusetts residents, when working on their estate plans, can seek assistance from experienced estate planning attorneys who will be able to make sure all of the desired and necessary protections are put in place so that assets and beneficiaries are protected from excessive taxation.