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Understanding Your Elder Law & Estate Planning Options
Knowledgeable Inheritance And Estate Tax Planning Lawyer
Most estates are not taxable estates. At the state level, Massachusetts law stipulates that a decedent has to have up to $1 million before being taxed (or $2 million combined for married couples.) If the person goes a dollar over, he or she is taxed on that full $1 million and one dollar at a level of 8 percent to 16 percent.
At the federal level, the law has changed recently to stipulate $11.4 million per spouse/individual before being taxed at a rate ranging up to 40 percent. It is a misnomer that people pay taxes in most cases. At the estate planning law firm of Albanese Law, LLC, we can help you understand whether you need to worry about estate and inheritance taxes. If you do, we can offer a broad range of services to help minimize or eliminate estate taxes.
Use Of Estate Planning Tools To Reduce Taxes
When you transfer assets for fair market value while you are alive, it creates a capital gains tax issue. Even if a parent or other family member gives you a house for $1 while you are alive, if you go to sell that house later, you will be responsible for a large capital gains tax.
There are options to limit liability. Estate planning devices such as irrevocable life insurance trusts, family limited partnerships, charitable remainder trusts, grantor retained annuity trusts and other tools can help remove assets from the taxable estate. If you have business holders, substantial properties or other assets, you should consult with a lawyer to determine what you need to do to protect your assets.
Let An Estate Planning Attorney Help You
Contact us for more information regarding inheritance and estate taxes in Massachusetts. Arrange a complimentary consultation with an experienced Boston lawyer. Call the Milton office of Albanese Law, LLC, to schedule an appointment at 866-591-4451.