Minimizing Estate Taxes in Massachusetts

In addition to helping clients identify their distribution wishes, we also help clients minimize their estate tax burden so that more assets will be available to their beneficiaries.

Few people have an estate the size of Prince, who left behind an estimated $300 million when he died in April of 2016. But his lack of estate planning will ultimately cost his heirs possibly more than half that amount in estate tax payments. That is a rather heavy, and completely unnecessary, burden for his heirs to bear.

Massachusetts has a well-defined estate tax applicable exclusion amount of $1 million, which is well below the federal level of nearly $11.18 million.  Estate planning can work within these existing thresholds, in order to minimize the amount of estate taxes that will be due. {QUESTION – does this amount include insurance policies?  If so, mention this fact, as many people might believe that their estate will not be over $1 million not considering insurance}

There are a number of ways to lawfully reduce or minimize inheritance taxes either by using certain types of living trusts, instituting a gifting strategy, and even using something more complex involving “family limited partnerships.” There are often government “look back” periods that can interfere with any strategy. So, in order to effectively minimize estate taxes, any strategy should be implemented sooner rather than later.

Take Advantage of Our Free Family Legal Planning

We offer a free initial consultation so that we can learn about your circumstances and asset distribution wishes.  Then, we can discuss with you the possible options for providing a comprehensive estate plan that will best effect your wishes.

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