When a loved one passes away, it is likely that you will need to go through the probate process, which includes paying any taxes owed in regard to the estate. The current Massachusetts estate law is applicable to estates owned by decadents who passed away in 2006 or later. When the value of an estate is $1,000,000 or lower, this amount is excluded from being taxable. For example, when an estate in Massachusetts is worth $1,100,000, only $100,000 of the estate will be taxable.
There are many different types of estate taxes, but there are also several tax exemptions which the estate in question might be eligible for. Therefore if you are leading the probate process for a love one’s estate, it is important that you understand what exceptions and taxes are relevant.
Massachusetts estate taxes
The Internal Revenue Code determines the amount of taxes owed to the state of Massachusetts after the death of the holder of the estate.
Credits for state death taxes
If a certain amount in taxes has already been paid to one or multiple states, the estate may be eligible for credits. This means that the estate does not need to pay as many taxes on the estate.
How is the payment filed after the death of the decedent?
The personal representative of the decedent should file a Massachusetts Estate Tax Return when any estate is over the value of $1,000,000.
If you are responsible for going through the probate process in regard to the estate of a loved one in Massachusetts, it is important to know what taxes must be paid and the possible exceptions you may be eligible for.