If you are starting to plan your estate, it is likely that you will want to look into the taxes that may or not be applied to your estate at the end of your life. Many people make it their primary goal when planning their estate to minimize the gift and estate taxes that they will need to pay. This can be effectively done by being creative with your estate plan.
Therefore, if you want to create an estate plan that will benefit your beneficiaries to the maximum degree, it is a good idea to get familiar with the way that estate tax and gift tax work in the state of Massachusetts, and what tax exemptions you might be able to take advantage of.
What estate tax exemptions might I be eligible for in Massachusetts?
The vast majority of people in the state of Massachusetts are able to avoid estate tax altogether at the present moment. This is because the personal estate tax exemption is applicable to estate assets to the value of $5.49 million.
If your estate exceeds $5.49 million, there are ways that you can be creative in minimizing the applicable taxes. The marital deduction is a very effective way to do this. By leaving half of the assets to their spouse, a person can avoid paying tax on that portion of their estate. In this way, a person with an estate of $10 million could avoid tax by leaving $5 million to their spouse.
If you want to avoid estate taxes in the state of Massachusetts, you should look into a variety of strategies.