Managing Tax Burdens In Advance
Many people do not realize that a vital component to successful estate planning is also engaging in careful tax planning. Massachusetts and federal estate taxes have high rates, and the government can take a significant portion of your wealth. However, consulting with an experienced attorney can help you plan, avoid, or deal with these potential tax consequences.
Experienced Legal Help For Tax Planning
Since 1984, the Boston tax planning lawyers of Cushing & Dolan, P.C., have provided legal solutions to minimize state and federal taxes, and plan for the smooth transfer of wealth to the next generation. We are here to help you develop an estate plan to effectively address your tax planning.
Many different types of assets are taken into account in the determination of the size of your taxable estate. Some of the assets that may be included in the value of your estate include:
- Bank accounts
- Investments
- Retirement accounts
- Jointly owned accounts
- Life insurance policies
- Real estate
- Other assets
If you are concerned about federal and state taxes, it is important to turn to a dedicated, professional estate tax planning lawyer to explore your options.
Understanding The One Big Beautiful Bill Act And Its Impact On Estate Tax Planning
The recently passed federal legislation known as the One Big Beautiful Bill Act brings long-term clarity to federal estate and gift tax planning. This law permanently prevents the previously scheduled reduction of the federal estate and gift tax exemption, setting the individual exemption at $15 million effective January 1, 2026, with annual adjustments for inflation. For married couples, this creates a substantially higher combined exemption, offering greater certainty for long-term planning.
Before this law was enacted, many high net worth individuals faced pressure to make large lifetime gifts due to concerns about an impending drop in the exemption amount. That uncertainty drove aggressive planning strategies designed to capture higher exemption levels before they expired. The One Big Beautiful Bill Act removes that immediate “use it or lose it” urgency by establishing a stable and generous exemption that is no longer subject to a scheduled sunset.
Although this change reduces short-term pressure, it does not diminish the importance of reviewing existing estate plans. Many plans were drafted in anticipation of lower exemption thresholds and may no longer be optimized under the new framework. Trust structures, gifting provisions and formula clauses based on outdated exemption levels may now operate differently than originally intended. Periodic review allows these elements to be adjusted to reflect current law and personal goals.
For high net worth clients, the permanence of a $15 million exemption presents an opportunity to refine long-term strategies with greater confidence. Planning can now focus more intentionally on asset protection, multigenerational transfers, charitable objectives and coordination with state-level estate taxes. In Massachusetts, where estate tax rules differ significantly from federal law, aligning state and federal planning remains a critical consideration.
The One Big Beautiful Bill Act provides welcome stability, but it does not eliminate the need for careful tax planning. Reviewing and updating estate plans under this new law is an important strategy to confirm that existing documents fully reflect a stable and generous federal exemption while continuing to support long term wealth transfer goals.
Reach Out To Our Firm
With offices in Boston, Waltham, Westborough, Woburn, and Braintree, we assist individuals, families, and businesses throughout Massachusetts, New Hampshire, Florida, Pennsylvania, and New York. Our lawyers provide comprehensive estate planning services, with an emphasis on anticipating tax implications. Contact us today by calling 888-759-5109 to schedule a free consultation to discuss your needs.