Skilled Newton Estate Planning And Tax Law Attorney

You spent years building a home, career and savings in Newton. But rising property values and other assets can push your estate above Massachusetts’ $2 million estate tax threshold. Setting up a basic will may not address the tax impact or give your family the protection and control you want.

At Cushing & Dolan, P.C., our Newton estate planning attorney team can help with tax law issues. By providing a comprehensive plan, we help families plan around the Massachusetts estate tax, protect real estate and distribute assets to the next generation.

Massachusetts Estate Tax Planning For Newton Homeowners

Massachusetts imposes an estate tax when the value of an estate exceeds $2 million. Because this threshold is much lower than the federal estate tax exemption, estates that would not face federal estate tax may still owe taxes in the state. A few assets that often push Newton estates over the threshold line include:

• A primary residence, especially in Newton’s higher value neighborhoods
• Retirement accounts, brokerage holdings and life insurance payouts
• Rental property, a vacation home or a family business interest

It is crucial to have an accurate valuation of your assets to know if your family could be affected by the estate tax.

Trust Structures For Newton’s High Net Worth Families

High net worth families may use different types of trusts to protect assets, manage wealth and plan for future generations. Your options include:

• Revocable living trusts: Let you keep control of your assets while you are alive and may help your family avoid probate
• Irrevocable trusts: Transfer assets out of your ownership and may help protect wealth and reduce estate taxes
• Intentionally defective grantor trusts (IDGTs): Move future asset growth to beneficiaries while you continue paying income taxes on the trust assets
• Dynasty trusts: Preserve family wealth across multiple generations and may help reduce certain transfer taxes
• Directed trusts: Divide trust duties so different people can manage investments, distributions or other responsibilities

You can also set specific rules for when and how beneficiaries receive assets, including distributions tied to specific ages or milestones.

Wealth Transfer Strategies For High-Income Families

Our attorneys hold taxation LL.M. degrees and have CPA backgrounds, giving us both legal and tax perspectives on gifting, trust funding and family transfers. With that combined knowledge, we can build a coordinated plan for high-income Newton families that may include:

• Lifetime gifting: Give assets away during your lifetime to reduce the size of your taxable estate
• Charitable giving: Use charitable trusts or donor-advised funds to support causes and secure tax write-offs
• Family limited partnerships (FLPs): Transfer business or real estate interests to younger generations at a reduced tax value
• Intrafamily loans: Lend money to relatives at low, federally approved interest rates to transfer wealth tax-free

These strategies may help reduce estate taxes, preserve assets for beneficiaries and account for changes in your family or financial circumstances.

Schedule Your Newton Estate Planning Consultation Today

Cushing & Dolan, P.C., works with Newton families who want a plan built around real Massachusetts tax exposure, not guesswork. Reach out to our Newton office at 888-759-5109 or complete this form to review your legal options.