You work your entire life to save and have enough money to comfortably retire - ideally leaving something for your loved ones when you pass away. During your life, you pay all kinds of taxes: income taxes, property taxes, sales taxes, and so on. And, at the end, the government even wants to tax you on the assets you have left at your death.

This is known as the estate tax, sometimes called the inheritance tax or death tax. The best way to protect your assets and your family’s future from excessive taxation is to hire an attorney who specializes in tax planning law. At Dotchin Law, we can help you reduce, if not entirely avoid, the federal and state estate tax burden.

HOW DOES THE ESTATE TAX WORK?

The estate tax is totally separate from federal income taxes and is paid on the net value of all your assets owned at your death. However, there are fairly sizable exemptions to the federal estate tax, so it’s primarily high net-worth individuals and families who are affected.

That said, the federal estate tax is a whopping 40%, so we’re talking about potentially massive sums of money being owed by one’s heirs. And, that bill must be paid to the IRS within 9 months of the decedent’s death.

Massachusetts also has its own estate tax on estates valued at over $2,000,000.

EXEMPTIONS TO THE ESTATE TAX

The federal estate tax exemption for individuals is currently $13.99 million.

The federal estate tax exemption for married couples is currently $27.98 million.

So, unless your estate is valued at more than those numbers, you don’t have to worry about the federal estate tax at this time.

But, the Massachusetts estate tax exemption is significantly lower than the federal. So, while you may not have to pay federal estate taxes, you may owe estate taxes to the Commonwealth of Massachusetts. In Massachusetts, our estate tax exemption is $2 million. While that number may seem high, keep in mind that it includes the total value of all your assets including your home, retirement accounts, and life insurance policies.

For those who are affected, there are numerous estate planning strategies available that can greatly reduce the amount owed. We can advise you on the best options for your family.

ADVANCED ESTATE PLANNING STRATEGIES

Families with high-value estate face several complex legal and tax issues. And, estate tax is only one of them. We offer a number of advanced estate planning strategies that are primarily aimed at reducing a family’s tax burden.

ESTATE TAX PLANNING LAWYERS IN MASSACHUSETTS

You worked hard to build your family’s wealth and legacy, so it makes sense to put similar effort into protecting those assets. That includes protecting them against excessive taxes.

Call us or use the button below to schedule your Planning Session and learn how we can help you minimize the potential tax burden faced by your family so you can maximize the inheritance you pass on.