Nearly every Massachusetts resident could benefit from a carefully drafted estate plan. Any estate over one million dollars is taxable in Massachusetts, and the tax rate is unforgiving. Simply having improperly titled property at your time of death can lead to a significant tax liability for your family members.
You may think to yourself a million dollars is quite a lot, that won’t affect me. Maybe so, but most people do not realize that their life insurance policies and retirement accounts are includable in their taxable estates. A single, million-dollar life insurance policy could eat up your entire exemption in Massachusetts, leaving the rest of the assets in your estate exposed to taxation.
However, that same life insurance policy can pass to the beneficiary free of both estate tax liability and income tax liability with a thoughtful estate plan. The difference is huge, and the options and possibilities for tax savings only increase with your wealth.
Simply put, if you want your money and property to end up where it belongs when you die, and not in Uncle Sam’s pocket, you need an estate planning attorney.