When it comes to estate taxes and probate in Boston, MA, there are several important considerations for lawyers to keep in mind. Estate taxes are taxes imposed on the transfer of a person's assets after their death. Probate, on the other hand, is the legal process through which a deceased person's assets are distributed to their heirs and beneficiaries.
In Massachusetts, estate taxes are governed by state law. The Massachusetts estate tax is often referred to as the "Massachusetts estate tax" or the "death tax." It is important for lawyers to understand the intricacies of this tax in order to properly advise their clients.
One key aspect of the Massachusetts estate tax is the exemption threshold. As of 2021, the exemption threshold is $1 million. This means that estates valued at $1 million or less are exempt from the Massachusetts estate tax. However, any amount over the exemption threshold is subject to taxation.
For example, if a deceased person's estate is valued at $1.5 million, the estate tax would only apply to the $500,000 that exceeds the exemption threshold. It is important for lawyers to calculate and plan for these taxes when assisting clients with estate planning.
In addition to the Massachusetts estate tax, lawyers must also navigate the probate process. Probate can be a complex and time-consuming process, involving the validation of the deceased person's will, the identification and valuation of assets, payment of debts and taxes, and the distribution of assets to heirs and beneficiaries.
Lawyers can assist their clients by guiding them through the probate process, ensuring that all necessary legal steps are taken, and helping to resolve any disputes that may arise among beneficiaries. It is crucial for lawyers to have a thorough understanding of Massachusetts probate law and procedures in order to effectively represent their clients.
References:
Massachusetts Department of Revenue - Estate Tax: https://www.mass.gov/info-details/estate-tax
Massachusetts Probate and Family Court: https://www.mass.gov/orgs/probate-and-family-court
By staying informed about the Massachusetts estate tax and probate laws, lawyers in Boston can provide valuable guidance to their clients and ensure that their estates are handled in accordance with the law.