The Boston Globe Quotes Scott Cashman in “How to avoid the Massachusetts estate tax? Try not to die.”
Massachusetts is only the 37th highest-taxed state in the country, however, it is also one of only 11 states that taxes your estate when you die. The estate tax applies to all property, including your house and proceeds from life insurance policies. Estates under $1 million are allowed an exemption, but if your estate goes over the threshold the entire exemption disappears. Due to the rising cost of homes in the Commonwealth, many individuals have been pushed into the “millionaire” category and will be subject to the estate tax when they die. Only one other state, Oregon, has an estate tax exemption that is still as low as $1 million, but unlike in Massachusetts, only the amount over $1 million is taxed.
A current estate tax reform proposal has been a bipartisan priority in the Legislature, however, the legislation was sidelined this year due to a 1986 voter-approved measure that sent $3 billion in excess revenue back to taxpayers. The Boston Globe quoted Scott Cashman about the estate tax reform, which was expected to be enacted by the end of the 2022 legislative session on July 31, but was not. Scott stated:
“The failure of the Legislature to pass the much-anticipated estate tax reform proposed by Governor Baker is yet another major disappointment. Both progressives and conservatives agreed that Massachusetts is in dire need of estate tax reform … and Massachusetts is unduly burdensome in that regard, which is driving retiring residents away.”
Continue reading “How to avoid the Massachusetts estate tax? Try not to die.” on The Boston Globe website (subscription required).