John Shoro Quoted in Forbes’ “IRS Announces Higher Estate and Gift Tax Limits For 2020”
The IRS has announced the official estate and gift tax limits for 2020. So what should you consider when doing your estate planning? Bowditch partner John Shoro has some words of advice if you live in one of 17 states and D.C. that have their own estate and/or inheritance taxes (Massachusetts being one of them).
Says John in the article:
“People should be more proactive; they’re sitting on their hands because they think they don’t have a problem; while they may not have a federal estate tax problem, they may have a state estate tax problem,” says John Shoro, an estate lawyer with Bowditch & Dewey in Worcester, Mass. Say you’re worth $5 million. The federal estate tax exemption is $11 million. No worries. But the Massachusetts estate tax bill would be $391,600. Give away $2 million, and the tax would be $182,000. Get the idea?
Lastly, don’t make the mistake of giving your kids highly appreciated assets to avoid state estate tax, Shoro warns. Your kids could face a capital gains bill that’s worse than what the tax bill would have been. It’s better to leave those assets in your estate so they get a step-up in basis at your death.
Continue reading “IRS Announces Higher Estate And Gift Tax Limits For 2020” on the Forbes website.