Boston MA Estate Tax Planning
You’ve had your will drawn-up. And perhaps you’ve even had a trust put in place.
But have you considered how much of your assets will be eaten-up by estate taxes?
Many people don’t think about estate tax estates because they believe it doesn’t apply to them.
Although it’s true that the wealthy have to plan more carefully, you’d be surprised estate at how many people actually face harsh tax burdens – even those that consider themselves “middle-class”.
And with the Federal and Commonwealth of Massachusetts estate tax combine for a 50% tax on your estate, it’s a good idea to find out where you really stand and how to minimize half of your estates value going to the tax man.
Let’s take a quick look at the current Federal Estate Tax guidelines and what is going to happen to these guidelines in the next several years.
For 2009, an estate that is worth in excess of $3.5 million is taxed. If you’re under that amount your estate is safe from the federal estate tax burden.
In 2010, the Federal Estate Tax has been repealed so if a death occurs in 2010, there is no Federal Estate Tax at all.
But in 2011, the Federal Estate Tax comes back into play and the tax liability will impact millions of U.S. citizens because any estate worth more than $1 million will face the Federal Estate Tax burden.
With a home, a couple of cars, insurance policies and retirement plans likely putting many people over the $1 million threshold, the middle-class is going to be shocked when they learn the Federal Government considers them wealthy.
And it’s not just the Federal Government that’s looking to grab a piece of your estate. Massachusetts also has an estate tax – any estate worth more than $1 million is subject to the Commonwealth’s estate tax.
In order to preserve your wealth for your heirs and avoid the long probate period where your assets need to be sold to pay the estate taxes, why not investigate Estate Tax Planning.
Estate Tax Planning is simply this – planning to minimize your estate tax burden.
Professional estate tax planning simply utilizes exemptions to shelter assets. For instance, I use a number of different strategies to shelter your assets and minimize your tax burden.
The most common are trusts, redistribution of ownership and “gifting”.
And very creative estate tax planning can shelter up to $7 million in assets from the Federal tax burden and up to $2 million from the Commonwealth.
If you have questions about estate tax planning in Massachusetts and are concerned about what will happen to your estate after your passing, call me at (617) 273-5110, or click here to email me: [mailto]email@example.com[/mailto]