Massachusetts Estate Tax Planning

Massachusetts is one of only a handful of states that still imposes its own estate tax. Hereto, this is separate from any federal estate tax. Without careful planning, your family faces a state tax bill that a little foresight could have reduced or avoided altogether. Therefore, at Hera Law Group, we help Massachusetts individuals and families understand their estate tax exposure and build a plan designed to protect what they’ve worked to build.

How the Massachusetts Estate Tax Works

Massachusetts currently provides a $2 million exemption per individual. This means estates valued at or below that amount generally owe no Massachusetts estate tax. Estates that exceed $2 million are taxed only on the amount above the threshold. The rates increase gradually — from under 1% up to a top rate of 16% — as the size of the estate grows.

A Key Planning Challenge: No Portability

Unlike the federal estate tax, Massachusetts does not allow portability between spouses. This means each spouse has their own separate $2 million exemption. If the first spouse to pass away leaves everything outright to the surviving spouse, that first exemption is lost entirely. Proper planning is essential to make sure both spouses’ exemptions are preserved and put to full use.

Common Estate Tax Planning Strategies

• Credit shelter (bypass) trusts to preserve the first spouse’s exemption for the benefit of the surviving spouse and family
• QTIP trusts to qualify for the marital deduction while maintaining control over how assets are ultimately distributed
• Lifetime gifting, since Massachusetts imposes no separate state gift tax
• Irrevocable life insurance trusts (ILITs) to remove life insurance proceeds from the taxable estate

The right combination of strategies depends on your family’s assets, goals, and circumstances, which is why a one-size-fits-all approach rarely serves clients well.

Why Work With Hera Law Group

Estate tax planning is about more than minimizing taxes — it’s about making sure your assets pass to the people and causes you care about, with as little friction and expense as possible. Our attorneys work with Massachusetts clients to build estate plans that account for current tax law and anticipate future changes.

Contact Us to Get Started

We welcome you to call us for a free initial 15-minute phone consultation to discuss your estate and tax planning needs.

Call 978.637.2048 or email office@heralawgroup.com to schedule your consultation today.

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