On October 4, 2023, Massachusetts Governor Maura Healey signed sweeping tax changes into law. One of the most important of these changes was to the Commonwealth’s estate tax exemption. Historically, the exemption amount was one of the lowest in the country ($1M/ per estate). The new law raises that amount to ($2M/ per estate) and is retroactive to January 1, 2023.
Another change as to the calculation of the amount of estate tax, is that now only the amounts “exceeding” the $2M level will be taxed, unlike before when the calculation began with “dollar #1” if the exemption was pierced by any amount.
The new law, however, is not “portable” between spouses like the federal estate tax law, nor is the new Massachusetts estate tax law indexed for inflation. ( * Other tax changes should be reviewed by your tax accountant or advisor).
If you have any questions about this new law, please feel free to call our Trust & Estate Attorneys.
This article is for informational and educational purposes and is not intended to be legal advice. You should consult legal counsel to assess the legal issues specific to your case.
