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A Close Look at the New Massachusetts $2 Million Estate Tax Exemption

Understand the new law, filing requirements, issues, and planning opportunities

  • Product Number: 2240341P01
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    On October 4, 2023, Massachusetts increased its $1,000,000 estate tax exemption to $2,000,000 per decedent. Interestingly, the new exemption amount applies to decedents who died on or after January 1, 2023, effectively making it retroactive. Estate tax returns are due, together with any payment, nine months after the date of death, which means the estate tax returns and payment would have been due October 1, 2023. Masschusetts did not, however, adopt portability. This makes planning for married couples even more important than ever. Separately, the new law requires that married couples must file joint income tax returns in Massachusetts if they filed as “married filing jointly” for their federal personal income tax returns. This is problematic for wealthy couples where the wealthier spouse has changed their domicile to an income tax-free state such as Florida or New Hampshire. Finally, did the new law really eliminate the so-called Cliff Effect in favor of a higher Massachusetts estate tax rate? This cutting-edge program examines the new law, filing requirements, issues, and planning opportunities.

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