When it comes to estate taxes, many issues may need to be taken into consideration, even after a person has passed away. For example, if your spouse recently lost his or her life, you may not realize that you could still be able to benefit from estate tax planning. Families may also encounter other hardships after a loved one passes away, such as disputes over how assets are distributed or difficulties related to paying estate taxes. In Middlesex, and all across the state of Massachusetts, people may need estate tax closing letters to clear tax liens or close probate. If you need an estate tax closing letter, it is important to review the process of obtaining the letter.
With regard to estate taxes, there may be a number of questions on your mind. However, it is important to have a solid understanding of some of the basic terms if you are preparing to plan ahead and reduce or even get rid of estate taxes. If you live in Middlesex, or another city in Massachusetts, having familiarity with some of the basic estate tax terms, such as federal gross estate, can help you understand your situation better and make sure that you properly prepare for estate taxes.
Whether you have a will or are thinking about setting up a trust, you may have many different types of estate-related considerations. However, you should definitely look into estate taxes if you have a high net worth, or think your financial situation may result in estate taxes. At Curley Law Firm, we know how stressful these issues can be for people who live in Middlesex, and across the whole state of Massachusetts. However, planning ahead with regard to estate taxes can be very beneficial.
When you are planning your estate in Massachusetts, you may have to undergo a capacity test of some kind to ensure you have the mental capacity to legally create your estate documents. Most often the idea of capacity is used when it comes to the creation of your will, according to the American Psychological Association.
Currently, the federal estate tax exemption amount is nearly five and a half million dollars. When confronted with this high number, many people might immediately assume that estate taxes would never apply to them and that they don’t have to worry about estate tax planning.
Many things can impact what kinds of state estate tax issues could come up in relation to a person’s estate here in Massachusetts.
This time of year, many people are thinking about what kinds of gifts they are going to give their family and friends for the holidays. Some individuals end up deciding to give their loved ones financial gifts.
Some might think that estate taxes are the only tax issue where estate planning and taxes really intersect. However, there are other types of tax issues estate planning can be directed towards. This includes income tax issues, like issues regarding the capital gains tax and stepped-up basis. These issues can impact how much in the way of income tax liability a given gift could expose a person’s beneficiaries to.
When a person has built up a lot of wealth, one of their hopes may be that this wealth will remain in their family for a long time after their death. However, there are many challenges that can arise when it comes to actually keeping wealth in the family.
When it comes to the Massachusetts estate tax, a very critical number is $1 million. This is the state's exclusion amount. Whether or not a deceased's estate will be subject to the state estate tax depends on whether this threshold is crossed.