One of the more exciting bits of news a person can get at work is that they got a promotion. This can be a big thing for a person, financially and professionally. It is important though for individuals to not let the excitement of getting promoted cause them to miss the fact that there could be some important legal issues to address in connection to their promotion. For example, a promotion could end up necessitating an update of one's estate plan, as there are a variety of estate planning concerns a promotion could trigger.
Sadly, there are ways in which the after-death distribution of a deceased person's estate could end up not matching the deceased's goals for the distribution.
Here in Massachusetts, there is a state estate tax for estates that exceed $1 million in value. There are many different kinds of people that could potentially end up with an estate that could cross this threshold. And it is not limited to just the people society typically would view as being very wealthy.
Elderly individuals sometimes face financial challenges in their retirement years. Such challenges can sometimes endanger a retiree's ability to have the type of retirement they desire. They could also have the potential to reduce what assets a retiree has available to give to their family and loved ones, both during their life and after their death. For elderly individuals who have a great desire to provide financial support to their family and loved ones, such a potential reduction can be a very concerning thing.
The death of a spouse can be a devastating emotional experience for a person. In this often very challenging time, the last thing a person may want to think about is taxes. However, one tax-related thing it can be important for a person to check fairly promptly after a spouse’s death, particularly if their spouse had a large estate, is whether their spouse did any estate tax planning.
One strong desire that many elderly individuals here in Massachusetts have is that, when they die, as much of the property they acquired over their life goes to the people they care about as possible. Thus, they generally want as little of their estate redirected, upon death, to other sources as possible. One thing that can lead to such unwanted redirection of portions of a deceased person's estate are estate taxes.
When it comes to estate taxes, much of the discussion tends to focus on the federal estate tax. However, if a loved one who resides here in Massachusetts passes away, know this is a state with its own estate tax in place. This means the state can sometimes take a percentage of the value of an estate. This state estate tax can affect those estates worth upwards of $1 million.