So, for a lot of families, especially here in Massachusetts, estate tax is maybe something that a family will have to pay when there’s a death in the family.
There are two different estate
- Federal Estate Tax: Really high exemption so that’s not of as much concern to most families.
- State Estate Tax: Kicks in at a million dollars so for a lot of people that is more of a concern that million dollars is counted up of your the equity value in your house, your bank accounts, your investment accounts, retirement accounts, and life insurance.
So, it’s not hard to cross over that threshold. Once you cross over that threshold in Massachusetts there will be an estate tax that’s due.
Now, the good news is there are easy ways to plan around the estate tax so that it can be eliminated or at least minimized to the greatest extent possible. But, it doesn’t happen automatically it’s something that you’ve got to plan for and plan around.
