Until recently, the Massachusetts Estate Tax Exemption has remained the same since 2006. On October 4, 2023, Governor Maura Healy signed into law Massachusetts' first tax cuts in over two decades. This includes the long-awaited Estate Tax Reform that has now doubled the Massachusetts estate tax exemption from $1 million to $2 million. This is effective for estates of individuals who passed away as of January 1, 2023. It also includes a credit that mitigates the former cliff effect.  

The new Massachusetts estate tax exemption is not indexed for inflation like the federal estate tax exemption, so it will remain until any future changes are signed into law. By comparison, the federal estate tax threshold for 2023 is $12.92 million, with Massachusetts only at $2 million.  Therefore, even if your estate does not meet the large federal threshold of nearly $13 million, you will still owe the Massachusetts estate tax if you meet the $2 million threshold.  

While it is anticipated that the Massachusetts Department of Revenue will issue guidance based upon the new law, it is vitally important that you consult an attorney and financial/tax advisor for your estate planning and estate administration needs. The Law Offices of Tracy Wilson, P.C., is a trusted source for counsel on these matters and we welcome new clients to explore our services.

Contact the Law Offices of Tracy Wilson, P.C., for any estate planning or estate administration needs at 617-847-6993.