Planning for Tomorrow, Today
Carl Sandburg wrote, “The greatest certainty in life is death. The greatest uncertainty is the time.” It is difficult to think about the end of your life, and few people want to consider it before it is forced upon them by age or disease. A 2021 Gallup poll found that fewer than half of Americans, a mere 46%, reported having a plan in place. Though difficult, creating an estate plan is essential for adults over 18. Having a plan in place ensures that your assets go to whomever you designate they should go to, and this decision is not left up to your grieving friends or family or, in the worst case, the state. At Simmons & Schiavo, LLP, we understand that end-of-life and estate planning are emotional and complex topics. We will help you navigate this path and create the best plan possible so that neither you nor your family need to worry about added distress during a difficult life transition. At Simmons & Schiavo, LLP, your peace of mind is our priority— call 781-675-1315 for a consultation.
When Should I Create An Estate Plan?
A last will and testament and trust give clear instructions about what you want to happen to your belongings and financial affairs in the event of your death. If you want any say in what happens after you pass away, it is imperative that you create a plan as early as possible.
Our experienced estate lawyers are available to answer your questions.
What is Probate?
Probate is the legal process an estate must undergo after a person dies for assets that are not jointly held or do not have a designated beneficiary. Probate does not begin automatically. Part of the estate planning process involves designating an executor who will be the person to come forward and file the required paperwork and oversee the estate affairs after you have passed away.
One of the biggest misconceptions that we see is the belief that a Will avoids probate. This is not the case. If there is a will, the executor must file it with the probate court. Other forms must also be filed, and fees must be paid. The estate executor can expect their role to last anywhere from one year to eighteen months.
Massachusetts’s probate process is more time-consuming and costly than most people realize. It is also a public process where the Will and estate assets information are readily accessible online by the general public. Effective estate planning and use of trusts mitigate these headaches and maintain privacy.
What is the Estate Tax?
The estate tax is a tax on the value of the assets transferred to your heirs after you pass away. In some circles, it is also known colloquially as the ‘death tax’ since it is administered on the estate immediately after the decedent has passed. The Internal Revenue Service states that the tax is levied upon “everything you own or have certain interests in at the date of your death,”
Does Massachusetts Have an Estate Tax?
Yes. There is a Massachusetts estate tax. It is placed on:
- Those individuals who passed on or after January 1, 2016, and before January 1, 2023, with a gross estate of more than 1,000,000.00
- For Individuals who passed on or after January 1, 2023, the cap rises to 2,000,000.00.
- For larger estates, you may still be liable for federal estate taxes. For this reason, it is advisable that you speak to us regarding estate taxes.
Many people are uncomfortable when the topic of death is mentioned. Especially when it is their own, no one wants to think about their passing, and no one wants to think about the inevitable grief their family and loved ones will be feeling when this sad event occurs. Unfortunately, it cannot be avoided, and planning is a loving gift you can leave as part of your legacy. Our compassionate and understanding estate attorneys will guide you through it. We will do everything possible to help make this difficult transition more manageable for your family. You are our priority, and we are here for you.
How does the Estate Tax impact My Out-of-State Real Estate?
Previously, Massachusetts attempted to collect tax on all real estate owned by a decedent, including real estate outside of Massachusetts. The Department of Revenue even included language in their publications stating that such taxes were owed as part of the standard estate tax. This language was challenged as unconstitutional in the Dassori v. Commissioner of Revenue case. The court found that the estate tax cannot include out-of-state real estate owned in the name of the decedent. Non-residents who own property in Massachusetts will still need to file an estate tax return if their assets are in excess of the exemption. Still, a skilled attorney can best explain their planning options should this be necessary.
When Should I Call an Estate Planning Attorney
There are few gifts we leave our loved ones that give them true peace of mind. One of these gifts is an estate plan that allows for an efficient distribution of your assets after you are gone that does not involve the courts. In working with our office for your estate plan, you will also have peace of mind knowing that your family will be in good hands after you are gone. Strategic planning can mitigate much of the stress for your survivors. Simmons & Schiavo, LLP is driven by empathy, compassion, and professionalism, and we pride ourselves on going above and beyond in addressing what matters the most: giving you peace of mind—call 781-675-1315 to schedule your consultation.
