Massachusetts is already an unattractive state of residency from an estate tax planning perspective because of its low estate tax filing threshold of $1,000,000 per person. Once a person’s adjusted taxable estate is over $1M (including real estate values, life insurance, retirement accounts, other assets and adjusted taxable gifts), a Massachusetts estate tax return must be filed. Our commonwealth imposes a tax rate ranging from .8% to 16% on the adjusted taxable estate in excess of $40,000.
Nonresident decedents are subject to the same filing threshold based on the value of the real estate and tangible personal property owned or transferred in Massachusetts. Intangible assets (e.g. investment accounts and bank accounts which are deemed not to have a geographical location) of nonresidents have, up until now, been off the table in determining Massachusetts estate tax liability.
This year, Massachusetts just got a little less attractive as a retirement destination for the surviving spouse of a nonresident...
