A: An estate tax return, typically Form 706 (for federal estate tax) and the Massachusetts M-706 (for state estate tax), reports the value of a decedent’s assets at death and calculates any estate taxes owed. Properly preparing these returns is critical to complying with tax laws, preserving available exemptions, and minimizing tax liability. Boyd & Boyd, P.C. has extensive experience preparing both federal and Massachusetts estate tax returns.
A: For a U.S. citizen or resident who dies in 2026, Form 706 is generally required when the gross estate plus adjusted taxable gifts and any applicable specific exemption exceeds $15 million. A return is also needed to elect federal portability, even when no tax is due. For a Massachusetts resident dying on or after January 1, 2023, Form M-706 is generally required when the gross estate plus adjusted taxable gifts exceeds $2 million. Nonresident estates have separate rules. A filing requirement and the amount of tax owed are different questions.
A: The gross estate includes all assets owned by the decedent at death, such as real estate, bank accounts, investments, retirement accounts, business interests, and life insurance proceeds (if owned by the decedent). Proper asset valuation is crucial to accurately calculating tax liability and avoiding IRS or Massachusetts Department of Revenue scrutiny.
A: Estate tax returns and payment are generally due nine months after death. An extension to file does not automatically extend the payment deadline. Separate payment extensions or other qualifying relief may be available under federal and Massachusetts rules, and interest may continue to accrue. Requests must meet the applicable timing and eligibility requirements. Boyd & Boyd, P.C. helps executors and trustees manage these deadlines.
A: We handle every aspect of estate tax return preparation, including asset valuations, exemption elections (such as portability), deduction maximization (debts, administration expenses, charitable deductions), and post-mortem tax planning. Our deep knowledge of both federal and Massachusetts estate tax law ensures compliance while minimizing the estate’s tax burden.
A: Yes. Inaccurate valuations, incomplete asset disclosures, or mathematical errors can trigger audits by the IRS or the Massachusetts Department of Revenue. Audits can delay estate settlement and expose executors to personal liability. Boyd & Boyd, P.C. prepares meticulous, fully documented returns to minimize audit risks.
Q2: What deductions are available on an estate tax return? A: Estates can deduct funeral expenses, administrative expenses (such as legal and accounting fees), certain debts of the decedent, and charitable bequests. Maximizing allowable deductions can significantly reduce estate tax liability. Our team ensures no eligible deduction is overlooked.
A: Yes, at the federal level. Filing Form 706 within the applicable deadline can preserve a deceased spouse’s unused federal estate tax exclusion for the surviving spouse through a portability election; limited relief may be available for certain late elections. Massachusetts does not provide the same portability benefit, so trusts and other state-level planning options should be evaluated for the family’s circumstances. Boyd & Boyd, P.C. coordinates federal and state planning.
A: Jointly owned assets and assets in a revocable trust must still be reported on the estate tax return. Special valuation rules apply depending on the type of ownership. We help executors properly identify and report all required assets to ensure full compliance.
A: Late filing or payment can lead to penalties and interest on unpaid tax. Even when no tax is owed, a missed filing deadline can jeopardize elections such as portability, subject to available relief. Personal representatives may also face liability for unpaid estate taxes in some circumstances. At Boyd & Boyd, P.C., we prioritize timely, accurate filing to help clients avoid these risks.
Estate tax return preparation is complex — but you don’t have to navigate it alone.
Schedule a confidential consultation with Boyd & Boyd, P.C. and let our experienced team ensure your loved one’s estate tax filings are handled with precision and care.
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(508) 444-9688 · plan@boydandboydpc.com