Q1: What is an estate tax return?
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.
Q2: When is an estate tax return required?
A: A federal estate tax return (Form 706) is generally required if the gross estate exceeds the federal exemption amount (currently approximately $13.99 million in 2025). A Massachusetts estate tax return (M-706) must be filed if the gross estate exceeds $2 million. Even estates that owe no federal tax may still have a Massachusetts filing requirement.
Q3: What is included in the gross estate?
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.
Q4: How long do I have to file an estate tax return?
A: Estate tax returns are generally due nine months after the date of death. Extensions may be requested for filing the return, but not for paying any estate taxes owed. Missing deadlines can result in significant penalties and interest. Boyd & Boyd, P.C. helps executors and trustees manage these critical timelines.
Q5: How can Boyd & Boyd, P.C. help with estate tax return preparation?
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.
Should Ask Questions (SAQs)
Q1: Can mistakes on an estate tax return trigger an audit?
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.
Q3: Does portability apply to estate tax returns?
A: Yes — at the federal level. Filing a timely Form 706 can preserve a deceased spouse’s unused federal estate tax exemption for the surviving spouse (portability election). However, Massachusetts does not allow portability, making Credit Shelter Trusts critical for state-level planning. Boyd & Boyd, P.C. expertly coordinates federal and state planning to protect your family’s exemptions.
Q4: How are jointly owned or trust-owned assets reported?
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.
Q5: What happens if an estate tax return is filed late?
A: Filing late can result in substantial penalties and interest, even if no tax is ultimately owed. In some cases, personal representatives can be held personally liable for unpaid taxes. At Boyd & Boyd, P.C., we prioritize timely, accurate filing to protect clients from avoidable 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.
Book Your Estate Tax Return Consultation or Request Our Free Estate Tax Filing Checklist.
