LAW OFFICES OF
Boyd & Boyd, P.C.
Massachusetts Estate Tax Planning for families nationwide.
You Built It for Your Family. How Much Will Massachusetts Keep?
Your home, retirement savings, and other assets may create a state tax question even when federal Estate Tax is not a concern. Start with what worries you. Explore how planning could preserve more of the inheritance you intend to leave.
Compare the Taxes Before Choosing the Plan
Estate Tax planning and income tax basis planning interact. Moving an asset outside a taxable estate can reduce Estate Tax but may affect the basis available when that asset is sold. Compare the potential total tax cost, ownership, appreciation, and family goals before choosing a strategy.
Which Estate Tax Question Is on Your Mind?
Choose your question. The cards will adapt to explain the stakes, the rules, and your next step.
You can change your question at any time.
YOUR QUESTION, ANSWERED
Will my family owe Massachusetts Estate Tax?
You Can Be Below the Federal Limit—and Still Have a Massachusetts Tax Problem.
For deaths in 2026, the federal Estate Tax basic exclusion is $15 million. Massachusetts has a much lower threshold: its return-filing test generally applies when the gross estate plus adjusted taxable gifts exceeds $2 million.
A filing requirement and a tax bill are different questions. Deductions, credits, ownership, and other rules affect the result. Do not use the federal number alone to decide whether your family needs planning.
THE RULE BEHIND THE RISK
The Federal Number Changed. Massachusetts Did Not Follow It.
The federal exclusion rose to $15 million for 2026. Massachusetts continues to use its separate Estate Tax system, tied to federal law as it existed on December 31, 2000, with Massachusetts modifications.
That is how a reassuring headline about federal tax can leave a family asking the wrong question. The state calculation still needs attention.
The useful takeaway is not that everyone owes tax. It is that your family deserves an answer based on the rules that actually apply to your estate.
WHAT THIS MEANS FOR YOUR FAMILY
How Much of What You Built Will Reach the People You Chose?
Your home, savings, retirement accounts, and other assets may have grown over years without feeling like an extraordinary fortune. Start with an inventory rather than a guess.
Then connect the numbers to your priorities. Would a tax payment affect a surviving spouse’s security, the inheritance you intend for children, or the family’s ability to retain property?
Planning is a chance to explore lawful ways to preserve more for your family before they must settle your estate.
YOUR NEXT STEP
Find Out Which Tax Questions Matter to Your Family.
Start with the free educational download below. Its thank-you page gives you immediate access and an invitation to discuss your own questions with our team.
Discuss the next step toward evaluating your exposure and an appropriate planning approach.
YOUR QUESTION, ANSWERED
What counts toward the Massachusetts Estate Tax threshold?
Your Estate May Be Larger Than Your Bank Balance Suggests.
The Estate Tax inventory can include real estate, retirement accounts, investments, business interests, and includible life insurance proceeds. It can also include property passing outside Probate.
What belongs in the gross estate depends on your interests and ownership. Deductions and Massachusetts adjustments are separate parts of the analysis; a simple net-worth estimate is not the whole filing test.
THE RULE BEHIND THE RISK
Avoiding Probate Does Not Make an Asset Disappear From the Tax Inventory.
The IRS distinguishes the gross estate from the Probate estate. Its guidance lists assets such as insurance, Trust interests, and jointly held property among the items that may need to be accounted for.
Massachusetts uses a federal-law framework with its own modifications. An account that transfers directly to a beneficiary can still matter to the tax analysis.
That distinction changes the first task: gather the property and policy information, not just the assets listed in a Will.
WHAT THIS MEANS FOR YOUR FAMILY
Look at What Your Family Would Receive, Not Just What You Spend.
A home purchased long ago may be worth far more today. Retirement savings may have grown quietly. A life insurance policy may provide a benefit much larger than its current cash value.
The amounts included are not necessarily the full balance of every jointly owned asset or every policy. That is why ownership and the relevant rules need review.
A complete picture helps you decide whether planning is worth pursuing—and prevents a forgotten asset from surprising the people handling your estate.
YOUR NEXT STEP
Bring the Pieces Together Before Choosing a Strategy.
Start with the free educational download below. Its thank-you page gives you immediate access and an invitation to discuss your own questions with our team.
You do not need a perfect spreadsheet before calling. Start with your home, accounts, insurance, and business interests; discuss what information a further review would require.
YOUR QUESTION, ANSWERED
Do married couples automatically get a $4 million Massachusetts exemption?
Two Spouses Do Not Automatically Mean Twice the Massachusetts Protection.
Massachusetts does not provide the federal-style portability election that transfers a deceased spouse’s unused exclusion to the survivor. Do not assume marriage alone produces a combined $4 million Massachusetts exemption.
Qualifying transfers to a spouse may receive a marital deduction, postponing tax. That is different from preserving both spouses’ planning opportunities. Ownership and Trust terms should be considered for the first death and the survivor’s later estate.
THE RULE BEHIND THE RISK
A Federal Election and a State Plan Are Different Things.
Federal portability began for deaths after 2010 and generally requires an Estate Tax return election. Massachusetts bases its system on an earlier federal-law framework and does not adopt that portability benefit.
Leaving everything to a spouse may address an immediate inheritance goal. The next question is what happens to the survivor’s estate afterward.
The planning lesson is to look through both stages of the family’s life—not just the first transfer.
WHAT THIS MEANS FOR YOUR FAMILY
Protect the Survivor Without Losing Sight of the Next Generation.
Your spouse needs access, security, and a workable plan. Your children or other beneficiaries may ultimately receive what remains.
Those goals need to be considered together. A strategy focused only on reducing a future tax bill can be a poor fit if it creates restrictions the survivor cannot live with.
Ask how the proposed structure balances the survivor’s needs, control, administration, and the inheritance you want to leave.
YOUR NEXT STEP
Plan for Both Spouses, Not Just the First Death.
Start with the free educational download below. Its thank-you page gives you immediate access and an invitation to discuss your own questions with our team.
Explore which marital and Trust-planning questions warrant a closer review before making changes.
YOUR QUESTION, ANSWERED
Does a Living Trust avoid Massachusetts Estate Tax?
Outside Probate Does Not Mean Outside the Tax System.
A Revocable Living Trust does not, by itself, remove its assets from your taxable estate. You generally retain control, and that retained control matters to Estate Tax inclusion.
A Trust can serve important purposes, including continuity and Probate avoidance. Tax planning requires attention to the actual terms, interests, funding, and applicable rules—not just a document called a Trust.
THE RULE BEHIND THE RISK
The IRS Looks at the Rights You Keep.
The IRS’s Estate Tax guidance states that assets held at death in a Revocable Trust created during life are included in the creator’s gross estate.
Its guidance also explains that some Irrevocable Trust assets remain includible when the person who transferred them retained certain interests or powers.
The lesson is practical: a label cannot answer the tax question. The structure must be evaluated against the goal.
WHAT THIS MEANS FOR YOUR FAMILY
What Problem Was Your Trust Designed to Solve?
Was it created to manage assets during illness, keep property out of Probate, plan for a spouse, or address an inheritance risk? Those are different objectives.
A Trust may be doing its intended job and still leave an Estate Tax question unresolved. That calls for review rather than an assumption that the plan failed.
Understand what your current plan accomplishes before deciding what needs to change.
YOUR NEXT STEP
Start With Your Existing Plan and Today’s Priorities.
Start with the free educational download below. Its thank-you page gives you immediate access and an invitation to discuss your own questions with our team.
Discuss what you believe it does, what has changed, and whether a further review of your Estate Tax planning is appropriate.
YOUR QUESTION, ANSWERED
Can Massachusetts Estate Tax apply if I live in another state?
Your Home Address May Be Elsewhere. Your Massachusetts Property Still Matters.
Yes. A nonresident who owns or transfers Massachusetts real estate or tangible personal property can have a Massachusetts Estate Tax filing obligation.
The filing test generally considers the worldwide estate plus adjusted taxable gifts. The nonresident tax computation is a separate analysis focused on Massachusetts property under the applicable rules. Filing a return does not automatically mean tax is due.
THE RULE BEHIND THE RISK
The Filing Test and the Tax Calculation Follow Different Tracks.
Massachusetts DOR requires qualifying nonresident estates to file Form M-706 with the Nonresident Decedent Affidavit, Form M-NRA.
The law also changed in 2024 and again in 2025. Current instructions matter; an old explanation of the nonresident calculation may no longer describe the applicable method.
A family with property in more than one state needs coordinated planning, rather than assuming that one state’s exemption answers every question.
WHAT THIS MEANS FOR YOUR FAMILY
Would Your Family Want to Keep the Massachusetts Property?
A seasonal home, investment property, or other family property may be part of what you want to pass on. Think about who should receive it and how it will be managed.
Then consider the property alongside the rest of your estate. State rules, ownership arrangements, and cash available for administration can affect the plan.
We assist families nationwide. Families may come to our Massachusetts office to sign, or we may work with co-counsel licensed in their home state.
YOUR NEXT STEP
Bring Both States Into the Conversation.
Start with the free educational download below. Its thank-you page gives you immediate access and an invitation to discuss your own questions with our team.
Discuss how an appropriate planning engagement could coordinate the Massachusetts issues with the law of your home state.
YOUR QUESTION, ANSWERED
Should I give assets to my children now to reduce Estate Taxes?
A Smaller Estate Is Not a Better Result if the Gift Creates a Bigger Problem.
Lifetime gifts can be part of Estate Tax planning, but a gift should be evaluated alongside your own financial needs, control of the property, gift-reporting rules, and the recipient’s future tax consequences.
Massachusetts filing rules take adjusted taxable gifts into account. Giving property away is not a reliable shortcut to assuming no return will be needed.
THE RULE BEHIND THE RISK
The Same Property Can Carry Different Tax Consequences.
The IRS explains that gifted property and inherited property follow different tax-basis rules. Basis helps determine the taxable gain when the recipient later sells the asset.
For a gain on gifted property, the donor’s adjusted basis generally carries over. Inherited property generally receives a basis tied to its value at death, subject to exceptions.
That difference means an Estate Tax decision and a future capital-gains decision should be considered together.
WHAT THIS MEANS FOR YOUR FAMILY
Keep Your Own Security in the Plan.
Would you still have enough income and access to assets after making the gift? Are you comfortable giving up control? Could the recipient’s divorce, debts, or decisions affect the property?
Those questions are as important as a potential tax reduction. A transfer that undermines your retirement or exposes family property to a new risk may defeat the purpose.
The objective is to improve the family’s overall position. Reducing Estate Tax can be counterproductive if a lost basis adjustment creates a larger capital-gains bill. Compare both taxes before transferring appreciated property.
YOUR NEXT STEP
Discuss the Gift Before You Make It.
Start with the free educational download below. Its thank-you page gives you immediate access and an invitation to discuss your own questions with our team.
Identify the next step toward evaluating the tax and family tradeoffs before changing ownership.
YOUR QUESTION, ANSWERED
Should I review a plan written before the Massachusetts tax law changed?
The Law Changed. Your Trust’s Instructions May Still Reflect the Old Rules.
A review may be worthwhile, especially if your plan uses tax formulas, contains marital Trust provisions, or was written when Massachusetts had a $1 million threshold.
The state’s 2023, 2024, and 2025 changes are reasons to revisit the fit of a plan. They do not mean every older Trust is defective or that every family needs a replacement.
THE RULE BEHIND THE RISK
Three Law Changes. One Plan That May Not Have Been Revisited.
In 2023, Massachusetts introduced a credit that eliminated Estate Tax for estates valued at $2 million or less and reduced tax for larger estates.
The state changed treatment of out-of-state property in 2024. Amendments effective August 1, 2025 also addressed the tax computation and Massachusetts QTIP property.
The practical question is whether your existing instructions still serve your current family, property, and priorities under the applicable law.
WHAT THIS MEANS FOR YOUR FAMILY
A Review Is About Fit, Not Replacing Paper for Its Own Sake.
Have your assets grown? Has a spouse died? Have beneficiaries or decision-makers changed? Does your family still need the restrictions or administrative work built into the old arrangement?
Tax planning should be considered alongside the survivor’s access and the inheritance you want loved ones to receive.
A review can help distinguish provisions worth keeping from decisions that need attention. Start with the purpose, then examine the mechanics.
YOUR NEXT STEP
Bring the Plan You Have and the Questions You Have Now.
Start with the free educational download below. Its thank-you page gives you immediate access and an invitation to discuss your own questions with our team.
Discuss whether a further review or update is appropriate and the proposed scope and investment if legal work is recommended.
YOUR QUESTION, ANSWERED
Can paying Estate Tax reduce my family’s capital-gains tax?
The Lowest Estate Tax Bill May Not Leave Your Family With the Most Money.
Yes—in some circumstances. Keeping appreciated property in your estate may preserve a basis adjustment at death that reduces your beneficiaries’ capital-gains tax when they sell. That future saving can exceed the additional Estate Tax caused by retaining the asset.
Cost basis is generally the starting amount used to calculate taxable gain, adjusted for items such as improvements and depreciation. Many inherited assets receive a basis reset to their value at death. If that value is higher than the old basis, people call it a “step-up.” If it is lower, the adjustment can be a step-down.
Paying Estate Tax does not itself purchase a step-up. Qualifying inherited property can receive a basis adjustment even when no Estate Tax is payable. The comparison is between planning alternatives: what happens to both taxes if you keep, give away, or restructure the asset?
A REAL IRS RULING. A PLANNING LESSON.
The IRS Confirmed Why Moving an Asset Out Can Have a Cost.
In Revenue Ruling 2023-2, the IRS considered appreciated property transferred as a completed gift to an Irrevocable Grantor Trust. The creator remained the owner for income-tax purposes, but the property was outside the creator’s federal gross estate.
Under those facts, the property did not receive a basis adjustment when the creator died. Paying the Trust’s income taxes during life did not change that outcome.
The lesson is not that every Irrevocable Trust loses a step-up. It is that a strategy designed to exclude property from an estate must also be evaluated for its effect on basis. Massachusetts Estate Tax treatment alone does not establish eligibility for the federal basis adjustment.
THE TOTAL-TAX COMPARISON
Compare the Family’s Total Tax Cost—not One Bill in Isolation.
Calculation illustration—not a client story or a tax-rate quote: assume an asset has a $200,000 adjusted basis and is worth $1 million at death. Assume a completed lifetime gift leaves the recipient with the $200,000 basis. A later sale for $1 million would then produce an $800,000 gain.
At an assumed combined capital-gains tax rate of 25%, that gain produces $200,000 of tax. If instead the asset qualifies for a basis adjustment to $1 million at death and is sold for that amount, there is no gain on the pre-death appreciation in this simplified comparison.
Now assume retaining that asset causes $80,000 of additional Estate Tax. Paying that additional $80,000 to avoid $200,000 of capital-gains tax leaves the family $120,000 ahead in this illustration. These assumed amounts are not a calculation of Massachusetts tax or anyone’s actual liability.
The comparison can reverse when appreciation is small, Estate Tax is high, or the family does not expect to sell. Federal and state rates, sale timing, future growth, available cash, and other planning goals matter. Traditional IRAs and other income-in-respect-of-a-decedent assets do not receive this same step-up treatment.
YOUR NEXT STEP
Ask Which Approach Leaves Your Family Better Off Overall.
Start with the free educational download below. Its thank-you page gives you immediate access and an invitation to discuss your own questions with our team.
Discuss whether a further analysis should compare the additional Estate Tax with the capital-gains tax a basis adjustment could save. The goal is preserving more for your family while respecting your need for access, control, and protection.
IN A REVIEWER’S OWN WORDS
A Process You Can Understand
★★★★★ 5-Star Google Review
“Boyd & Boyd takes the time to walk you through the entire process of creating the trust that is best for you.”
— Edward Breen
Review excerpts reflect individual experiences and do not guarantee an outcome for another family.
IN A REVIEWER’S OWN WORDS
Clarity Before the Next Decision
★★★★★ 5-Star Google Review
“Everyone was extremely helpful during the entire process and we feel confident that we have a sensible and comprehensive estate plan.”
— Pamela Gordon
★★★★★ 5-Star Google Review
“There was so much information. I was very impressed and am very excited to have my consultation.”
— Pam Hart
Review excerpts reflect individual experiences and do not guarantee an outcome for another family.
IN A REVIEWER’S OWN WORDS
Working With an Experienced Team
★★★★★ 5-Star Google Review
“Keats is a wonderful lawyer and really knows his field. He and his staff have been delights to work with.”
— Sara Waters
Review excerpts reflect individual experiences and do not guarantee an outcome for another family.
IN A REVIEWER’S OWN WORDS
Confidence in Trust Decisions
★★★★★ 5-Star Google Review
“After attending again this year, I feel much more confident in my trust decisions.”
— Elaine Gerlt
Review excerpts reflect individual experiences and do not guarantee an outcome for another family.
IN A REVIEWER’S OWN WORDS
Responsive Answers
★★★★★ 5-Star Google Review
“They were immediately responsive and explained all we needed to know.”
— Bob
Review excerpts reflect individual experiences and do not guarantee an outcome for another family.
IN A REVIEWER’S OWN WORDS
Time for Your Questions
★★★★★ 5-Star Google Review
“Very thorough presentations. Took time to answer all questions.”
— Tabetha Avtges
Review excerpts reflect individual experiences and do not guarantee an outcome for another family.
IN A REVIEWER’S OWN WORDS
Planning for the Next Generation
★★★★★ 5-Star Google Review
“He has helped us establish and understand the trusts we need to ensure the best for our sons”
— Nelson Frew
Review excerpts reflect individual experiences and do not guarantee an outcome for another family.
IN A REVIEWER’S OWN WORDS
Answers Before a Tax Decision
★★★★★ 5-Star Google Review
“They were immediately responsive and explained all we needed to know.”
— Bob
Review excerpts reflect individual experiences and do not guarantee an outcome for another family.
Your Family at the Center. Our Team Beside You.
F. Keats Boyd III and Whitney N. Tashjian help families connect Estate Tax Planning with the people and priorities behind their wealth. At Boyd & Boyd, P.C., the conversation begins with your spouse’s security, the inheritance you want to leave, and a plan your family can use.
Questions and Answers
Will my family owe Massachusetts Estate Tax?
For deaths in 2026, the federal Estate Tax basic exclusion is $15 million. Massachusetts has a much lower threshold: its return-filing test generally applies when the gross estate plus adjusted taxable gifts exceeds $2 million.
What counts toward the Massachusetts Estate Tax threshold?
The Estate Tax inventory can include real estate, retirement accounts, investments, business interests, and includible life insurance proceeds. It can also include property passing outside Probate.
Do married couples automatically get a $4 million Massachusetts exemption?
Massachusetts does not provide the federal-style portability election that transfers a deceased spouse’s unused exclusion to the survivor. Do not assume marriage alone produces a combined $4 million Massachusetts exemption.
Does a Living Trust avoid Massachusetts Estate Tax?
A Revocable Living Trust does not, by itself, remove its assets from your taxable estate. You generally retain control, and that retained control matters to Estate Tax inclusion.
Can Massachusetts Estate Tax apply if I live in another state?
Yes. A nonresident who owns or transfers Massachusetts real estate or tangible personal property can have a Massachusetts Estate Tax filing obligation.
Should I give assets to my children now to reduce Estate Taxes?
Lifetime gifts can be part of Estate Tax planning, but a gift should be evaluated alongside your own financial needs, control of the property, gift-reporting rules, and the recipient’s future tax consequences.
Should I review a plan written before the Massachusetts tax law changed?
A review may be worthwhile, especially if your plan uses tax formulas, contains marital Trust provisions, or was written when Massachusetts had a threshold.
Can paying Estate Tax reduce my family’s capital-gains tax?
Yes—in some circumstances. Keeping appreciated property in your estate may preserve a basis adjustment at death that reduces your beneficiaries’ capital-gains tax when they sell. That future saving can exceed the additional Estate Tax caused by retaining the asset.
Before You Contact Our Team
Is this only for families who live on Cape Cod?
No. We assist families nationwide, including families with Massachusetts property. Families outside Massachusetts may come to our office to sign, or we may work with co-counsel licensed in their home state. The arrangement depends on the work and the applicable state’s requirements.
Do I need to choose a tax strategy before calling?
No. Start with your family, your assets, and your question. An appropriate strategy depends on your circumstances, ownership, existing plan, and the applicable rules.
Can I discuss a Will or Trust I already have?
Yes. Tell our team when it was prepared and what has changed. Discuss whether a further review is appropriate before deciding that your plan needs an update.
Is the Estate Planning Strategy Session free?
Yes. You can request a free Estate Planning Strategy Session. Legal work beyond the session requires a separate engagement.
YOUR NEXT STEP: A FREE EDUCATIONAL DOWNLOAD
Understand the Decisions Before You Make Them.
Prepare better questions about the taxes that may affect what your family keeps.
Get Is Your Estate Plan a Tax Time Bomb?, an August 2025 seminar presentation. Use it to recognize the questions you want answered about your family’s circumstances.
A Clearer Conversation Starts With Better Questions.
See which planning decisions deserve your attention. Put names to the concerns you want to address. Arrive at your next conversation ready to explain what matters to your family.
Enter your name and email on the next page. Your thank-you page provides immediate PDF access and an invitation to a free Estate Planning Strategy Session. Any legal work requires a separate engagement.
1555 Iyannough Road, Unit 1BW • Hyannis, Massachusetts 02601
(508) 444-9688 • plan@boydandboydpc.com
© 2026 Boyd Boyd, P.C.
General information only. Legal advice depends on your circumstances and an attorney-client engagement.