Estate Planning | Estate Tax Planning
Our Cambridge estate tax planning lawyers are experienced and knowledgeable in all aspects of estate tax planning and have compiled the following information. In addition to ensuring that their final wishes are carried out and that their loved ones are cared for, many people are also curious about potential tax consequences. In estate planning there are three types of taxes that can affect a plan:
- Federal and state estate taxes
- Generation skipping transfer tax
- Gift tax
In general terms, the federal and state estate taxes impose a tax on the value of one’s estate. If the “taxable estate” exceeds a certain amount, there will likely be some tax due. The generation skipping transfer tax is a hidden tax that is often overlooked when making gifts to grandchildren or later generations. Finally, the gift tax imposes a tax payable by the donor on all gifts that exceed the annual exemption amount.
Your estate planning questionnaire will allow us to determine any potential tax issues and present various options on how to handle them in your estate plan. If you think your estate might be subject to Massachusetts or federal estate tax it is essential to plan as soon as possible to make sure that your plan will reduce any taxes and has the maximum positive effect.
Please contact our estate tax planning attorneys today at 781-674-2562 to speak with a Cambridge estate tax planning lawyer about your estate and potential tax consequences.