Inheritance tax planning is important so you can make certain that the legacy you wish to leave behind for your loved ones is not adversely impacted by a high tax bill. When you leave an inheritance to your family, to friends, or to charities, you want to make certain that the money you have provided is actually used by those who you left it to. You don’t want to lose thousands, or even hundreds of thousands to the Internal Revenue Service or to the state of Massachusetts.
To make certain that you understand taxes which will be triggered by your death, you should talk with a Massachusetts inheritance tax planning lawyer. The Law Offices of James A. Miller understands the federal rules for taxation of an inheritance, as well as the rules within the state of Massachusetts.
We can advise you on how to structure your estate plan so you can reduce the taxes that might be due or so you can eliminate your tax liability altogether. We can also debunk some of the common myths that may arise about the inheritance tax rules when property is left to loved ones.
Myths about Inheritance Tax Planning
Lots of people have received incorrect or incomplete info about inheritance tax planning, which can cost them. You need to know the truth about some common myths including:
- Myth: Inheritance and estate taxes are the same thing: Inheritance taxes are paid by the beneficiary and are usually based on who the beneficiary is and how the beneficiary inherits. Estate taxes are paid by the estate and are based on the value of the estate. Massachusetts has estate taxes, but not inheritance taxes. The Massachusetts Department of Revenue explains.
- Myth: Federal and state laws on inheritance tax are the same. The federal government taxes estates at different amounts than Massachusetts and has different rules for which states are exempt. Massachusetts could impose estate taxes even when the federal government does not.
- Myth: Inheritance taxes always have to be paid. The truth is, taxes are only assessed in certain circumstances and, with the right legal help, you may be able to avoid them entirely.
There is lots more to know about inheritance tax planning, and fully understanding the rules for the taxation of estates can be very difficult. You should consult with a Massachusetts inheritance tax planning lawyer in order to get comprehensive legal help from an experienced attorney who knows tax rules inside-and-out and who can do everything possible to minimize tax liability.
Why You Need Help with Inheritance Tax Planning
Knowing the truth about inheritance tax and estate tax is vital, but you also need to understand how different legal tools can help shield your estate from tax liability. Some people make inheritance tax planning mistakes, such as assuming that all assets which transfer outside of probate are not going to count for determining if taxes are charged on estate assets. You cannot afford to make this error, or to make any other mistakes when it comes to avoiding a high tax bill that is triggered upon your death.
Without the right tax planning, your legacy could be at stake… especially if you are leaving your loved ones assets like a family farm or business. When the bulk of your estate is made up of illiquid assets that you don’t want heirs to sell, there may not be enough cash to pay tax bills. This could leave your loved ones vulnerable to the loss of their legacy if assets have to be sold. You should get proper legal help to ensure this does not happen and that your estate will be protected.
Getting Help from An Inheritance Tax Planning Lawyer
The Law Offices of James A. Miller can offer you invaluable assistance with the inheritance tax planning process. In addition to helping ensure you understand the truth about how you death will trigger taxes, we can also assist you in determining what legal tools can best help to protect your wealth.
You can download a free estate planning worksheet to discover more about the ways in which inheritance tax planning can be completed and about the circumstances under which tax planning becomes necessary. You can also give us a call at 866-370-3888 or contact us online to discover how a Massachusetts inheritance tax planning lawyer can help you. Call now to get started on protecting and preserving the financial security of your beneficiaries or heirs by making a solid plan to address taxes after your death.
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