Archive for the ‘Estate Taxes’ Category

Avoiding a Tax Bomb on Proceeds from a Life Insurance Policy

Monday, June 8th, 2015

Life insurance is a contract entered into between a policy holder and an insurance company. Specifically, the life insurance policy holder makes set payments to the insurance company in exchange for the promise that the company will pay a designated sum of money to a beneficiary in the event that the policy holder passes away. All Massachusetts residents are subject to a state estate tax if their estate is valued over $1 million.

Your estate includes all of the property you own, including tangible personal property (your “stuff”), intangible personal property (bank accounts, IRAs, 401Ks, business interests, etc), and real property as well as any proceeds from a life insurance policy. Because the proceeds on a life insurance policy can be in the hundreds of thousands and even millions of dollars, these proceeds exponentially raise the value of your estate and the tax bomb that your estate faces. (more…)

Does Massachusetts Have an Estate Tax?

Monday, November 11th, 2013

Yes.  Massachusetts has an estate tax.  If you are feeling motivated here is the Massachusetts Department of Revenue Guide to the estate tax http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/estate-tax-information/estate-tax-guide.html. (more…)