Planning for Life

Is Anyone Entitled to an Inheritance?

Posted by Harry S. Margolis on November 30, 2016

By Harry S. Margolis

David Karofsky of the Transition Consulting Group, who advises family businesses on succession planning, recently wrote about cases of entitlement he has run across in his business and elsewhere. They include:

The woman who was overheard talking on her cellphone about her father who had more than enough money with his three houses. She and her siblings, she said, had to take control of his finances so that he did not "waste" them before they got passed down to her generation.

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Topics: estate taxes, Estate Planning

What Does a Trump Presidency Mean to Estate and Long-Term Care Planning?

Posted by Harry S. Margolis on November 22, 2016

By Harry S. Margolis

The election of Donald Trump along with Republican control of both houses of Congress undoubtedly will impact tax and benefit laws that affect citizens in their personal lives and in their estate and long-term care planning. The question is how? We can't answer for certain since during his campaign the president-elect stayed away from specific policy proposals. But there's still a lot we can glean both from what he has said and from Republican policies, especially those of Speaker of the House Paul Ryan. On the domestic front, Ryan appears much more radical than Trump in many ways.

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Topics: Medicare, Medicaid, MassHealth, estate taxes, capital gains, capital gains taxes, social security

The Massachusetts Estate Tax on Out-of-State Real Estate: Conflict, Quandary, and New Court Ruling

Posted by Harry S. Margolis on November 22, 2016

By Harry S. Margolis

If a Massachusetts resident dies owning real estate outside of the state or the country, can Massachusetts tax it in your estate? If you look at Massachusetts law, the answer is "yes." This is because the Massachusetts estate tax is calculated as the federal estate tax credit that was available under the federal estate tax in place back in 2000. Since the federal taxable estate includes all the decedent's property wherever held, the Massachusetts tax does as well.

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Topics: Probate Estate Administration, estate taxes

Explaining the Inexplicable: The Massachusetts Estate Tax and Gifting

Posted by Harry S. Margolis on November 17, 2016

By Harry S. Margolis

As you may know, the threshold for taxing estates in Massachusetts is $1 million, much less than the current $5.45 million threshold for federal estate taxes. In addition, unlike the federal estate tax which only taxes the excess over the threshold, if an estate exceeds $1 million the entire amount above $40,000 is taxed. Fortunately, the rate is substantially less, ranging from 0.8% to 16%, whereas the federal rate is 40%.

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Topics: Estate Planning, estate taxes

Avoiding Massachusetts Taxes: So You Want  to Move to Florida?

Posted by Elizabeth Stepakoff on November 1, 2016

By Harry S. Margolis

If you've thought of establishing residence in Florida or another low-tax state to save on income and estate taxes, a recent New York state case sheds light on what steps you need to take. In the case of the Matter of Campaniello, the taxpayer, Thomas Campaniello had extremely high income, over $10 million in 2007, the year in question, including profits on the sale of real estate. This no doubt motivated him to seek to avoid New York state and city income taxes and motivated the New York tax authorities to go after him.

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Topics: estate taxes, Estate Planning

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