That house on the Cape, Martha's Vineyard, or in the Berkshires, what happens when the owner dies and is not a Massachusetts resident? Is it subject to the Massachusetts estate tax?
Yes.
And it's a bit complicated.
Read More
That house on the Cape, Martha's Vineyard, or in the Berkshires, what happens when the owner dies and is not a Massachusetts resident? Is it subject to the Massachusetts estate tax?
Yes.
And it's a bit complicated.
Read MoreTopics: Massachusetts, estate taxes, real estate
As in many states, towns in Massachusetts may allow low-income seniors to defer real estate taxes until their homes are sold or after they die. The towns may charge interest of up to 8% interest on these unpaid taxes, which can compound year after year. While some towns that offer this benefit charge no or low interest, three out of four charge the maximum of 8% per year. This can be a big surprise when the children ultimately inherits property that has been gutted in value.
That happened in a case reported in 2018 in The Boston Globe.
Read MoreTopics: seniors, housing policy ,, real estate, senior tax deferral
Have estate planning questions? If so, read: Get Your Ducks in a Row
