In an effort to provide you with the latest estate planning news –
Two bills were introduced to the Massachusetts State Senate which, if enacted, will change the Massachusetts Estate Tax laws.
The first bill, S.1631, entitled “An Act to Mitigate Snowbird Relocation”, would increase the state estate tax exemption from the current $1 million to $2 million. Additionally, the tax rates are to be adjusted to make it a “tax neutral” law.
The second bill, S.1681, entitled “An Act for a Uniform Estate Tax”, is a more detailed piece of proposed legislation. Like S. 1631, it would double the current exemption level to $2 million, but would also be adjusted by the Consumer Price Index. In addition, the bill allows for transferring any of a predeceased spouse’s unused exemption to the surviving spouse – called portability.
We will keep you posted as to the status of these bills.
As a reminder – these are only bills. They are both currently in the Joint Committee on Revenue. There is a long way to go prior to changes being made to the Massachusetts estate tax rules, if any actually happens.