The House just released its much anticipated tax relief package. Below are some links to some media coverage and snippets from that coverage relating to the estate tax. Old Colony Law will continue to post updates as details become available.
The proposal would also double the state’s death tax threshold to $2 million and eliminate the so-called cliff effect, whereby an entire estate is taxed the moment it’s eligible for the tax. That’s a full $1 million less than the change to the estate tax offered by Healey.
The House’s bill pitches raising the estate tax threshold from $1 million to $2 million and would tax only the value of an estate that exceeds $2 million, and not the entire estate as the law currently requires. Only one other state, Oregon, has a threshold as low as $1 million for the estate tax, and Oregon only taxes the values above that amount. That makes Massachusetts’ estate tax the most stringent in the country.
Healey’s plan, meanwhile, would effectively eliminate the tax on estates valued at up to $3 million, through a tax credit.
This post is a part of Old Colony Law’s Estate Tax Updates.