Estate Tax Elimination or Reduction

The federal estate tax exemption for 2023 is $12.92 million per person, so fewer estates are subject to federal estate tax anymore. Massachusetts, however, has only a $1 million exemption per person from state estate tax. Surprisingly, even for those who do not consider themselves wealthy, this $1 million threshold can be easily reached resulting in Massachusetts estate tax if you do not have proper estate planning. Life insurance, retirement accounts, real estate and bank accounts are all taken into consideration when calculating estate tax.