![]() ![]() This lien arises by operation of law, and continues until the estate tax liability is paid in full or until ten years from the date of death of the decedent, whichever is earlier. Lien - in general, a Massachusetts estate tax lien on all property included in the Massachusetts gross estate which arises at the date of death of every Massachusetts decedent and every non-resident decedent who owns real estate and tangible personal property located in Massachusetts. The purposes of this release are to provide a summary of the amendments and to answer the most common questions raised by these changes.įor purposes of this Technical Information Release, the following terms have the following meanings:Īlternate Valuation - the value of all property included in the decedent's gross estate at the alternate valuation date, which in general is six months after the date of decedent's death.Ĭode - the Internal Revenue Code of the United States, as amended and in effect on January 1, 1975, unless otherwise indicated.Ĭommissioner - the Commissioner of Revenue.Ĭredit - for estates of decedents dying on or after January 1, 1986, a credit of $1500, or the amount of the Massachusetts estate tax liability computed on the Massachusetts taxable estate, whichever is less.ĭomicile - the place which is an individual's true, fixed and permanent home, determined by established common law principles and the facts and circumstances in each case.Įxecutor - the person named in a will to execute the provisions of the will if there is no will, the administrator appointed by the probate court to settle an estate and if there is no executor or administrator appointed, any person in actual or constructive possession of any property of the decedent who is charged with filing the estate tax return and paying the tax.Įxemption - for estates of decedents dying on or after January 1, 1986, if the Massachusetts net estate is $200,000 or less, there is an exemption equal to the Massachusetts net estate but if the Massachusetts net estate is greater than $200,000, there is no exemption.įair Market Value - the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts.įederal Gross Estate - the gross estate as defined under the Code, except that for estates of decedents dying on or after January 1, 1986:ġ) notwithstanding Code § 2035, the gross estate includes the value of all property in which the decedent had an interest and made a transfer by trust or otherwise within three years of death except whereĪ) a bona fide sale for adequate and full consideration is made, orī) the value of the property transferred to any donee is $10,000 or less during the calendar year, andĢ) notwithstanding Code § 2040, the gross estate includes one-half of the value of any property held by the decedent and spouse as joint tenants or as tenants by the entirety, where the decedent and spouse are the only joint tenants. Certain sections of the new legislation apply to estates of decedents dying on or after January 1, 1986, and others are effective upon passage of the legislation on December 31, 1985. Later amendments to the federal estate tax law do not apply to the Massachusetts estate tax law, except when federal provisions have been specifically incorporated by Massachusetts legislative amendment.Ĭhapter 711 of the Acts of 1985 substantially revised the Massachusetts estate tax law for the first time in ten years and adopted certain provisions of the Code as amended and in effect on January 1, 1985. ![]() The Massachusetts estate tax law is patterned after the Internal Revenue Code (Code), as amended and in effect on January 1, 1975. It applies in general to the estates of decedents who are Massachusetts residents at the date of death and to the estates of non-resident decedents who own real and tangible personal property located in Massachusetts at the date of death. The Massachusetts estate tax is a transfer tax imposed on the value of all property in the estate of a decedent at the date of death, and not on the value of property received by each beneficiary. ![]() was enacted in 1975 and is applicable to all estates of decedents dying on or after January 1, 1976. ![]()
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