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THE EVERETT ADVOCATE – FRiDAy, NOVEmbER 6, 2026 Page 15 OBITUARIES Estate Taxes In Massachusetts T he current Massachusetts estate tax exemption is $2million. At least Massachusetts has doubled the exemption from $1million to $2million effective for decedents dying on or after January 1, 2023. The problem is the Massachusetts estate tax is leading many taxpayers to flee the Commonwealth in order to settle in a state that has no estate tax and even no income tax. The current federal gift tax and estate tax exemption is $15million. This figure will be adjusted annually for inflation. If a married person dies and does not use this exemption during his or her lifetime, the exemption is in effect given to the surviving spouse for him or her to use, thereby providing for a total exemption of $30million. This is referred to as “portability”. Massachusetts does not allow for any “portability” provisions. For federal purposes, in order to take advantage of portability, a federal estate tax return would have to be filed on behalf of the first spouse to die, even if no estate tax is due. The decedent’s unused estate tax exemption is then passed to the surviving spouse. If the first spouse to die left everything to the surviving spouse and the surviving spouse subsequently died with a $30million estate, no federal estate tax would be due. Gifting low-cost basis assets or cash either to children, grandchildren or irrevocable gifting Trusts can serve to reduce the Massachusetts taxable estate and save on estate taxes. There is no gift tax in Massachusetts. Also, you do not have to add back “taxable” gifts when calculating the Massachusetts taxable estate. Massachusetts goes by line 3 on the federal Form 706 (1999 Revision date) which is the taxable estate “before” adding back taxable gifts. A taxable gift is a gift in excess of the $19,000 per doner annual gift tax exclusion. For federal purposes, taxable gifts are not really relevant when an individual’s gross estate is much less than the $15million exemption. Consequently, a taxpayer with a net worth of $4million all in cash can give all of that money away to children with no gift tax to be paid in Massachusetts, and since the federal gift tax exclusion is $15milion, no federal gift tax would have to be paid. Fay Marie Renaud Ritcey O f Por t S ain t Lucie, FL, formerly of Everett and Westwood, a devot - ed mother, Filing a gift tax return technically is required but from a practical standpoint is entirely irrelevant. The federal gift tax exemption and estate tax exemption is unified, meaning you can either give $15million away during your lifetime or die and bequeath $15million away upon your death and pay no federal tax, but you do not have the benefit of being able to double up on the exemption amount. Often, it is more advantageous to provide for low-cost basis assets such as appreciated real state or stocks to be included in your taxable estate in order to achieve the step up in cost basis equal to the fair market value of the assets upon your death. This ends up eliminating or greatly reducing the capital gains tax upon a subsequent sale by your children. The federal capital gains tax rate can be as high as 23.8% and the Massachusetts capital gains tax rate would be 5%, for a total tax rate of 28.8%. To the extent depreciation has been claimed on rental real estate, the amount of depreciation taken would actually result in that portion of the capital gain being taxed federally at 25%. This is called depreciation recapture. Therefore, the total future capital gains tax paid could be a lot higher than the Massachusetts estate tax paid on the appreciated assets if included in the taxable estate. Gifting cash or high-cost basis assets in the eleventh hour can certainly result in a substantial savings in Massachusetts estate taxes. A high-cost basis asset might be a common stock that has not appreciated in value. There is no built-in gain to worry about a child paying a sizable capital gains tax after you pass away. In this situation, the step up in cost basis is irrelevant. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. grandmother, great-grandmother, sister, aunt, and friend, passed away peacefully on October 16, 2026, at 94 years old. Born on April 11, 1932, in Brunswick, ME, she was the daughter of William and Flora Bell Renaud. At age six she moved to Everett, where she later met and married the late Ralph J. Ferrara and raised her family surrounded by love, faith, and music. She is survived by her son, Ralph J. Ferrara Jr. and his wife, Beth, of Westfield; her sister, Carol J. Kerr and her late husband, Duncan, of Saugus; three grandchildren, Carmen Ferrara and his wife Kate of Canton, Shayne Ferrara and his wife Sarah of Hingham, and Jessica Ferrara of Westfield; and six great-grandchildren, William, Claire, Daniel, Sadie, Beau, and Ryder, each of whom brought her immense pride and joy. She is also survived by John Covino, a cherished family cousin; Vana Kinchen, a dear friend who lovingly cared for Fay; Pastor John Paul, her friend and pastor at Port Saint Lucie Bible Church; and many other relatives and friends. She was predeceased by her daughter, Sharon Eastham, and Sharon’s husband, Paul, and her siblings Roberta, Richard and Keith. A lifelong caregiver, Fay helped raise her grandchildren, worked as a family nanny, and cared for the elderly well into her later years, often looking after fellow church members in need. In 1995 she moved to Florida, where she was a devoted member of Port Saint Lucie Bible Church and enjoyed a full life of friends, faith, and service to others, as well as time outdoors. Her children, grandchildren, and later her great-grandchildren loved visiting sunny Florida to see “Great Nanny.” Fay loved country music and reading. Her cheerful spirit was a gift to everyone who knew her. She will be remembered for her faith, her hard work, and her unwavering devotion to family and friends. Relatives and friends are invited to attend a visitation at the J.F. Ward Funeral Home, 772 Broadway, Everett, on Tuesday, November 3rd, at 11 am, followed by a funeral service in the funeral home at 12 pm. Services will conclude with interment in Woodlawn Cemetery, Everett. In lieu of flowers, memorial donations in Fay’s memory may be made to Port St. Lucie Bible Church @ https:// www.pslbiblechurch.org Home of the Week Welcome Home to 14 Arrowhead Drive! Offered at $1,499,900.00 Berkshire Hathaway HomeServices Commonwealth Real Estate Formerly Carpenito Real Estate SAUGUS - WHAT YOU HAVE BEEN WAITING FOR - INDIAN ROCK FARMS AT ITS BEST! Impressive Contemporary style home boasting 12 rooms, 5 bedrooms, 3 1/2 baths, 4 fireplaces, amazing kitchen offers curved island with seating, fireplace and circular dining area with wall of windows, convenient 1st floor laundry, spacious fireplace living room open to entertainment size dining room, 1st floor great room with newer hickory flooring, fireplace with wood stove insert, crown molding and newer slider to private balcony with awning, desirable 1st floor primary suite with newer hickory flooring, massive, private bath with double sink vanity, whirlpool tub, walk-in shower and toilet room, curved stairway to second floor which offers 3+ bedrooms, full bath and additional laundry hook-up. Finished lower level includes fireplace den open to kitchen area, full bath with laundry hook-up and bedroom all with newer laminate flooring - wonderful, additional living space with separate entrance, two electric panels and meters. Two car attached garage leading to beautiful, heated breezeway with double atrium doors to pavers deck with awning. Fantastic yard with in-ground pool heated by propane gas, newer vinyl fence and storage shed, irrigation system. Three year old, top-of-the-line Mitsubishi electric heat pump, newer front windows and sliding glass doors. You will fall in love - Exceptional IN & OUT! (781) 233-7300 335 Central St. Saugus commonmoves.com ©2024 BHH Affiliates, LLC, An independently owned and operated franchisee of BHH Affiliates, LLC, Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Equal Housing Opportunity. Margaret “Peg” H. Bond O f Everett, embraced eternal rest on Sunday, November 1, 2026, at Massachusetts General Hospital in Boston after a brief illness. She was 91 years old. OBITUARIES | SEE PAGE 19

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