THE EVERETT ADVOCATE – FRiDAy, NOVEmbER 10, 2023 Page 17 Non-Massachusetts Resident Taxable Estate T he Massachusetts gross estate for purposes of calculating a Massachusetts estate tax that might be due for a nonresident decedent is calculated the same way as the gross estate is calculated for a Massachusetts resident. The estate tax liability of a nonresident decedent is simply based on the percentage of real property and tangible personal property located in Massachusetts in relation to the entire estate of the nonresident decedent. This is per Massachusetts General Laws Chapter 65C, Section 4. If you are a Florida resident and have a vacation home, rental property or tangible personal property such as a boat located in Massachusetts with a total value of $1million and your gross estate is $5million, the Massachusetts preliminary estate tax under the new tax law with a now $2million exemption would be $280,800. This is also assuming deductions have been taken on the estate tax return in the amount of $100,000. If you divide $1million by $5million, or $20%, and multiply that figure by $280,800, you arrive at a final estate tax due to the Commonwealth of Massachusetts in the amount of $56,160. This is why Massachusetts nonresidents will often transfer Massachusetts real estate into an LLC in order to convert the ownership into personal intangible property and not have the real estate included as part of the calculation of the Massachusetts taxable estate. Even ownership of a boat could be transferred to an LLC. Additionally, the membership interest(s) in the LLC can be transferred into a living trust in order to avoid probate in the event of the member’s death. This is set forth in Estate of Henry L. Nielson v. Commissioner of Revenue, Appellate Tax Board Docket No. F232365 (Mass. App. Tax Bd. February 15, 2001). Keep in mind that if you are a non-Massachusetts resident, live in a state that does have an estate tax, and you do have real estate located in Massachusetts resulting in a Massachusetts estate tax upon the death of the decedent, Massachusetts does not allow for a foreign death tax credit based upon state estate taxes assessed on that Massachusetts real estate by the state that you are residing in. Massachusetts residents should contact their state representative or state senator to push for Massachusetts portability. The federal government provides for portability. This would mean that if a husband dies and leaves his half of the total marital estate of $4,000,000 to his wife, without any complicated trust planning, his wife would have the benefit of not only her $2million exemption, but that of her husband’s. If she subsequently dies with a $4million estate, no Massachusetts estate tax would be due. With no trust planning, and no portability option available, upon the wife’s subsequent death with a $4million estate, the Massachusetts estate tax will be $180,800. Quite a big difference. 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. ~ House For Sale ~ 12 Myrtle St., Everett LaRovere Real Estate Great opportunity to own a single-family house in quiet residential neighborhood. Estate Sale. Single Family Residence 3 bedroom, 1 full bathroom, Natural Gas heating, Central Air, with Vinyl Siding. Open House - Sunday, 11/12/23 - 12 pm to 2:00 pm. For more information or to schedule a private showing, contact us at 617-387-9700 or email Michael@larovere.com City of Everett Conservation Commission Everett City Hall, Room 40 484 Broadway Everett, MA 02149 Carlo DeMaria Jr., Mayor Jon E. Norton Chairman Phone: 617-394-5004 FAX: 617-394-5002 LEGAL NOTICE The Everett Conservation Commission will hold a public hearing on Thursday, November 16, 2023, at 7 PM pursuant to the Wetlands Protection Act, M.G.L. 131 c40. The hearing will include consideration of a Request for a Determination of Applicability (RDA) by Diane Mikovsky of Site Centers, for the replacement of a water meter at the existing Gateway Mall Facility at 16 Mystic View Road. Said hearing will be held in the George Keverian Meeting Room, City Hall, 484 Broadway, Everett, MA 02149. To view application and related plans, contact the Conservation Agent Tom Philbin 617-309-8038. Jon E. Norton Chairman Everett Conservation Commission November 10, 2023 For Advertising with Results, call The Advocate Newspapers at 617-387-2200 or Info@advocatenews.net
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