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Page 22 THE REVERE ADVOCATE – FRIDAY, MAY 23, 2025 By Bob Katzen If you have any questions about this week’s report, e-mail us at bob@beaconhillrollcall.com or call us at (617) 720-1562 GET A FREE SUBSCRIPTION TO MASSTERLIST — Join more than 30,000 people, from movers and shakers to political junkies and interested citizens, who start their weekday morning with MASSterList—the popular newsletter that chronicles news and informed analysis about what’s going on up on Beacon Hill, in Massachusetts politics, policy, media and infl uence. The stories are drawn from major news organizations as well as specialized publications. MASSterList will be e-mailed to you FREE every Monday through Saturday morning and will give you a leg up on what’s happening in the blood sport of Bay State politics. For more information and to get your free subscription, go to: www.massterlist.com THE HOUSE AND SENATE: Beacon Hill Roll Call records local representatives’ votes on roll calls from recent House sessions debating the $61.47 billion fi scal year 2026 House version of the state budget. There were no roll calls in the House or Senate last week. CONSOLIDATED HOUSING, JUDICIARY AND PUBLIC SAETY AMENDMENT (H 4000) House 154-2, approved a consolidated amendment adding $10.5 million in funding to Housing, Judiciary and Public Safety programs in the $61.47 billion fi scal year 2026 state budget. Much of the funding was for projects and programs proposed by individual representatives for their local districts. “This amendment under529 PLANS AS AN ESTATE PLANNING VEHICLE O ne of the advantages of a Section 529 plan is that to the extent a parent or grandparent funds it, the monies then held in the 529 plan are not included in the estate of the parent or grandparent. Furthermore, the parent or grandparent would still maintain control over the account itself if they are the named Custodian of the account. In fact, the parent or grandparent has the right to ask for a return of the funds contributed to the 529 plan. A parent or grandparent can gift up to $19,000 per year per person without reducing the maximum federal estate tax/ gift tax exemption amount (currently $13.9million for each taxpayer). Some parents or grandparents may be reluctant to make an irrevocable gift because they might feel they might need that money someday. A husband and wife can “split gift” and transfer $38,000 per year per individual. The $38,000 qualifi es for the annual “tax free” per donee gift. Keep in mind Massachusetts does not have a gift tax. A taxpayer can gift as much as he or she wants to a child or grandchild and not be concerned about a Massachusetts gift tax. Therefore, a parent or grandparent can subsequently change his or her mind and take the money back. If that were to happen, then the monies taken back fall back into the “gross” estate of the parent or grandparent. In addition, any withdrawal not used for the benefi ciary’s qualifi ed education expenses subjects the “earnings” to income tax and a 10% penalty. One great feature of a 529 plan is that a parent or grandparent can “frontload” the contributions by gifting 5 years worth of the $19,000/donee/ year tax-free gift exclusion amount, or $95,000, into a 529 plan for one son or grandson. If both parents or grandparents join in on the gift, the amount that can be funded each year into a 529 plan for each son or grandson then jumps to $190,000. If the parent or grandparent dies prior to the end of the fi veyear period, the contributions to the 529 plan allocated to the years after death would be included in their “gross” estate. The power of a Section 529 plan cannot be overestimated. Even if the estate is nowhere near the federal exemption amount, one might still stand to save a lot of money in Massachusetts estate taxes. The fi ling threshold is now $2million for taxpayers dying in Massachusetts on or after January 1, 2023. If someone were to die having a “gross” estate of $1,999,000, having previously gifted away to children and/ or grandchildren to establish 529 plans $760,000 ($190,000 to each of 4 children and/or grandchildren), an estate tax return would not have to be fi led because you do not have to add back these “non taxable” gifts to the “gross” estate to determine if you have met the $2million threshold for fi ling a Massachusetts estate tax return. Therefore, you would not even have to pay any estate tax on the $1,999,000 remaining in your estate. In fact, even taxable gifts (i.e. gifts over the $19,000 per donee tax free gifts) do not have to be added back to your gross estate upon your death to determine if your gross estate exceeds $2million. The $19,000 annual gift allowance is simply not a “taxable” gift. It is a “tax free” gift and for federal estate tax purposes and does not reduce your $13.9million federal estate tax exemption. Once a Massachusetts estate tax return is required to be fi led, only the excess over $2million is actually subject to tax as a result of the $199,600 tax credit provided by the state. That number is the Massachusetts estate tax on the fi rst $2million of taxable estate. Joseph D. Cataldo is an Estate Planning/Elder Law Attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a Master’s Degree in Taxation. scores our values by investing in a wide range of housing line items that will help keep our residents housed, support our public housing authorities and provide tools to help residents during transitional times,” said Rep. Richard Haggerty (D-Woburn), House chair of the Housing Committee. “Housing is a huge component to our state’s longterm economic success and making sure people have a safe, aff ordable place to live is critically important.” Reps. Marc Lombardo (RBillerica) and Nick Boldyga (R-Southwick), the only two members to vote against the amendment, did not respond to repeated requests by Beacon Hill Roll Call asking them why they opposed the amendment. (A “Yes” vote is for the amendment. A “No” vote is against it.) Rep. Jessica Giannino Yes Rep. Jeff Turco Yes CONSOLIDATED ENERGY, ENVIRONMENTAL AND FOOD ASSISTANCE AMENDMENT (H 4000) House 154-3, approved a consolidated amendment adding $5.8 million in funding to Energy, Environmental and Food Assistance programs in the $61.47 billion fi scal year 2026 state budget. Much of the funding was for projects and programs proposed by individual representatives for their local districts. “[The amendment] makes important investments in the environment, including over $85 million for the Department of Environment Protection and over $160 million for the Department of Conservation and Recreation to support clean water and our parks and natural resources,” said amendment sponsor Rep. Christine Barber (DSomerville), House chair of the Committee on Environment and Natural Resources. “Funding for the Department of Energy Resources builds in a new line item to directly support the objectives of the Climate Bill without adding to assessments that are passed on to the residents of the commonwealth.” Barber continued, “There are also significant investments in addressing food insecurity in the commonwealth — funding for Emergency Food Assistance is increased by $13 million to bring this line item to $55 million. In a time when the federal government is actively rolling back protections and damaging the environment, these financial investments continue to protect the commonwealth’s invaluable natural resources, coastlines and waterways, open spaces, wildlife and recreation areas and extend our imperative to address the urgency of climate change.” Reps. Marc Lombardo (RBillerica), Nick Boldyga (RSouthwick) and John Gaskey (R-Carver), the only three members to vote against the amendment, did not respond to repeated requests by Beacon Hill Roll Call asking them why they opposed the amendment. (A “Yes” vote is for the amendment. A “No” vote is against it.) Rep. Jessica Giannino Yes Rep. Jeff Turco Yes CONSOLIDATED LABOR AND ECONOMIC DEVELOPMENT AMENDMENT (H 4000) House 154-3, approved a consolidated amendment adding $25 million in funding to Labor and Economic Development programs in the $61.47 billion fi scal year 2026 state budget. Much of the funding was for projects and programs proposed by individual representatives for their local districts. “The amendment demonstrates the commitment the House has in investing in local economic development projects and supports the many BEACON | SEE Page 24

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