Monthly Archives: April 2025
How The 5 x 5 Rule Helps To Preserve The Value Of A Trust
Trusts can be extremely effective estate planning tools. It is not uncommon for people to put restrictions on trusts that are designed to protect the value. The 5 x 5 rule is a provision in trust law that allows a beneficiary to withdraw the greater of $5,000 or 5 percent of the trust’s assets… Read More »
Does The Massachusetts Estate Tax Count Out-Of-State Real Estate?
Massachusetts has its own estate tax. It covers many estates in the Commonwealth that do not have any federal estate tax liability. In 2023, lawmakers increased the Massachusetts estate tax exemption from $1 million to $2 million. As part of that reform, the law changed. Out of state real estate—which was previously exempt from… Read More »
Bill To Repeal Federal Estate Tax Introduced, But Still Faces Hurdles
According to a report from Financial Regulation News, a bill has been introduced in the United States Senate to repeal the federal estate tax. The legislation was introduced by South Dakota Senator John Thune and it has 45 co-sponsors. Here, our Norwood estate planning attorney provides an overview of the existing federal estate tax,… Read More »
What Does It Mean To Fund A Trust?
A trust is a legal arrangement where assets are managed for beneficiaries. They can be highly effective estate planning tools. Massachusetts has a wide body of law governing the use of trusts (MGL c. 203). Notably, all types of trusts generally need to be “funded” in order to become effective. This raises an important… Read More »