Estate Tax Preparation

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Estate Tax Preparation in the Greater Boston Area

Massachusetts Estate Tax Rate

Massachusetts has a range of estate tax (marginal) rate, beginning with 0 percent on taxable estates of $1 to $40,000 all the way up to 16 percent on taxable estates $10.04 million and up. The same applies to nonresidents.

Tax Forms To Be Filed

The estate representative of an estate that is subject to the Massachusetts estate tax must first complete a federal estate tax return, IRS Form 706.  Once the federal return is completed, the estate representative can prepare the Massachusetts Estate Tax Return, Form M-706.

You may be required to submit a Federal Closing Letter to the Massachusetts Department of Revenue (DOR) .  This would include the federal letter of acceptance and potential line adjustments. Without exception, no Massachusetts Estate Closing Letter will be issued without a copy of that Federal Closing Letter.

The need for a Certificate Releasing Massachusetts Estate Tax Lien (Form M-792) may arise where a release of lien is required. A copy of the deed or certificate of title, and the purchase and sale agreement (or mortgage commitment), if any, should be provided.

For the estates of deceased nonresidents, you will need a Massachusetts Nonresident Decedent Affidavit (Form M-NRA).

Estate Tax Return and Tax Payment Due Dates

The Massachusetts estate tax return has to be filed within nine months after the date of death. Any estate tax due must be paid within that time frame as well.  You can apply for an extension through the M-4768 form. However, if less than 80 percent of the total amount due is paid, the extension is considered void and you’ll incur penalties for filing late.

Release of Massachusetts Estate tax Lien

A release of Massachusetts estate tax lien is required against all Massachusetts real estate in which the decedent had a stake at the time of death. These types of liens are also required on real estate in Massachusetts that an individual transferred under certain circumstances before passing. To release the lien, you would need a Certificate Releasing Estate Lien and an affidavit. 

Fisher Law LLC can assist you with the preparation of the Massachusetts and Federal estate tax returns and secure closing letters and releases of tax liens.  

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