Estate & Trust Blog

Informing and Updating

Mass Estate Tax on Non-Mass Real Estate

Historically, Massachusetts has subjected real estate located in a state with no estate tax (Florida, etc.) to estate tax in a Massachusetts. Based on a recent court decision, however, this appears about to change; and this can result in substantial estate tax savings. This is welcome news, as it clears up what was somewhat ambiguous. And, in so declaring, the court seems to have acknowledged that a Massachusetts resident who titles non-Mass real estate in a partnership or LLC (for example, for management and/or asset protection purposes) appears to convert real estate - for estate tax purposes - to taxable intangible personal property, which then would be subject to Massachusetts estate ta

Eliminating State Income Tax on Trusts

Income tax is - or should be - part of modern estate planning. This is one of a series of entries on this "hot" topic. State jurisdiction over trust income tax (that is, what state(s) a trust must pay taxes to) varies widely state to state. Some states base taxability on, trustee, and some on the grantor's state of residence. Many tax "state source income" (such as real estate rental income). And some (hooray!) have no income tax on trusts. It's not unusual for a trust to file in multiple states, and it's not unusual for a trust to have no state filing requirement. The good news is that, with some planning, new or existing trusts can reduce their state income tax expenses, and thus enhan

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