By: Eric P. Rothenberg, Esq. – Estate planning in general means that you are engaging in financial planning, tax planning, and succession planning and we do this through the laws governing property, wills, and trusts. Here are three facts about Massachusetts law that you should know, which are very different from federal laws. Estate Tax. Federal taxes levied against the deceased’s taxable estate in Massachusetts are extremely high. The rate can be as steep as 55% of the assets in your federal estate which pass on to those to whom you them. Moreover, these taxes must be paid in cash. They must also generally be paid within nine months from the date of death. This get comes very quickly after one passes away due to the needs for grieving, immediate family needs and business needs. While under federal law a single person can die and pass on over $5.4 Million

By Eric P. Rothenberg, Esq. – While there are many laws and court cases about “probate” property, most property today is “non-probate” and passes at death “by operation of law” and without probate court supervision. Non-probate property includes the following types of property: Property with a Beneficiary Designation: The usually consist of life insurance and retirement assets (like a 401(k), SEP, Keogh and IRA). This property, which is in effect a contract between you and your insurance company or retirement custodian, passes to the individual or individuals that you list on the company’s beneficiary designation forms. It is important to review these every so often to ensure your beneficiary designation is not out of date. It is equally important to note that these designations are NOT affected by a will. So even if your will states you leave that asset to someone, it does not supersede a designation form.