Massachusetts Estate Planning Laws

Estate & Inheritance Tax

Massachusetts imposes a state estate tax. The exemption threshold is $2.0M with a top rate of 16%. Estates below the exemption amount are not subject to state estate tax. This is in addition to the federal estate tax.

Massachusetts does not impose an inheritance tax.

Probate Process

Massachusetts uses a both probate system. Estates valued below $25,000 may qualify for simplified small estate procedures, such as a small estate affidavit, which avoids full probate.

Elective Share: The surviving spouse may waive the will and instead take one-third of the personal and real property if there are surviving issue, or up to $25,000 plus certain allowances.

Will Requirements

In Massachusetts, a valid will requires:

• The testator must be at least 18 years old and of sound mind
• The will must be in writing
• The will must be signed by the testator (or by another person at the testator's direction)
• 2 witnesses must sign the will

Holographic (Handwritten) Wills: Massachusetts does not recognize holographic (handwritten) wills. A will must be properly witnessed to be valid.

Self-Proving Affidavit: Notarization is required for a self-proving affidavit, which allows the will to be admitted to probate without witness testimony.

Digital/Electronic Wills: Not currently authorized under state law.

Power of Attorney

Massachusetts follows common law principles for powers of attorney. While there is no mandatory statutory form, the document should clearly specify the powers granted.

A durable power of attorney remains effective if the principal becomes incapacitated. This is a critical estate planning document for Massachusetts residents.

Medicaid Planning

Massachusetts follows the federal Medicaid look-back period of 60 months (5 years). Any transfers of assets for less than fair market value made within this period before applying for Medicaid may result in a penalty period of ineligibility.

Planning for potential long-term care needs should begin well in advance of the look-back period. Consult with an elder law attorney in Massachusetts for strategies specific to your situation.