A question-by-question guide to what a household may want to prepare before meeting with its attorney and CPA, and where a financial advisor may coordinate the information. It is educational and does not recommend any strategy.
Estate Tax Guide · Updated October 2026
Massachusetts pre-retirees may want to review a complete balance sheet, how assets are owned and who is named as beneficiary, the lack of spousal portability, liquidity for a possible tax bill, lifetime gifts, and how often to revisit the plan. Each is a question to bring to your attorney and CPA.
Key takeaways
According to the Massachusetts Department of Revenue, a Massachusetts estate tax return is required for a decedent who was a Massachusetts domiciliary dying on or after January 1, 2023 when the gross estate plus adjusted taxable gifts exceeds $2,000,000. Estates of decedents dying on or after that date are allowed a credit of $99,600 that may reduce the tax. The department also notes that the calculation steps changed for decedents dying on or after August 1, 2025, and that a return and any tax are generally due nine months after the date of death.
Source: Massachusetts Department of Revenue, Estate Tax Guide (page updated April 23, 2026) and FAQs: New Estate Tax Changes. Verified against mass.gov as of October 14, 2026. Thresholds, credits and calculation steps may change, and the tax for any estate is a question for your attorney and CPA.
This page does not repeat the broader overview. For documents, the role of each professional, and the wider planning picture, read the Massachusetts estate planning guide. For the difference between the two taxes, read how estate tax differs from inheritance tax in Massachusetts.
Calculator call-out. To organize a general estimate before you meet with your professionals, try the Massachusetts estate tax calculator. It is an educational tool and does not give legal or tax advice, and its result is not a tax calculation for your estate.
Estimate your Massachusetts estate tax with the calculator →The first question for your CPA and attorney is often what the estate actually includes. The state looks at property however it is held, which may include real estate, bank and investment accounts, retirement accounts, life insurance you own, business interests, and tangible personal property. Debts and expected expenses matter as well. Property located outside Massachusetts may be treated differently in the state calculation, so ask your CPA how any out-of-state real estate or tangible property is handled.
A shared, current inventory may help each professional work from the same numbers. Keep it at a summary level and leave account numbers and passwords out of it. Values and ownership change, so the inventory is a snapshot, not a conclusion.
How an asset is titled and who is named on a beneficiary form may control where it goes, regardless of what a will says. Gaps are common after a move, a remarriage, a new account, or a change in family circumstances. Ask your attorney which assets are meant to be governed by which document, and ask whether any title or designation should be updated. If a trust is part of the plan, the guide to funding a trust in Massachusetts walks through the account-by-account follow-through. Retirement accounts may raise their own income tax and beneficiary questions for your CPA.
At the federal level, a surviving spouse may be able to use the first spouse's unused exclusion through a portability election. Massachusetts has no equivalent election for its own estate tax exemption, so a first spouse's unused Massachusetts exemption generally does not carry over to the survivor. If everything passes outright to the survivor, the combined estate may later be measured against a single state threshold. Whether any document structure fits a particular couple, and what limits it would bring, is a question for your attorney and CPA. For general background, read the A/B trust guide on how both spouses' Massachusetts exemptions may be considered.
An estate may hold value in assets that are not easy to turn into cash, such as a home, a business interest, or retirement accounts that may create income tax when withdrawn. If tax is due, the Department of Revenue says it is generally payable nine months after death, and interest may accrue on any unpaid tax from the original due date even when an extension applies. Ask your CPA and attorney how an estate might raise cash, who would be responsible for filing, and what timing questions could arise.
Income tax is a separate matter. For tax year 2026, Massachusetts applies a 4% surtax to taxable income above $1,107,750, and a large sale or withdrawal in one year may be part of that conversation with your CPA.
Source: Massachusetts Department of Revenue, Massachusetts 4% Surtax on Taxable Income (page updated June 1, 2026). Verified against mass.gov as of October 14, 2026. The threshold is adjusted annually for inflation.
The Massachusetts filing test adds adjusted taxable gifts to the gross estate, so a lifetime gift may still matter for the state estate tax even when it is outside the estate. Gifts may also involve reporting, a loss of control over the asset, and tax basis questions for the person who receives it. The federal gift tax rules and the Massachusetts estate tax are different systems, which is why the questions belong with your attorney and CPA. For the concepts, read how the federal lifetime gift tax exemption differs from the Massachusetts estate tax.
Many households revisit the plan on a regular schedule, and also after a major event such as retirement, a move, a marriage or death in the family, a sale of a business, an inheritance, or a change in tax law. Asset values may move above or below the threshold between reviews, and older documents may not reflect current rules. Ask your attorney and CPA what review schedule fits your circumstances.
Michael Cammarata, CFP®, is not an attorney or CPA and does not draft legal documents, give legal or tax advice, or prepare tax returns. His role is to coordinate the financial side of the work with the professionals you choose. Read more about how a financial advisor coordinates estate planning with your attorney and CPA.
Your attorney explains the options the law may allow and drafts and finalizes any will, trust, or other legal document.
Your CPA reviews estate, gift, and income tax effects and prepares any tax returns.
The advisor organizes the balance sheet, titling and beneficiary information, and liquidity details, and tracks open items between your attorney and CPA.
Family, asset values, and tax rules change, which may call for another review with your professionals.
These questions are educational starting points. Your professionals can answer them for your situation.
Questions to bring to your professionals
This guide cannot say for any household. Some families discuss categories such as changes to ownership and beneficiary designations, trust structures, lifetime gifts, or charitable giving with their attorney and CPA. Each may involve cost, less flexibility, reporting, and rules that change, and the right answer depends on individual circumstances.
Common documents include a will, powers of attorney, health care directives, and sometimes trusts, along with beneficiary designations on accounts. The Massachusetts estate planning guide on this site describes these at a general level. Your attorney decides what your documents should say.
It may be worth a look. The state measures the gross estate, which may include more than investment accounts, such as real estate, retirement accounts, life insurance you own, and business interests, and adjusted taxable gifts are added for the filing test. Values also change over time, so a household near the line may want to review its numbers with a CPA and attorney.
No. An attorney drafts legal documents, and a CPA advises on tax matters and prepares tax returns. Michael Cammarata, CFP®, is not an attorney or CPA. He may coordinate the financial information, account ownership and follow-up among the professionals you choose.
This guide is for educational purposes only and does not constitute individualized legal, tax, or investment advice. It does not recommend any strategy for any reader. Investment advisory services are offered through MSA Financial, LLC, a Registered Investment Adviser (CRD #107768). MSA Financial is an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. Investing involves risk, including the potential loss of principal. Michael Cammarata is not an attorney or CPA and does not provide legal or tax advice. He does not draft legal documents or prepare tax returns. He coordinates with clients' existing estate attorneys and CPAs. Tax treatment depends on individual circumstances, and legal and tax advice should be obtained from your own attorney and CPA. The Massachusetts tax figures were verified against mass.gov as of October 14, 2026 and may change.