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Smart Strategies. Thoughtful Planning. Local Expertise.
Whether you’re navigating the new federal estate tax landscape or trying to reduce your exposure to Massachusetts estate taxes, planning ahead can make a significant difference. At Family Estate Planning Law Group, we work with individuals and families across Greater Boston, the North Shore, and Southern New Hampshire to create personalized estate tax strategies that evolve with your life and the law.
Why Estate Tax Planning Matters
Estate taxes can quickly erode the legacy you’ve built. Without proactive planning, families may be forced to sell assets, disrupt generational wealth, or pay more in taxes than necessary. That’s why we don’t just “do documents” — we develop real relationships and long-term strategies designed to protect your assets across generations.
Understanding Estate Taxes in 2025 and Beyond
Federal Estate Tax Basics
As of 2025, the federal estate and lifetime gift tax exemption is $13.99 million per person (or $27.98 million for married couples) with a top tax rate of 40% (IRS source). That number is about to change.
With the passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, the exemption will increase to $15 million per person (or $30 million per couple) beginning in 2026, with annual inflation adjustments. This replaces the uncertainty of the previous sunset rules, which would have cut the exemption in half.
This is a major win for high-net-worth individuals and families looking for predictability. But it also creates a planning window that should not be overlooked. If your estate is projected to grow, or you hold appreciating or illiquid assets, now may be the ideal time to explore strategies like gifting, trust funding, or business interest transfers.
We’ve written a series of blog posts on the OBBBA and how it may impact your estate plan, especially if you live in Massachusetts or hold assets across generations.
Massachusetts Estate Taxes
Massachusetts has its own separate estate tax system. As of 2023, the exemption is $2 million, with a progressive tax rate starting around 5% and climbing up to 16% (Mass.gov source). Estates over $2 million are subject to the full tax, even if only by a small margin — which makes planning crucial for many families in our region.
Learn how the Massachusetts Standby Gifting Trust can help you stay under the state exemption.
Common Estate Tax Planning Strategies
Every family is different. That’s why we tailor strategies that reflect your values, goals, and financial picture. Some of the tools we use include:
- Gifting Strategies: Use annual exclusions and lifetime exemptions to gradually shift wealth tax-free.
- Irrevocable Trusts: Remove assets from your taxable estate while retaining control through well-structured trust planning.
- Life Insurance Planning: Fund tax obligations outside of your estate or shelter death benefits using irrevocable life insurance trusts.
- Charitable Giving: Create charitable lead or remainder trusts to benefit causes you care about and reduce taxable estate value.
- Spousal Planning: Leverage the marital deduction or QTIP trusts to defer or reduce taxes for a surviving spouse.
- Generation-Skipping Strategies: Use GST-exempt trusts to pass wealth to grandchildren while avoiding double taxation.
A Hypothetical Family. A Real Estate Tax Problem. A Smarter Plan.
Our estate tax planning lawyers in Lynnfield coordinate closely with your financial advisor, CPA, and other professionals as part of our GENCollab process, so your estate tax plan is not only technically sound but aligned across your full financial team.
Imagine a couple living in Wakefield. They own multiple rental properties, have built a thriving family business, and each have children from previous marriages. Their combined assets place them well above both the Massachusetts and federal estate tax exemption thresholds. They also want to make sure their legacy is protected for everyone they care about.
Without a plan, their estate could face hundreds of thousands in taxes. Worse, the children from prior marriages might be unintentionally disinherited. So, they take action.
Working with an estate tax planning attorney, they:
- Carefully plan for what happens to the home if one spouse dies, ensuring the surviving spouse can continue living there while preserving some or all of the equity for the children.
- Use lifetime gifting strategies to begin transferring shares of the business to the next generation.
- Establish an irrevocable trust to hold appreciating real estate outside of the taxable estate.
- Create a charitable remainder trust to support causes they care about while reducing their tax burden.
- Purchase life insurance and place it in a trust to help cover anticipated estate tax liabilities and/or provide for the surviving spouse without reducing the children’s interests in other assets.
By planning early, they lower their taxable estate, maintain fairness across their blended family, and keep their real estate and business intact for future generations.
What Makes FEPLG Different
At FEPLG, estate tax planning is not a one-time event. It’s part of a broader commitment to long-term planning through our Generations Program, which includes:
- Ongoing plan reviews to account for legal, financial, or family changes
- Asset alignment to ensure everything is titled and structured correctly
- Team collaboration with your advisors through our GENCollab model
- Education and guidance for future generations to stay protected
We don’t just create documents. We build plans — and relationships — that grow with you.
Estate Tax Planning Attorney in Lynnfield: FAQs
What is the Federal Estate Tax Exemption?
In 2025, the federal exemption is $13.99 million per person. This new tax law provides that the federal exemption will increase to $15 million per person adjusted annually for inflations.
Does Massachusetts Have an Estate Tax?
Yes. The Massachusetts estate tax applies to estates over $2 million. If your estate exceeds that threshold, the entire value becomes subject to tax. Married couples must do proactive planning in order for both spouses to take advantage of the $2 million exemption in order to pass $4 million estate tax free.
How Can I Reduce Estate Taxes Legally?
Strategies include making lifetime gifts, setting up irrevocable trusts, leveraging charitable planning, and properly coordinating ownership of your assets.
When Should I Start Estate Tax Planning?
Ideally, long before your estate approaches the exemption thresholds — especially in Massachusetts, where the limit is relatively low. Planning early gives you more flexibility.
How Often Should I Review My Plan?
We recommend reviewing your estate plan annually and after any major life events, such as births, deaths, marriages, divorces, or significant financial changes.
