Succession Tax in Massachusetts
There is no Massachusetts inheritance tax, as such the state levies tax mainly on the succession of properties. The Massachusetts inheritance tax could thus be said to be some sort of succession tax. The succession taxes in Massachusetts are imposed on all properties within the state limits.
Massachusetts Succession Tax Facts Succession taxes in Massachusetts are taken on all kinds of properties that are subject to taxation in the state of Massachusetts. Succession tax can be taken on properties even if their owners are non-residents of Massachusetts.
The earnings from life insurance policies are also liable to be taxed in Massachusetts. The taxes in such cases are based on the amount being earned by the executor or administrator of the estate of the deceased. Succession taxes could also be imposed on the earnings of the nominees of that insurance policy.
Massachusetts Succession Tax Exemptions
Exemptions can be made in Massachusetts for certain properties under the conditions mentioned by the law. Provided the particular property is received from a transferable certificate of participation or share of an association, it could be exempted from taxation.
Exemptions from succession tax could also be granted in Massachusetts to partnerships or trusts if they have been received through wills or laws that govern intestate succession. However, if a person buys a property authentically, expecting that the owner might be deceased in a short time, it would not be exempted from inheritance taxes.
A multi-family residential property is eligible to receive exemptions from succession tax as mentioned by the relevant laws; however, there are some important considerations as well, such as only the first $25,000 worth of the particular property is exempted from taxation in Massachusetts.
The first $25,000 of the earnings received from insurance policies are kept outside the scope of taxation in Massachusetts. Such rules are applicable only if the spouse of the deceased, or the trustees of deceased, receive the amount.
Last Updated on : 5th July 2013