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What happened with the federal estate tax? I heard that there was none anymore and then that it was back. If I inherit money this year what will the estate tax be? Thanks

Good News

If you inherit monies this year, YOU will not have to pay any tax. The estate from which you inherit it would be liable. That having been said, the new estate tax law only taxes sums over $5 Million dollars. The applicable rate is 35%, FEDERALLY. STATE taxes are also imposed in Massachusetts. A rule of thumb for the same is 9.5% over $1 Million dollars. The calculation of the same is complicated, hence the estimated number.
It is important to note that good planning in advance can reduce these taxes to their minimum, and indeed eliminate them entirely in many cases. Contact your attorney to discuss how to plan your or a relatives estate while there is time.
KGaughen@GaughenLane.com
www.GaughenLane.com

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