There is a common misconception that life insurance benefits are not subject to estate tax. While the proceeds of a life insurance policy are not taxable income to the beneficiaries, they are part of a person’s taxable estate if the insured dies owning the policy. The threshold for Massachusetts estate tax is $2 million, which means that many families will need to consider estate tax planning. This post has been updated as of March 28, 2024, to reflect changes to the Massachusetts estate tax…By: Bowditch & Dewey
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