First, there’s a difference between the Federal Estate Tax and the Massachusetts Estate Tax. They’re related but very different.
The Federal Estate Tax for this year applies only to those individuals with assets worth over $5 Million and is taxed at a 35% rate. The Massachusetts Estate Tax applies to individuals with assets worth over $1 Million and the tax rate varies. If a person is subject to both the Federal and State tax, then their marginal estate tax rate could be 45% or more. However, for most individuals who have assets between $1M and $5M, then the tax rate hovers anywhere from 0% to 20%.
For a more comprehensive calculation, see the Department of Revenue site calculations.
Here’s the situation: you drew up a will and then sometime later, you get married. Does the act of marriage, invalidate or revoke the will made previously?
In the past, the answer would be ‘yes’. Many articles and posts online will probably say so. However, in 2009, Massachusetts adopted the Uniform Probate Code which brought the state in line with other states who adopted the same set of laws. The 2009 adoption provided that starting in July 1, 2011, a marriage will no longer invalidate a previously made will. However, due to budgetary restrictions, the court and the legislature decided to postpone the implementation of the new law until January 2, 2012
So in short, starting January 2, 2012, a Will made will always be valid.
A Power of Attorney has the authority to handle your property and finances. They are also able to sign for you while you are still living. However, when you pass away, this power also ends.
On the other hand, an executor for your Will has the authority to handle your property and finances after you have passed away.
So basically, power of attorney has authority to act on your behalf while you are alive while an executor has the authority to act on your behalf once you have passed away.
