Top 7 Mistakes in Estate Planning: Mistake No. 3

Mistake No. 3: Not planning for the Massachusetts and Federal Estate Taxes.

A trust is an effective way of doubling the amounts that a married couple can pass tax free to their children and grandchildren. While the federal estate tax free amounts continue to change and may drop to $1 million per person in 2011 - or even as soon as 2010 - it is important to consider how the growth of your assets over time will effect your tax situation. The state of Massachusetts also imposes a separate estate tax on all estates over $1 million. Your planning should address both of these taxes, which can be substantial.