Estate and gift taxation is an area of law that has been in constant fluctuation. The Massachusetts estate tax kicks in at $1,000,000 of taxable assets. At present, there is no federal estate tax, but in 2011 there will be a federal estate tax on a taxable estate over $1,000,000, unless the federal law changes; many commentators expect the federal figure to change to $3,500,000 once Congress gets around to fixing the law.

There is still a federal gift tax on taxable gifts in excess of $1,000,000. The first $13,000 given per person per calendar year is usually not considered a taxable gift.

Estate tax returns are due 9 months after a person’s death, and there are post-mortem options available during this time. The taxable estate includes a person’s net worth at death. Real estate and business interests have to be appraised, and the proceeds of life insurance policies are Included if not handled appropriately while the insured person is still alive.

With appropriate planning, which usually involves the use of trusts, married couples can effectively double the amount they can leave behind free of estate tax to the next generation.