Gift Tax Attorneys in Boston
Many Boston residents are surprised to learn that Massachusetts has a relatively low threshold for state-level estate taxes. If your assets are significant enough to potentially incur state or federal estate tax, strategic gifting can be a great way to reduce your tax liability.
Some financial gifts require you to file a gift tax return, which means that they will count toward your lifetime gift and estate tax exemption. Gift tax attorneys can help you understand the laws surrounding these complex tax laws and build a giving strategy that works for you and your loved ones.
Overview of Gift Tax in Boston
An MA gift and estate tax lawyer can help you give away assets in a manner that benefits you and the recipient. Here is an overview of how the laws work:
State vs. Federal Gift Tax
Massachusetts doesn’t have a state-level gift tax, although it does levy an estate tax. The threshold for the state-level estate tax is much lower than it is for the federal estate tax. This means that many people who don’t have to pay federal estate tax could still owe Massachusetts estate taxes.
Massachusetts State Gift Tax
In Massachusetts, the lifetime gift and estate tax exemption is $2 million. Any “taxable” gifts (gifts in excess of the annual exclusion amount for the year) will be added back to the value of your estate.
However, thanks to a change in the law in 2023, Massachusetts only taxes the portion of your estate that exceeds the $2 million exemption. Prior to 2023, if your estate was worth more than the exemption amount, your entire estate would be taxed.
The gift and estate tax rate can vary considerably based on the overall value of your estate. Massachusetts uses a marginal rate system in which the lowest marginal gift/estate tax rate is 0.8%, while the highest is 16%.
Federal Gift Tax
The federal government lumps gifts and inheritances together for tax purposes, levying taxes on the amount given that exceeds the lifetime exemption. As of 2026, the federal lifetime exemption is $15 million for individuals and $30 million for married couples.
The amount of federal estate tax you’re liable for depends on the value of your estate (including lifetime taxable gifts) when it exceeds the $15 million exemption. The lowest federal estate tax rate is 18%, while the highest is 40%.
Just like the state-level estate tax, the federal estate tax is only assessed on the amount of your estate that exceeds the exemption, rather than the total value of the estate.
The Annual Gift Tax Exclusion
Each year, the federal government sets the annual gift tax exclusion. Gifts up to this amount will not count toward your lifetime gift tax exemption.
In both 2025 and 2026, the annual gift tax exclusion was set at $19,000 per recipient. This means that you could make an unlimited number of gifts (to different people) of up to $19,000 each, but the total amount you gave would not count toward the state or federal gift and estate tax exemption.
Married couples may use something called “gift-splitting” to maximize their charitable impact. Under this option, couples may give unlimited gifts of up to $38,000 per recipient without impacting their lifetime gift and estate tax exemption.
If you make a gift in excess of the annual exclusion amount, you won’t owe taxes right away. However, you must file IRS Form 709, the federal gift tax return. Upon your death, the amount of the gift would be added back to the value of your taxable estate.
Massachusetts doesn’t have a separate state-level gift tax return you need to file. However, the state does add reported gifts back to the value of your taxable estate upon your death.
How Giving Strategies Can Influence Massachusetts Estate Tax
While the state-level estate tax is triggered if your estate is valued at over $2 million, making gifts that do not exceed the annual exclusion amount can reduce the value of your taxable estate in Massachusetts.
When the government calculates whether your estate exceeds the taxable limit, it will count taxable gifts toward the value. Making multiple gifts up to the exclusion amount can reduce the value of your estate, potentially helping you to avoid the estate tax altogether.
Why Hire Gift Tax Attorneys in Boston?
If you’re used to navigating your financial situation alone, it might be tempting to try to do your own strategic planning. However, there are several benefits to working with a federal gift tax lawyer in MA. For example:
- They can help you reduce or eliminate your state-level estate tax burden
- They can help you take advantage of the high lifetime estate and gift tax exemption
- They can handle gift tax returns and related paperwork
- They can offer guidance on gift taxation
Gift tax planning attorneys work with you to integrate your gifting strategy into the rest of your estate plan.
Gift Tax Planning Services Offered by Gift Tax Attorneys
Charitable gift tax attorneys can help you use the annual exclusion to your advantage, but that’s not all they can do. Here’s a look at how an attorney can help you reduce taxes through strategic giving:
- Creating trusts to move high-value assets out of your estate
- Using family limited partnerships to consolidate asset ownership
- Preparing accurate gift tax returns
- Defending you in the event of an IRS audit
Gift tax attorneys stay abreast of policy changes and inform you about changes so you can fully understand their impact on your broader plan. For example, lawmakers may decide to lower the high federal estate tax and gift tax exemption. If this happens, a Boston gift tax planning attorney can help you adjust your giving strategy accordingly.
Annual Gift Tax Exclusion and Yearly Gifting Strategies
For 2026, the yearly exclusion amount is $19,000 per recipient. This means you can make an unlimited number of gifts up to this amount (each to a different recipient), and none of them will count toward the lifetime estate and gift tax exemption.
Married couples may use a gift-splitting strategy, jointly contributing up to $38,000 per recipient. A gift-splitting lawyer in MA can offer guidance on this strategy if you decide to start gifting money as a couple.
Making repeated gifts up to the annual exclusion amount can reduce the total value of your taxable estate, which may reduce or even eliminate state or federal estate taxes. It’s a good idea to consult a Boston annual exclusion gift lawyer before getting started with this strategy.
Filing Gift Tax Returns and Managing Complex Gift Scenarios
At first, the laws concerning gift tax returns may seem simple: if you give any one person more than $19,000 (as of 2026), you need to file IRS Form 709. However, before you start implementing gifting strategies, it’s important to understand some other nuances of the law:
Gift-Splitting and Gift Tax Returns
If you’re married and you and your spouse want to reduce the value of your taxable estate, you might want to take advantage of the “gift-splitting” option. That means you may give up to $38,000 per recipient without counting toward the lifetime gift and estate tax exemption.
However, there’s a catch: You both must file IRS Form 709 to consent to the gift-splitting election. This is true even if your gifts don’t exceed the annual exclusion amount.
Gifting Valuable Art or Other Non-Cash Assets
Instead of giving cash, some people choose to reduce the value of their estate by gifting high-value artwork and other assets to friends and family. If you decide to gift these kinds of assets, it’s often wise to have them appraised in case the IRS challenges the gift’s value.
Our gift tax attorneys can help you decide whether to seek an appraisal before gifting an asset. We can help you execute intricate giving plans while ensuring that gift tax returns and other paperwork are completed accurately and filed on time.
Contact Jillise McDonough Law Firm
A smart gifting strategy can help you reach your long-term goals, avoid estate tax, and support the people and organizations you love. However, the laws that surround gift tax planning can be highly complex, and making a mistake could leave you faced with negative tax implications.
That’s why you need the assistance of experienced gift tax attorneys. The team at Jillise McDonough Estate Planning Law Firm is deeply familiar with estate and gift tax planning.
Whether you want to review your existing gift tax planning strategy or create one for the first time, our gift tax attorneys in Boston are here for you. Get in touch today to see how we can help you build your financial legacy!
Frequently Asked Questions
Does Massachusetts Have a State Gift Tax?
No. There is no state-level gift tax in Massachusetts. However, any taxable gifts (gifts exceeding the annual gift tax exclusion) made after December 31, 1976, will be added to the value of your estate. If your total estate exceeds $2 million, your personal representative will be required to pay state-level estate tax.
What Is the Federal Annual Gift Tax Exclusion for 2026?
The federal gift tax exclusion for 2026 is $19,000 per recipient. This is the same as it was in 2025. Married couples may make gifts of up to $38,000 per recipient.
Do I Have to Pay Gift Tax if I Exceed the Annual Exclusion?
Not necessarily. However, if you exceed the gift tax exclusion, you must file a gift tax form (IRS Form 709). Gifted funds exceeding the yearly exclusion will be counted toward your federal lifetime gift and estate tax exclusion. For 2026, that amount is $15 million for individuals and $30 million for married couples.
How Do Gift Tax Attorneys in Boston Help With Estate Tax Planning?
Strategic giving can help you reduce the value of your taxable estate. Our legal team is deeply familiar with gift tax laws, and we can help you create a strategy to reduce or even eliminate your estate tax liability.
Are Gifts Made Shortly Before Death Included in Massachusetts Estate Tax?
Generally, no. However, if these gifts are taxable (meaning that they exceed the annual exclusion), they may be added to the value of your estate when determining whether your personal representative will need to pay Massachusetts estate tax.
Do I Need to Report Gifts Made in Massachusetts to the State?
No. Because Massachusetts doesn’t have a state gift tax, there is no need to report in-state gifts for tax purposes. However, you must report gifts exceeding the annual exclusion to the IRS using a federal gift tax form (IRS Form 709).
Are Gifts to Trusts Subject to Gift Tax?
In most cases, yes. For a gift to qualify for the $19,000 gift tax exclusion, it must be a gift to a “present interest.” This means the gift’s beneficiary can use and enjoy it immediately. Usually, a gift to a trust is classified as a “future interest,” which means the entire gift is taxable.
However, there is an exception. If an irrevocable trust includes Crummey powers — meaning that beneficiaries have some immediate withdrawal rights — a gift to that trust may be considered a gift to a present interest (so it would therefore qualify for the $19,000 annual exclusion amount).
When Should I Hire a Gift Tax Attorney in Boston?
If you’re considering using personal or charitable giving as part of your estate planning strategy, it’s wise to consult gift tax planning attorneys first. The tax laws around financial gifts are more complex than many people realize. This is especially true if you plan to give more than the yearly exclusion of $19,000 per recipient.
Are Charitable Gifts Subject to Gift Tax?
In many cases, charitable donations are not subject to the gift tax. However, the Internal Revenue Service does consider something a charitable gift if it’s made to a 501(c)(3) organization. If you itemize your tax deductions, charitable gifts may lower your total federal tax liability.
Can Married Couples Double the Annual Gift Exclusion?
Typically, yes. However, in most cases, they must file a gift tax return (IRS Form 709) to do so. They also must file a joint tax return.
