Massachusetts Estate Tax and the Step-Up Basis Trap
What Happened
Von Weiss Law Office, an estate planning and elder law firm based in North Easton, Massachusetts, released a profile of its founder, attorney Brigitte von Weiss, ahead of the firm's 30th anniversary in 2027. The release highlights how von Weiss combines a law degree with a Master of Science in Taxation from Bentley College to serve Massachusetts families navigating estate planning, trust administration, and MassHealth planning for nursing home and community care.
The announcement centers on a practical tax dilemma that von Weiss encounters regularly in her practice. A client owned a rental property in Canton valued at more than $1 million at a time when the Massachusetts estate tax threshold stood at $1 million. He asked whether to deed the property to his daughter before his death to reduce estate tax exposure. Von Weiss and his accountant advised against the transfer. Gifting the property during life would have passed the client's original cost basis to his daughter, triggering a large capital gains tax liability on any future sale. By holding the asset until death, the daughter inherited the property with a basis reset to fair market value on the date of death — eliminating the embedded capital gain entirely.
The release also describes von Weiss's background as a registered nurse, including intensive care unit work at the University of Chicago Medical Center. That clinical experience, she says, trained her to communicate complex information clearly and to gauge whether clients genuinely understand their options — a skill she applies directly when guiding families through crisis moments such as an Alzheimer's diagnosis. The firm serves communities including Easton, Brockton, Canton, Mansfield, Sharon, and Stoughton.
What It Means
The case von Weiss describes illustrates a tension that affects a significant number of Massachusetts families. Massachusetts imposes a state estate tax with an exemption of $2,000,000M.G.L. c. 65C § 2A; St. 2023, c. 50; St. 2024, c. 206, § 13; St. 2025, c. 9, § 35Verified Sep 15, 2026View source, well below the federal exemption of $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source. That gap means estates that owe nothing to the federal government can still face a Massachusetts estate tax bill of up to 16%M.G.L. c. 65C § 2A; St. 2023, c. 50; St. 2024, c. 206, § 13; St. 2025, c. 9, § 35Verified Sep 15, 2026View source. Families with appreciated real estate, retirement accounts, or closely held business interests frequently find themselves above the state threshold even when they consider themselves middle-class. The instinct to give assets away before death to reduce that exposure is understandable, but it carries a cost that the estate tax savings may not offset.
Federal law resets the cost basis of inherited assets to reset to fair market value on the date of death26 USC § 1014Verified Sep 15, 2026View source. A property purchased decades ago for $150,000 and now worth $900,000 carries $750,000 of embedded gain. If a parent gifts that property during life, the recipient takes the original $150,000 basis and faces capital gains tax on the full appreciation when they sell. If the parent holds the property until death, that gain disappears entirely at the stepped-up basis. Massachusetts ordinary income tax at the state's regular ratesM.G.L. c. 62 § 2(b)(3) (Part C gross income = gain from capital assets held > 1 year); § 4(c) (Part C taxed at the Part B rate; 3% on qualifying MA small-business stock held ≥ 3 years); § 4(a)(1) (Part A: 12% on capital gains, 8.5% on assets held ≤ 1 year); § 4(b) (Part B rate, floor 5%); § 4(d) (4% surtax above the indexed $1M threshold)Verified Sep 15, 2026View source, which means the difference between gifting and inheriting can translate into a substantial state income tax bill on top of any federal liability. The interplay between these two tax systems demands analysis that goes well beyond a simple comparison of estate tax rates. Families weighing a gifting program to reduce the Massachusetts estate tax exposure benefit from running the full numbers, including projected capital gains on each asset, before transferring title. For a deeper look at how estate and inheritance taxes interact, the estate tax versus inheritance tax comparison on SimplyTrust explains the mechanics in plain language.
The release also highlights three documents von Weiss calls underestimated: a will, a power of attorney, and a health care proxy. Massachusetts requires 2M.G.L. c. 190B § 2-502Verified Sep 16, 2026View source witnesses for a valid will. Massachusetts does not recognize handwritten wills, meaning an unwitnessed handwritten document carries no legal weight here. Notarization is not required for a Massachusetts will, though a self-proving affidavit is available and can simplify the probate process later. Without a will, the state's intestacy rules govern distribution. Under those rules, a surviving spouse with children from a prior relationship receives the first First $100,000 plus half of the remaining estateM.G.L. c. 190B § 2-102Verified Sep 10, 2026View source — a split that may not reflect what the decedent intended. Without a power of attorney, a family that needs someone to manage finances for an incapacitated loved one must petition the Probate and Family Court for a formal conservatorship, a process that adds cost and delay during an already difficult time. A health care proxy in Massachusetts requires 2M.G.L. c. 201D § 2Verified Jul 15, 2026View source witnesses but no notarization, making it a straightforward document to execute while a person has capacity. Understanding what each document does — and what happens without one — is a foundational step in any estate plan. The glossary of estate planning terms provides clear definitions for anyone starting that process.
Context from SimplyTrust
The estate tax and step-up basis interaction von Weiss describes applies to any Massachusetts estate that includes appreciated assets — real estate, investment accounts, or business interests held for many years. Probate in Massachusetts carries a court filing fee of $390M.G.L. c. 262, § 40; M.G.L. c. 262, § 4CVerified Sep 8, 2026 and typically runs 9 months to 14 months, with attorney fees that generally fall between 2.2%No specific statute for general probate attorney fees; reasonable compensation subject to court review. M.G.L. c. 190B § 3-720 covers litigation expense reimbursement only.Verified Sep 8, 2026View source and 3.5%No specific statute for general probate attorney fees; reasonable compensation subject to court review. M.G.L. c. 190B § 3-720 covers litigation expense reimbursement only.Verified Sep 8, 2026View source of the estate. Massachusetts requires a surety bond for executors, though the will can waive this requirement. Creditors have 12 monthsM.G.L. c. 190B § 3-803Verified Sep 8, 2026View source to file claims against an estate, which extends the timeline further. Families who want to understand how these costs stack up can read more about bypassing probate and the strategies that reduce court involvement. For those managing appreciated property and weighing the gifting versus inheritance question, the guide to putting a house in a trust walks through how a revocable living trust handles real estate without triggering a taxable transfer during life — preserving the step-up basis while also keeping the property out of probate at death.
Massachusetts does not currently authorize transfer-on-death deeds for real estate, which means a trust or joint ownership arrangement remains the primary way to pass real property outside of probate. Massachusetts has adopted the Uniform Trust Code, providing a structured framework for trust administration and beneficiary rights. Beneficiaries of a Massachusetts trust receive notice within 30 daysMGL c. 203E §§ 813, 1005Verified Sep 15, 2026View source of the trustee learning of the grantor's death. For anyone serving in that trustee role, the trustee checklist outlines each responsibility from the moment the trust becomes irrevocable through final distribution.
