Did you know an estate tax lien attaches to your Massachusetts real estate on your death without any requirement of notice to your family?
Well, it’s true. In Massachusetts, when a property owner passes away, a ten-year estate tax lien automatically attaches to all real estate that decedent owned in Massachusetts, including jointly held property. This is the case even if you are a surviving spouse and might not owe any estate tax to Massachusetts.
If you are married person who just lost your spouse, you might ask, “How do I remove this estate tax lien on our home?”
To clear this lien from your home, the process depends on the total value of your late spouse’s assets and whether it exceeds the Massachusetts estate tax filing threshold.
Step 1: Determine If a Massachusetts Estate Tax Return Is Required
As of 2023, Massachusetts requires an estate tax return (Form M-706) if a decedent’s gross estate exceeds $2 million. If your spouse’s gross estate is below this threshold, no estate tax return is necessary, and the lien can be released by simply filing an affidavit.
Step 2: Release the Estate Tax Lien
A. If the Estate Is Below the Filing Threshold:
You can release the lien by recording a notarized affidavit at the Registry of Deeds in the county where the property is located. The affidavit must include:
- Your late spouse’s full name and date of death
- Your residence at the time of his or her death
- A statement that your late spouse’s gross estate does not necessitate a Massachusetts estate tax filing
- A declaration that the affidavit is signed under the penalties of perjury
This affidavit effectively releases the estate tax lien without the need for a formal certificate from the Department of Revenue (DOR).
Our office can prepare this Affidavit for you.
B. If the Estate Exceeds the Filing Threshold (even if no estate tax is due as is often the case where there is a surviving spouse):
You must file Form M-706 with the Massachusetts DOR with all necessary verifications attached. Once the return is processed, the DOR will issue a Certificate Releasing Massachusetts Estate Tax Lien (formerly called a Form M-792). You would then record this certificate at the Registry of Deeds to officially release the lien.
C. If a Sale or Mortgage Is Pending Before Filing:
If you need to sell or refinance your home before the estate tax return can be filed, you can expedite the release of the Massachusetts Estate Tax Lien through the Commonwealth of Massachusetts tax website entitled “MassTaxConnect”. This application requires:
- A copy of the Deed to your home
- A copy of the purchase and sale agreement or mortgage commitment
- Payment of the estimated estate tax due (which can be handled efficiently via electronic withdrawal from your account)
- A copy of your late spouse’s death certificate
Filing through MassTaxConnect expedites processing and allows you to access and print the Certificate Releasing Massachusetts Estate Lien directly from your account.
Additional Considerations
- The estate tax lien automatically expires ten years after the date of death, but recording the appropriate affidavit or certificate ensures clear title, especially important if you plan to sell or refinance the property within the next ten years.
- It’s advisable to consult with an estate attorney or a real estate professional to ensure all procedures are correctly followed, particularly if the estate’s value is near the filing threshold or if there are complexities in the estate’s assets.
Generations Law Group can prepare and file a M-706 MA Estate Tax Return and, where necessary, an expedited release of the estate tax lien. Contact us today to schedule a consultation and ensure your loved one’s estate is administered in accordance with the latest Massachusetts tax laws.
Founded by a nurse attorney and with offices in Acton, Andover, and Sudbury, Massachusetts, Generations Law Group helps families navigate the complex areas of estate planning and elder law to inform and protect loved ones of every generation.
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