Level 4

Filing for an Estate in Massachusrtts

Forum|Forum|8 months ago
October 14, 2025
2 replies
18 views

I am in the process of filing forms for an estate in Massachusetts

The assets at death of the second parent to die were transferred from a revocable Living Trust to an Irrevocable Remainder share trust to be equally divide amongst three beneficiaries.

The assets are a combination of securities and Rental Real Estate.

The value of the Remainder trust exceeds the $2 M limit , thereby requiring the filing of the estate tax form m-706.

Do I file a Federal Form 1041and a Massachusetts form M-706?

Massachusetts also references the need to complete a Federal form (706,1999 version) Do I need to do this since there will be no need to file a current form706?

How do i handle the value of the rental property?

Sorry for all the question.

I have done estates in Mass in the past but this id the first time I'm dealing with a remainder Trust

sjrcpa

Level 15

Federal 1041 is income tax for an estate or trust and it may be needed. Mass has a comparable form.

The Mass 706 is probably not available in the software. Intuit doesn't provide many states Estate Tax. Haven't done a Mass one in a while, but most of the time you have to also fill out the federal 706 first, even if there is no requirement to actually file the 706. But you might want to for portability if there is a surviving spouse.

EDIT: I reread and see you are dealing with a 2nd to die so portability is not an issue.

Mass wants the 1999 version of the 706? That will be fun.

For Maryland estates, we have to attach the federal 706 even if it is not being filed. But at least we can use the current version.

The more I know the more I don’t know.

BobKamman

Level 15

The 1999 Form 706 is readily available online at the IRS website. They must know that it's still popular in Massachusetts.

What do you mean by "Irrevocable Remainder share trust"? Google suggests "An 'irrevocable remainder share trust' is most likely referring to a charitable remainder trust (CRT)." That's a different animal with its own filing requirements.

P

Poltax75Author

Level 4

The Family Living Trust assets were moved into a Irrevocable trust which holds the assets until they are distributed to the beneficiaries.

I have the 706 (1999 VERSION) that is not a problem.

So of the federal return,is there a need to file a current form 706 ?

Or do I just file a 1041?

For Massachusetts I believe I file a Form M-706, based on the 1999 version of Form 706 ?

And just to make it interesting. The Trust also holds property in OREGON.

It is under the estate tax threshold. But I may need to file to get a release of any lien put in place by the State.

How do I handle the valuation of the properties in the Trust since they were mostly rental properties ?

Thank you

sjrcpa

Level 15

Trustee should get the real estate appraised as of the date of death.

You're going to have 2 state income tax returns - Mass and OR.

The more I know the more I don’t know.

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