Massachusetts Estate Tax Portability & Marital Deduction

No portability — and leaving everything outright to a spouse is exactly what wastes the first $2,000,000 threshold.

M.G.L. c. 65C, §2A

Quick answer: no — Massachusetts does not let a surviving spouse add a deceased spouse's unused threshold to their own. Run your own numbers in the Massachusetts estate tax calculator.

One threshold per spouse, no exceptions

Confirmed current: Massachusetts does not offer portability. A surviving spouse cannot inherit the unused $2 million exemption of the first spouse to pass away. Each spouse's $2,000,000 threshold stands alone — unlike the federal system, where portability lets a surviving spouse carry forward what the first spouse didn't use.

The marital deduction is the trap, not the fix

Transfers between spouses generally aren't taxed at the first death. But that's exactly what causes the problem: if the first spouse leaves everything outright to the survivor, that spouse's own $2,000,000 threshold goes completely unused, with no way to recover it when the survivor later dies.

The standard workaround: a credit shelter trust

Massachusetts couples typically use a credit shelter (bypass) trust to hold assets up to the exemption amount when the first spouse dies. Those assets pass outside the surviving spouse's own taxable estate, so the couple ends up using both $2,000,000 thresholds instead of losing one.

A QTIP election can work alongside it

Some families also use a Qualified Terminable Interest Property election, which lets the surviving spouse benefit from trust assets during their lifetime while still keeping those assets out of their own taxable estate — a flexible tool your attorney can pair with a credit shelter trust depending on the estate's specifics.

Facing probate in Massachusetts?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a Massachusetts attorney

For married couples with a combined estate above $2,000,000, getting this piece of the plan right is often the single most consequential decision in the whole estate plan.

Portability & marital deduction — frequently asked questions

Does Massachusetts offer estate tax portability between spouses?

No. Massachusetts does not allow a surviving spouse to inherit the unused portion of a deceased spouse's $2,000,000 threshold — unlike the federal system, which permits portability.

What happens if the first spouse leaves everything to the survivor outright?

Because transfers between spouses aren't taxed at the first death, leaving everything outright means the first spouse's $2,000,000 threshold goes completely unused — and cannot be recovered later.

What do Massachusetts couples typically use instead of portability?

A credit shelter (bypass) trust, which holds assets up to the exemption amount at the first spouse's death so that both spouses' $2,000,000 thresholds get used, rather than just one.

Is a QTIP election available in Massachusetts?

Yes — a Qualified Terminable Interest Property election lets a surviving spouse benefit from trust assets during their lifetime while keeping those assets out of their own taxable estate, often used alongside a credit shelter trust.

This page provides general guidance only and is not legal or tax advice. Based on M.G.L. c. 65C, §2A and current estate planning guidance. Confirm current figures and planning options with the Massachusetts Department of Revenue or a licensed estate planning attorney before acting.