Estate Tax Planning
Serving Families Tax Planning Needs in Rhode Island and Massachusetts
Estate tax planning isn’t just for the ultra-wealthy. It’s for anyone who wants to reduce the tax burden on their heirs and preserve more of what they’ve worked hard to build.
At Lambros Law Office, we help individuals and families across Rhode Island and Massachusetts understand how federal and state estate taxes may affect them—and how proper planning can help. Whether you’re concerned about gift taxes, generation-skipping transfers, or rising property values pushing you closer to a taxable estate, we’ll help you make informed decisions and craft a plan that protects your legacy.
At Lambros Law Office, we help individuals and families put the right legal documents in place so their plans are clear, their loved ones are protected, and their assets are handled according to their values and intentions.
Why Estate Tax Planning Matters
The estate tax is essentially a tax on the right to transfer property after death. Depending on the size of your estate and where you live, your estate—or in some cases, your heirs—could face taxes that reduce what’s ultimately passed on.
Good planning helps you:
Take advantage of federal and state exemptions
Use lifetime giving strategies effectively
Minimize taxes on transfers to grandchildren
Plan for growth in your estate over time
Coordinate tax planning with your overall estate goals
Understanding Federal Estate and Gift Tax Laws
The federal estate tax is part of a broader system called the Unified Transfer Tax, which includes:
Estate Taxes – levied on assets transferred at death
Gift Taxes – applied to certain lifetime gifts
Generation-Skipping Transfer Taxes (GSTT) – imposed on transfers to grandchildren or others more than one generation removed
Federal Exemptions and Rates
As of 2025, the federal estate and gift tax exemption is $13.99 million per individual (and $27.98 million for married couples with proper planning). Any amount above that is taxed at 40%.
Annual Gift Tax Exclusion
You can give up to $19,000 per person per year (or $38,000 per couple) without reducing your lifetime exemption. This is a simple and powerful way to reduce your taxable estate over time.
Lifetime Gifts and Estate Tax
Any gifts over the annual exclusion reduce your lifetime exemption. For example, if you give a child $119,000 this year, only $19,000 is excluded, and the remaining $100,000 counts against your lifetime gift and estate tax exemption.
If you’re leaving assets directly to grandchildren or others more than one generation below you, you may be subject to the Generation-Skipping Transfer Tax (GSTT). Like the estate and gift tax, there’s an exemption, and the top tax rate is 40%.
We help clients use tools like dynasty trusts and GSTT-exempt gifts to pass wealth efficiently across generations.
Married couples can take advantage of portability, which allows a surviving spouse to use any unused portion of their spouse’s federal estate tax exemption. However, this only works if the estate of the first spouse to die files a timely estate tax return—even if no tax is owed.
It’s also important to know that portability does not apply to GSTT exemptions. In blended families, relying solely on portability may also lead to unintended consequences, such as accidentally disinheriting children from a prior marriage.
Our firm helps clients decide when to use portability and when to rely on more traditional planning tools like credit shelter trusts or marital deduction planning.
Rhode Island currently has a state estate tax that applies to estates over $1,802,431 (for deaths in 2025; indexed annually). The top rate can be as high as 16%. There is no gift tax and no inheritance tax, but estates that exceed the exemption will owe a state-level estate tax.
We help Rhode Island residents:
Review whether they are approaching the exemption threshold
Use gifting strategies and irrevocable trusts to reduce exposure
Coordinate federal and state tax plannin
Massachusetts recently raised its estate tax exemption to $2 million per individual. If your estate exceeds that amount, the entire value of the estate becomes taxable, with rates up to 16%.
Importantly, Massachusetts does not offer portability at the state level. This means married couples who don’t plan carefully may lose one spouse’s exemption.
We help Massachusetts clients:
Use credit shelter trusts to preserve both exemptions
Understand the state-specific impact of gifting and asset titling
Reduce the tax burden on children and other beneficiaries
Our Estate Tax Planning Services
We work with families at many stages of life—young professionals, retirees, and high-net-worth individuals—to craft thoughtful, tax-conscious estate plans. Our services include:
Reviewing your current estate plan and financial snapshot
Estimating potential federal and state estate tax exposure
Designing strategies to reduce or eliminate future estate taxes
Coordinating with your financial advisor or CPA if needed
Preparing or updating your will, trust, and other documents
FAQs: Estate Tax Planning in Rhode Island & Massachusetts
Maybe. The federal exemption is high now. Also, both Rhode Island and Massachusetts have lower state-level exemptions—$1.8 million and $2 million, respectively. Even moderate estates can face state taxes.
You may be subject to estate taxes in multiple states, depending on where the property is located. We can help you assess your situation and adjust your plan accordingly.
Yes. Assets like IRAs, 401(k)s, and life insurance death benefits (if you own the policy) are included in your gross estate for tax purposes. These often push clients over state exemption limits.
Yes. Making annual gifts within the exclusion amount can gradually reduce the size of your taxable estate. Larger gifts may also be effective, depending on your long-term goals and overall net worth.
Portability allows a surviving spouse to use any unused federal exemption, but only if the proper steps are taken. It doesn’t apply to the GST tax or to state-level exemptions, so it isn’t a complete solution.
I decided I wanted to make an impact in people’s lives, so I decided to practice estate planning law. Very important decisions have to be made by individuals during their lifetime to be proactive, to make decisions regarding their long-term care planning, their end of life decisions, where are they gonna leave their assets? How are they gonna leave their assets? So I felt estate planning really gave me the best opportunity to make that important difference in clients’ lives. Estate planning is more than just giving a client a stack of documents. We want to have an ongoing relationship with them so they feel comfortable calling us down the road. So building a strong relationship with our client is really crucial to what we do here. Our goal is to give our clients the peace of mind that they’ve made the right decisions, that they’ve been proactive in their planning.
Ready to Plan Ahead
Estate taxes can take a significant bite out of your legacy—but they don’t have to. With the right planning, you can reduce or even eliminate the impact of these taxes on your family.
Contact Lambros Law Office today to schedule a consultation and explore how we can help you plan with clarity, confidence, and care.
