Last week Governor Healey signed into law Bill H. 4104: An Act to Improve the Commonwealth’s Competitiveness, Affordability, and Equity into law on October 4, 2023. The Act makes a significant change to the Massachusetts estate tax laws by increasing the Massachusetts estate tax exemption amount from $1 million to $2 million. This historic change now allows Massachusetts decedents to pass up to $2 million of assets per individual to non-spouse/non-charitable recipients free of any Massachusetts estate taxes. Moreover, the new tax law eliminates the ‘notorious “cliff” effect by providing that only assets in excess of $2 million, rather than the decedent’s entire taxable estate, would be subject to the Massachusetts estate tax. This change is effective retroactively and available for estates of individuals who died on or after January 1, 2023. This is great news for Massachusetts residents!