For many families in Duxbury and nearby towns like Marshfield, Kingston and Pembroke, retirement brings a set of very local questions. Do we stay in the house? What happens if we spend winters somewhere warmer? How does the Massachusetts estate tax affect a family whose home has grown in value? Here's a checklist to work through, ideally a few years before you stop working.

1. Decide what to do about the house

For many South Shore families the home is the largest asset, and it's a lifestyle decision as much as a financial one. The usual options:

  • Stay. Plan for property taxes, insurance and upkeep to continue, and for changes that make the house easier to live in later.
  • Downsize locally. Freeing up equity can fund retirement, but count moving costs and taxes on any gain. Federal law lets many homeowners exclude up to $250,000 of gain, or $500,000 for married couples filing jointly, if they meet the ownership and use tests.
  • Split the year. Spending winters in Florida or elsewhere raises questions about which state is legally home. If you're considering it, see our Vero Beach page.

2. Check your estate against the Massachusetts estate tax

Massachusetts taxes estates above $2 million, a much lower line than the federal exemption. A paid-off home plus retirement savings can cross it sooner than people expect. Each spouse has their own threshold and it isn't shared automatically, so how assets are titled between spouses can matter. Review your will, any trusts and your beneficiary designations with an estate attorney.

3. Plan your Social Security and Medicare timing

  • Medicare: Your initial enrollment window opens three months before the month you turn 65. Missing it can mean lasting penalties, even if you're still working, depending on your employer coverage.
  • Social Security: Waiting past full retirement age increases your benefit, up to age 70. For married couples, the higher earner's choice also affects the survivor benefit.
  • Massachusetts doesn't tax Social Security, which helps when you plan your retirement income.

4. Build a retirement paycheck

Turning savings into steady income takes a plan for which accounts to draw from, in what order and how much each year. It's worth thinking about:

  • Which years might suit Roth conversions, often after work stops but before required minimum distributions start. A conversion means paying tax on the converted amount now, so the numbers need to work.
  • How large withdrawals or a home sale could push you into a higher tax bracket or raise Medicare premiums.
  • Keeping enough in cash and steady investments so a market dip doesn't force you to sell at a bad time.

5. Plan for the coastal home

Owning near the water brings its own costs. Flood and homeowners insurance, storm repairs and maintenance belong in the retirement budget, and premiums can change over time. If you hope to pass the house to your children, talk with them and your attorney about how that would work.

6. Get the paperwork in order

  • Durable power of attorney and healthcare proxy
  • Updated beneficiaries on IRAs, 401(k)s and life insurance
  • A list of accounts and contacts your family can find

How we help

We work with families in Duxbury and across the South Shore, in person by appointment or by video, and we coordinate with your estate attorney and tax professional. Learn more on our Duxbury page, work through our retirement checklist, or request a complimentary consultation.

Sources

This article is general information, not individualized investment, tax or legal advice. Tax and estate laws change, and how they apply depends on your circumstances. Please consult your tax and legal advisors. Radius Wealth Management LLC provides individualized advice only where permitted to do so.