Current Maryland Estate Tax Exemption Increases to $5 Million
The New Year introduced drastic developments to Maryland’s estate tax.
The New Year introduced drastic developments to Maryland’s estate tax. Effective January 1, 2019, the Maryland estate tax exemption will be $5 million for individuals dying on or after this date. This is a considerable change from the 2014 law, which gradually increased the estate tax exemption each year, and was anticipated to match the federal estate tax exemption of $11.4 million per person.
New Year, New Maryland Law
The new Maryland law includes a “portability” provision which allows the surviving spouse to use the unused portion of their deceased spouse’s exemption. The portability granted would be in addition to the surviving spouse’s $5 million exemption, so that the surviving spouse could die with a state exemption of $10 Million under certain requirements.
In summation, individuals dying after January 1, 2019, will have a $5 million state estate tax exemption (with portability), and an estimated $11.4 million federal estate tax exemption (with portability). Those who have previously transferred assets to a trust in order to remove assets from their taxable estates may want to unwind those transaction to specifically include those assets in their taxable estates so that their beneficiaries receive the “step-up in basis” value upon their death. If you need to talk to a lawyer about your Maryland Estate Tax, contact the Law Offices of LEVIN GANN P A today.
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