Maryland recently introduced new estate tax legislation.
Do you live in Maryland or have a family member living there?
Perhaps you are planning a move to this state in the near future.
You will want to make yourself aware of the estate tax laws of Maryland either way.
According to a recent LegiScan article titled“MD HB308,” Maryland recently updated its tax law.
The estate tax exclusion for the state is $5 million per person starting January 1, 2026.
This amount will be indexed for inflation, but it does carry an option for portability.
What does this mean?
The executor of the estate can make an election so any of the exempt amount not used by the deceased spouse with be added to the exemption available to the widow or widower.
Are any other tax laws changed?
The maximum estate tax rate will remain at 16 percent, and the inheritance tax will also remain the same.
The surviving spouse and children are exempt from an inheritance tax.
The maximum Maryland estate tax rate of 16% is not altered with the new legislation.
What if you die in 2018?
The exclusion amount is $4 million, not indexed for inflation.
Portability would also not be an option.
Regardless your state of residence, an experienced estate planning attorney admitted to practice there will be able to explain and plan for the tax laws applicable to your estate.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: LegiScan (April 5, 2018) “MD HB308”