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Tel: 301.475.9600
Practice Areas:
Civil
Litigation; Appellate Practice; Business Law; Contracts; Real Estate and
Land Use; Personal Injury and Wrongful Death; Wills and Estates;
Government; Family Law
Education:
J.D., Catholic
University of America
B.A., Gordon College
Admitted:
Maryland
U.S. District Court,
District of Maryland
U.S. Court of Appeals,
Fourth Circuit
U.S. Supreme Court |
Maryland Decouples From Federal Estate Tax Exemption Limits
January 5, 2005.
Leonardtown, Maryland--
For years Maryland Estate Tax
limits followed the Federal Estate Tax - when no Federal Estate Tax was due,
no Maryland Estate Tax was due. Now as a result of a state law change in
2004, this is no longer the case. For decedents dying after December 31,
2003, the applicable exclusion amount for Maryland Estate Tax is effectively
limited to $1 million. Thus every Maryland resident dying after December
31, 2003 with a Federal taxable estate greater than $1 million is exposed to
the potential of a Maryland Estate Tax. This tax may be due even if a
Federal estate tax is not due. This result may come as a surprise to
persons anticipating a full exclusion from Federal and State taxes as a
result of scheduled increases in the Federal estate tax exemptions. Estates
exempt from Federal tax are expected to enjoy increasing Federal estate tax
exclusions on the following schedule:
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$1.5 million currently |
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$2 million beginning
January 1, 2006 |
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$3.5 million beginning
January 1, 2009 |
Tax Attorneys with the
Maryland Institute for the Continuing Professional Education of Lawyers (MICPEL)
estimate that as a result of the new Maryland legislation, an estate tax of
over $60,000 could be due to Maryland on an estate valued at $1.5 million
and currently exempt from Federal tax. This estimated estate tax could
approach $100,000 on estates valued at $2 million as of January 1, 2006.
Actual computation of the tax is complex. You should consult your tax and
legal advisors as to how this new Maryland law could affect the taxable
consequences of your current estate plan, and what appropriate planning
options may be available to you to limit the consequences of this state law
change.
For More Information
Contact:
Alfred A. Lacer, Esq.
P.O. Box 55
Park Hall, MD 20667
email:
info@alfredalacer.com
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