Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
New bill makes it less taxing to die in Maryland
Author: Scarinci Hollenbeck, LLC
Date: April 14, 2014
Key Contacts
Back
Maryland became the latest state to reduce its tax burden on high net-worth citizens in the form of a higher exemption for its estate tax, according to Forbes. The Maryland Senate passed a measure March 20 that will gradually raise the state exemption from $1 million to the projected $5.9 million federal exemption by 2019. The current inflation-indexed federal estate tax exemption is $5.34 million.
This move is notable in that Maryland is a staunchly Democratic state, indicating that easing the so-called “pain of death” tax isn’t only a Republican issue, according to the news source. Maryland is one of the 19 remaining states, including the District of Columbia, that still imposes an estate tax. In the past four years, Indiana, Kansas, North Carolina, Ohio and Oklahoma have repealed their estate taxes, and Tennessee is slated to repeal its estate tax by 2016.
The increase in the Maryland estate tax exemption will reduce the tax liability on a large number of its citizens, but high net-worth individuals should be aware that a separate inheritance tax may be assessed, depending upon to whom they leave their money, Forbes reported. While immediate family members are exempt from the inheritance tax, a nephew, aunt or friend, for example, would not be.
Opponents of the bill contended that wealthy individuals do not commonly leave the state for tax issues, according to Southern Maryland Today.
“A lot of people when they get to an older age want warmer weather,” Prince George’s County Democrat Sen. Paul Pinsky said in the debate, according to the news source. “Many people move south not because of estate tax, but because of warmer weather. No one has shown me, or shown any of us, that people leave because of our estate tax exemption.”
Pinsky also pointed to the fact that Maryland has the highest number of millionaires per capita, Southern Maryland Today reported. Baltimore City Democrat Sen. Catherine Pugh, however, called attention to the 2013 and 2014 Forbes articles, titled “Where Not To Die,” which both named Maryland.
“We don’t want articles written like that,” Pugh said.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.