When considering your own estate or someone else’s, don’t forget your potential liability for state death taxes.
With the new estate tax laws in place, including the $5 million exemption ($10 million for a married couple), many people are enjoying a false sense of security about any potential estate tax liability. First, as Forbes recently pointed out, keep in mind this new generous law expires at the end of 2012 … and it’s anyone’s guess what will happen next.
In the meantime, also remember that Maryland imposes an estate tax on any estate greater than $1 million. The federal estate tax rate runs 35 percent, and the highest Maryland rate is 16% (applied on the first $300,000 over $1 million).
Forbes has a handy chart here for you to review the impact of combined state and federal estate taxes by state. You can learn more about the estate and gift tax rules at the Lawyers Quill Section of our website.
Reference: Forbes – Robert W. Wood (July 7, 2011) “Will Ohio Estate Tax Repeal Trigger More?”
Annapolis Estate Planning Attorney