Posted on January 01, 2016 in Uncategorized

For many people, the new year is a time to set goals for the year ahead – a list of to-dos. Consider adding estate planning to your list, as a priority item.

When To Update Your Estate Plan

A lot can happen in a year. If you have an existing estate plan, now is a great time to review your documents and determine whether any changes are needed. The following indicate life events that may require updates to your estate plan:

• Did you get married or divorced, or remarried, since your last update?
• Were you, your spouse or one of your children diagnosed with an illness or disability?
• Have you moved across state lines recently?
• Was a child or grandchild born since your last update?
• Did a loved one pass away?
• Did you experience a significant change in finances, such as retirement or receipt of an inheritance or other windfall?
• Did you purchase or sell a major asset, like a house?
• Did one of your children turn 18 years old since your last update?

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 Posted on November 01, 2015 in Uncategorized

Maryland’s New Estate Tax Exemption

In 2014, Maryland’s estate tax exemption had been $1 million, and increased to $1.5 million in 2015. Over the next four years, this exemption amount will increase as follows:

• $2 million for individuals who pass away in 2016
• $3 million for individuals who pass away in 2017
• $4 million for individuals who pass away in 2018
• $5.9 million or so, to match the federal estate tax exemption then in effect for individuals who pass away in 2019

What Is An Estate Tax Exemption?

An estate tax exemption is the amount of money or assets that are exempt from estate taxes. When you pass away, your estate is subject to estate taxes. However, this tax applies only to estates that exceed the tax exemption. For example, in 2015, the Maryland estate tax exemption is $1.5 million. If someone dies in 2015 with a net estate of $1.6 million, that estate will only be taxed on the $100,000 that exceeds this exemption.

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 Posted on November 01, 2015 in Uncategorized

The holiday season is upon us. For many, that means hitting the mall the day after Thanksgiving in search of the perfect gift. An often overlooked area for gifts? Your own estate.

Think of this as "strategic gifting." Not only will you be giving a loved-one a gift, but you may also reducing the size of your estate, avoiding or minimizing estate taxes, and ensuring your wealth is transferred to the next generation.

Under federal tax laws, you can gift up to $14,000 a year to another individual without incurring any gift tax. Gifts under $14,000 also don’t count against your lifetime combined federal estate and gift tax exemption.

Want to give more? Spouses can each gift $14,000 for a total of $28,000 per recipient; gifts to your child and his or her spouse, from you and your spouse bring the exemption amount to $56,000 per year.

Have a particularly large gift in mind? Consider bunching the gift tax exemptions, by making a partial gift close to year-end and the balance right at the start of the new year.

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