Posted on November 01, 2015 in Estate Planning

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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