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 In the past four years, Indiana, Kansas, North Carolina, Ohio and Oklahoma have repealed their estate taxes, and Tennessee is slated to repeal its estate tax by 2016.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
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
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.