Forbes Quotes Beth Kaufman on Maryland Estate Tax Changes
The Trump tax cuts made federal estate taxes a thing of the past for most Americans and by doing so wreaked havoc in several states that tied their state estate taxes to federal law. Suddenly, it looked like the threshold for when state estate taxes would kick in was $11.18 million per person in Hawaii, Maine and the District of Columbia (for 2018), and in Maryland (for 2019) and in Connecticut (for 2020). [. . .]
To stop Maryland’s estate tax exemption from rising from $4 million this year to $11 million (indexed) in 2019, state legislators settled on a new fixed dollar amount for the Maryland estate tax exemption for 2019 and after: $5 million. [. . .] One positive change: Maryland added portability, which lets a surviving spouse take advantage of their late spouse’s unused exemption, notes Beth Kaufman, an estate lawyer [at Caplin & Drysdale] in Washington, D.C. Maryland’s inheritance tax remains unchanged.
The estate tax exemption in the District of Columbia would have gone up from just $2 million to $11 million (indexed) this year, but the city council in June reduced the exemption to $5.6 million, retroactive to January 1, 2018. It’s part of the budget being reviewed by the Mayor and is expected to go through as is. The exemption will be indexed starting in 2019, using a special indexing.
For the full article, please visit Forbes’ website.
Excerpt taken from the article “States Rebel, Won't Conform To Trump Estate Tax Cuts” by Ashlea Ebeling for Forbes.