Update on the Maryland Estate Tax

The Maryland Legislature has adjourned for 2014. House Bill 739 and Senate Bill 602 concern the Maryland Estate Tax and were passed by both legislative bodies.

The bills become law on July 1, 2014 and were signed by Governor O'Malley on May 15, 2014.

Here is a short summary of the law:

Upon enactment of the bill, the Maryland estate tax exclusion will gradually increase as follows:

• If you passe away in 2014, your estate will be able to exclude $1,000,000.
• If you pass away in 2015, your estate will be able to exclude $1,500,000;
• If you pass away in 2016, your estate will be able to exclude $2,000,000;
• If you pass away in 2017, your estate will be able to exclude $3,000,000;
• If you pass away in 2018, your estate will be able to exclude up to $4,000,000, and
• If you pass away in 20019, your estate will be able to exclude the full amount of the Federal Exclusion Amount ($5,000,000 adjusted for inflation).