FAQ Friday: Budget Reconciliation and Financing Act of 2024

On Friday, February 7th, Mr. Berger discusses the bill proposed in Maryland - the Budget Reconciliation and Financing Act of 2024. Would reduce estate tax exemption from the present 5 million dollars to 2 million dollars, which could affect a good many of our clients.

This is a very long bill. Three items in this bill affect a lot of our clients. The first is that as of July 1, 2025, it would reduce the estate tax exemption from 5 million to 2 million dollars. In return, it does away with inheritance tax.

There would be higher income tax brackets added as well. Reaching similar to California and Minnesota.

While we have time to plan for these changes, it is important to consider the possibilities now. Maryland does not tax gifts and we still have a high federal tax exemption of 14 million.

Clients can also file for portability if a spouse has passed in the past 4 years.

While this proposal is not final, there are no guarantees and we want to prepare for the possibilities.

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