Senior Talk

One man's opinion about issues of importance to seniors who are retired and facing decisons about things they never thought would be of importance to them.

Sunday, August 29, 2004

Maryland Estate Taxes

IS MARYLAND SENIOR FRIENDLY?

Recently legislation was passed in Maryland decoupling the Maryland Estate Tax Exclusion from the Federal Estate Tax Exclusion. As a result an estate of $1,500,000 that is currently estate tax free at the Federal level would be taxed $64,400 by the State of Maryland.

Seniors living in Maryland, or considering relocating to Maryland, now have to consider the wisdom of being a Maryland resident if the value of their estate will exceed the Maryland Estate Tax Exclusion.

For a decedent dying in Maryland after Dec. 31, 2003, the Maryland Estate Tax Exclusion amount is $1,000,000. The current Federal Estate Tax Exclusion amount is $1,500,000 and is scheduled to increase until the year 2010 when it will be completely phased out. There is the possibility, that without Congressional action, the Federal Estate Tax Exclusion will return to $1,000,000 in the year 2011.

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