MD Estate Tax Revision Headed To the Governor's Desk
A bill gradually increasing the Maryland estate tax exemption to $5.25 million passed the Maryland State Senate and is headed to the governor's desk. The bill previously passed the Maryland State House of Representatives. It is unclear if the soon-to-be law will further couple the Maryland Estate Tax Exemption to the Federal Exemption by increasing the estate tax exemption with inflation each year. Please see this Washington Post article for more information.
When signed into law, it will cause many Maryland households to revisit the need for trust-owned life insurance to help finance estate taxes. Governor Martin O'Malley has been previously skeptical of increasing the Maryland Estate Tax Exemption; however, with the bill easily passing both the Maryland Senate and House, there will be pressure for him to sign.