What are the tax changes for January 1, 2014?
Q: What are the tax changes for January 1, 2014?
During the 2014 Session, the Legislature changed the Maryland estate tax exemption, increasing it through a series of annual stair steps until it will match the federal exemption in 2019. Currently set at $1 million, the exemption will increas to $1.5 million as of January 1, 2015, $2 million on January 1, 2016, $3 million on January 1, 2017, $4 million on January 1, 2018, and equal to current federal exemption as January 1, 2019.
Therefore, Maryland estate plans are in a state of flux, requiring estate planning documents which remain flexible for both planning for the level of the client’s changing wealth, as well as for the changing State exemptions.