Estate Tax Update

Congress has now passed new estate tax legislation, and the President has signed it. In 2011 and 2012, each citizen will have a $5 million Federal estate tax exemption, and the tax rate on assets beyond that will be 35%. This is a larger exemption and lower rate than was in effect before 2010. Maryland residents should remember, though, that Maryland only has a $1 million exemption, so many Marylanders will owe a state estate tax, but not a Federal estate tax. Though the Maryland calculation is complex, the tax is usually in the area of 10% or so.

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