Are you preparing your estate in Maryland? It’s important to be aware that there are two sets of taxes that cover your estate as well as the inheritance you leave. These taxes need to be known by you so that you can prepare for their effects.
Who does Maryland’s estate tax apply to?
Estate planning in the state of Maryland can sometimes be a complex and tricky affair. This is due to the fact that there may be extra taxes to figure out.
One of the most common will be an estate tax. If the total value of your estate is judged to be worth less than $5 million, you have nothing to worry about. But if the value is above this amount, the estate tax will be applied.
The rate of tax that you pay above $5 million will be graduated. You can consult a chart online to see what the total amount may be. Remember that this tax will not apply to the first $5 million; it only applies to the amount you are worth above that figure.
Who does Maryland’s inheritance tax apply to?
One thing to keep in mind as you organize your assets is that the state of Maryland does have an inheritance tax. The conditions of the Maryland inheritance tax will not apply to:
• The deceased’s child or direct descendant
• The spouse of a child or direct descendant
• Spouse
• Parent
• Grandchild
• Sibling
• Stepchild
• Stepparent
If you decide to leave your money or other assets to anyone else, the Maryland state inheritance tax will be judged applicable. It’s important to keep this in mind when you’re planning how to leave assets behind via a will or trust.