After a one year delay, Congress finally passed new estate tax legislation. Effective for the years 2011 and 2012, the Federal Estate Tax and Generation Skipping Transfer tax Exclusion is Five Million Dollars.
In addition, a surviving spouse can shelter up to Ten Million Dollars from Federal Estate Tax due to the new “portability” rules. The maximum rate for the estate, gift and generation skipping tax is thirty-five percent (35%).
Unfortunately, the Maryland Estate Tax Exemption remains at One Million Dollars as it has for years. Unlike the Federal tax changes, there is no “portability” for spouses with the Maryland Estate Tax Exemption. Therefore a bypass trust can help preserve the Maryland exemption amount for both spouses.
REMINDER TO ALL CLIENTS
The law firm of J. Neil Lanzi, P.A. handles personal injury cases (automobile, pedestrian, bicycle, motorcycle), general business (formation, LLC, sale), zoning, real estate and development, estate planning and probate.