Newsletters

2025 ESTATE PLANNING UPDATE

As part of our firm’s ongoing commitment to notify our clients of important changes in the law, please be advised of the following federal legislation:

 Corporate Transparency Act

  • The Corporate Transparency Act (“CTA”) became effective on January 1, 2024.  Limited Liability Companies, Corporations, Limited Partnerships or any other entity created by a state filing (“Covered Entities”) created in 2024 are required to file Beneficial Ownership Information (“BOI”) within ninety days of formation.  Covered Entities created prior to January 1, 2024, are required to file BOI by December 31, 2024.  Covered Entities created after January 1, 2025, are required to file BOI withing thirty days of formation.   

  • Information regarding the CTA and reporting requirements can be found at https://www.fincen.gov/boi.  You can file a BOI report directly with FinCen at https://boiefiling.fincen.gov. 

    Federal Tax Law Updates-Effective January 1, 2025

  • The annual gift tax exclusion amount will increase to $19,000 per year per donee or $38,000 per donee if gift-splitting with your spouse.  As in prior years, there is an unlimited exclusion for payments of tuition and medical expenses.

  • The Federal Estate and Gift Tax Exemption is adjusted for inflation annually and will therefore be increased to $13,990,000.

  • The Generation Skipping Transfer Tax Exemption will also increase to $13,990,000.

  • Unless Congress passes new legislation, the Federal Estate and Gift Tax Exemption is scheduled to revert on January 1, 2026, to approximately $6,800,000.

    Maryland Law Updates

  • The Maryland Estate Tax Exemption remains at $5,000,000. Maryland estate tax returns filed for portability purposes may now be filed up to five years from the date of death of the predeceased spouse.  This applies retroactively to decedents dying on or after January 1, 2019.

If you would like to discuss the impact of these changes upon your current estate plan, or if you have any questions concerning the above, please call our office to schedule an appointment.

2024 ESTATE PLANNING UPDATE

As part of our firm’s ongoing commitment to notify our clients of changes in the tax laws, please be advised of the following federal legislation effective January 1, 2024:

  • The annual gift tax exclusion amount will increase to $18,000 per year per donee or $36,000 per donee if gift-splitting with your spouse.  As in prior years, there is an unlimited exclusion for payments of tuition and medical expenses.

  • The Federal Estate and Gift Tax Exemption is adjusted for inflation annually and will therefore be increased to $13,610,000.

  • The Generation Skipping Transfer Tax Exemption will also increase to $13,610,000.

    Maryland Law Updates

  • The Maryland Estate Tax Exemption remains at $5,000,000. Maryland estate tax returns filed for portability purposes may now be filed up to five years from the date of death of the predeceased spouse.  This applies retroactively to decedents dying on or after January 1, 2019.

  • Maryland recently updated its statutory Power of Attorney form to include additional provisions.  The new form contains language allowing an agent to appoint a successor agent, as well as provisions regarding compensation to the agent, joint accounts and a gifting section.

  • Unmarried adults may register as domestic partners by filing a Declaration of Domestic Partnership with the Register of Wills.  Domestic partners will be exempt from inheritance tax.

If you would like to discuss the impact of these changes upon your current estate plan, or if you have any questions concerning the above, please call our office to schedule an appointment.

2023 ESTATE PLANNING UPDATE

As part of our firm’s ongoing commitment to notify our clients of changes in the tax laws, please be advised of the following federal legislation effective January 1, 2023:

  •  The annual gift tax exclusion amount increased to $17,000 per year per  donee or $34,000 per donee if gift-splitting with your spouse. As in prior years, there is an unlimited exclusion for payments of tuition and medical expenses.  .

  •  The Federal Estate and Gift Tax Exemption is adjusted for inflation annually and was therefore increased to $12,920,000.

  •  The Generation Skipping Transfer Tax Exemption also increased to $12,920,000.

  •  The Maryland Estate Tax Exemption remains at $5,000,000.

2022 ESTATE PLANNING UPDATE

As part of our firm’s ongoing commitment to notify our clients of changes in the tax laws, please be advised of the following federal legislation effective January 1, 2022:

  •  The annual gift tax exclusion amount increased to $16,000 per year per donee or $32,000 per donee if gift-splitting with your spouse. As in prior years, there is an unlimited exclusion for payments of tuition and medical expenses.

  •  The Federal Estate and Gift Tax Exemption is adjusted for inflation annually and was therefore increased to $12,060,000.

  •  The Generation Skipping Transfer Tax Exemption also increased to $12,060,000.

  •  The Maryland Estate Tax Exemption remains at $5,000,000.

2020 ESTATE PLANNING UPDATE

As part of our firm’s ongoing commitment to notify our clients of changes in the tax laws, please be advised of the following federal legislation effective January 1, 2020:

  • The Federal Estate and Gift Tax Exemption is adjusted for inflation annually and was therefore increased to $11,580,000.

  • The Generation Skipping Transfer Tax Exemption also increased to $11,580,000.

  •  The Maryland Estate Tax Exemption remains at $5,000,000.

  • The annual gift tax exclusion amount remains at $15,000 per person per calendar year.  Therefore, it is essential that taxable gifts be properly planned and documented.

  • On December 20, 2019, President Trump signed into law the Setting Every Community Up for Retirement Enhancement Act (“Secure Act”).  The Secure Act, which changes the rules regarding both contributions to and distributions from retirement accounts, is effective January 1, 2020 and will not be applied retroactively.  The good news is that the Secure Act removed the age restrictions for contributions to a traditional IRA or 401(k) and increased the age for Required Minimum Distributions (RMDs) from 70 ½ to 72.  The bad news is that the Secure Act practically eliminates the “stretch IRAs” which calculate the RMDs based on the life expectancy of the beneficiary.  There are a few exceptions: surviving spouses, minor children of the retirement account holder until they attain the age of majority, a chronically ill or disabled beneficiary, and a beneficiary who is less than 10 years younger than the decedent.  All other beneficiaries will be required to withdraw the balance of all retirement accounts within 10 years of the account owner’s death.