Tax Planning

Serving Frederick & Montgomery Counties,and the surrounding Maryland communities

Tax Planning


Our tax planning services focus primarily on the effective use of our clients' estate and gift tax exemptions, and strategies to transfer assets to spouses and later generations in the most effective way. Gift planning usually also requires consideration of income tax consequences so that the recipient of property that is likely to be sold is not exposed to capital gains tax that might have easily been avoided.

Maryland has repealed its inheritance tax on property distributable to lineal heirs (e.g., spouses, children, grandchildren), and has broadened the category of beneficiaries who are exempt from inheritance tax. When the inheritance tax does apply, the applicable rate is 10% or more. Maryland still assesses an estate tax, currently on assets in excess of $3 million. The amount exempt from Maryland estate tax is set to increase in 2019 to Federal exemption amount, which is currently about $5.5 million and indexed for inflation. For those with estate tax exposure, the tried and true planning with credit shelter trusts when the first spouse dies may not be the most tax-efficient strategy in the current tax environment. Instead, availing oneself of an opportunity for a second step-up in income tax cost basis by utilizing the “portability” of exemptions between spouses that is now permitted may lead to a better result.

When the Maryland estate tax does apply, it is at a much lower rate than the Federal estate tax. The latter is currently 40%, while the highest Maryland rate is presently 16%.

Practice Areas

Estate Planning & Probate Services

Trusts

There are numerous types of trusts, but the one about which clients most commonly inquire is the revocable trust.

Planning For Incapacity

Planning addresses a broad range of scenarios that can impact a person's care and his or her assets both during life and after death.

Asset Protection

The desire to protect assets often extends beyond concerns related to taxes. At times, the objective is to protect assets for one's own benefit.

Tax Planning

Our tax planning services focus primarily on the effective use of our clients' estate and gift tax exemptions, and strategies to transfer assets.

Charitable Planning

Charitable giving in the context of estate and gift tax planning takes many forms, and as with most tax planning, ranges from simple, outright gifts and bequests...

Entity Creation

Partnerships...We also assist in creating Corporations and Limited Liability Companies for traditional income tax and liability protection purposes.

Estate Planning And Probate Services

Personalized Estate Planning and Probate Services tailored to your family's specific circumstances and needs, your assets and your goals.

Our Clients Recommend Us...

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