Tag: estate planning

Some thoughts on Gift Taxes To Anyone other than your Spouse

Gift-giving is a time-honored tradition that allows us to express our love, appreciation, and generosity towards the people we care about. Whether it’s a token of gratitude, a gesture of support, or simply a way to make someone’s day brighter, gifts hold immense significance in our relationships. However, when it comes to giving substantial gifts to individuals other than our…

What are Death Taxes, and What Do They Mean For Me?

A key component of estate planning is minimizing and planning for the taxes that might be owed.   Each state has its own rules, so this post concentrates on Maryland.  In Maryland, there are typically three potential taxes that might be owed when someone dies:  estate tax, inheritance tax, and income tax. Estate Taxes Estate taxes are taxes imposed on your…

What’s going on with the IRS?

Here are some truths about tax season this year that are very helpful but at the same time very disheartening: The IRS is very behind on its work and can’t keep up.  This is particularly troublesome for people who file paper returns and pay with paper checks.  Presently there are over 7 million individual returns and 2.3 million business returns…

Thoughts on the Newly-Enacted SECURE Act

Recently signed into law, the SECURE Act became effective January 1, 2020, and affects the rights of some people who inherit IRA accounts. Specifically, it applies when an account holder leaves his or her IRA to someone other than a spouse (a friend, child, or other relatives, whom a lawyer would call a “non-spouse beneficiary”). The law changes the time…

Why Singletons Should Prepay for Cremation

Absent prepayment, funeral homes require next-of-kin to agree to cremation for recently-departed loved-ones (“decedents”) who have indicated a preference for the process in their wills. If the decedent was married at the time of death, the surviving spouse can authorize cremation. If the decedent was unmarried but had children, the children must unanimously agree to a cremation. And, if the…

Maryland Updates its State Estate Tax

For years, Maryland has imposed a state-specific estate tax on assets transferred from a recently deceased person to anyone other than his or her spouse. In 2017, the tax was assessed on assets with a total value greater than $3,000,000. For deaths in 2018, the tax is assessed on assets greater than $4,000,000. During the 2018 legislative session, the Maryland…