How Much Can You Transfer Free of the Estate Tax

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HOW MUCH CAN YOU TRANSFER FREE OF THE ESTATE TAX?
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High Net Worth Individuals
If you have been very successful from a financial
standpoint, you have to be concerned about the
estate tax.
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This tax can take a heavy toll on your
financial legacy
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Marital Deduction
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There is an unlimited marital estate tax
deduction.
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You could use this deduction to transfer any
amount of property to your spouse free of the
estate tax.
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However, to use this deduction, your spouse must
be a citizen of the United States.
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Estate Tax Credit or Exclusion
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When it comes to transfers to people other than
your spouse, you could use the estate tax
exclusion to transfer a certain amount tax-free.
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During the current calendar year, the federal
estate tax exclusion is 5.45 million.
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Many people with disabilities rely on Medicaid.
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Inflation Adjustments
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• Each year, the estate tax exclusion can be
  adjusted to account for inflation, so you may see
  a somewhat larger figure in 2017.

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Portability
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The estate tax exclusion is portable between
spouses.
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This means that a surviving spouse could use the
exclusion that was allotted to his or her
deceased spouse.
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As a result, in 2016, a surviving spouse would
have a total exclusion of 10.90 million.
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Federal Gift Tax
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You cannot give gifts while you are living to
avoid the estate tax, because there is a federal
gift tax.
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The 5.45 million exclusion is a unified
exclusion.
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It applies to your estate along with the large
gifts that you give during your life.
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Maryland State Estate Tax
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We practice law in the state of Maryland.
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In our state, there is an estate tax on the state
level.
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The exclusion for the Maryland state estate tax
is 2 million in 2016, 3 million in 2017, 4
million in 2018, and same as the Federal
exemption in 2019.
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Inheritance Tax
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Maryland also has an inheritance tax.
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This tax is levied on transfers to each
individual nonexempt inheritor.
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Wealth Preservation Consultation
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If you are concerned about how taxation can
impact your legacy, our firm can help.
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Contact us to set up a consultation.
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Nicole Livingston
Colleen SinclairProsser
Jon J. Gasior
Victor A. Lembo
Or visit our website www.sinclairprosserlaw.com