It would wise of people to consider an estate tax bill, regardless of the size of the estate.
There are some forgotten estate taxes that can create problems, according to Wills, Trusts & Estates Prof Blog points out in "Don't Underestimate State Estate Taxes."
Most people will pay some attention to the federal estate taxes, because that tax receives most of the attention in the national media.
For most people that is the only estate tax they do need to worry about. It is the only one that could apply to their estate.
Most people do not need to worry too much about it, since their estates will be below the historically high estate tax exemption at the federal level.
However, eighteen states and the District of Columbia have their own estate taxes.
These state taxes often have much lower exemptions than the federal government.
The estate of someone who has planned only for the federal estate tax, might have to pay a large and unexpected bill to these states to cover the state taxes.
As is the case when the federal estate tax has not been adequately planned for, not planning for state estate taxes can create problems for estates that have few liquid assets and thus no simple way to pay the bill.
An estate planning attorney can guide you in creating an estate plan that meets your unique circumstances. Call (443) 470-3599 today and schedule a consultation with Maryland Attorney Britt L. Stouffer to learn more about Estate or Elder Law and how she can help you.
Reference: Wills, Trusts & Estates Prof Blog (June 8, 2017) "Don't Underestimate State Estate Taxes."
