Estate Exemptions Increase!

The estate exemptions have increased for decedents dying in 2015. An estate is required to file a federal return when the estate’s assets and prior taxable gifts are greater than $5.34 million for a decedent dying in 2014. The exemption increases to $5.43 million for decedents dying in 2015. Virginia’s exemption matches the federal exemption.

The Maryland estate tax exemption remains $1 million for decedents dying in 2014. However, it will increase as follows:

$1,500,000 for a decedent dying in 2015
$2,000,000 for a decedent dying in 2016
$3,000,000 for a decedent dying in 2017
$4,000,000 for a decedent dying in 2018

For a decedent dying in 2019, the Maryland exemption will be equal to the federal exemption amount.

The District of Columbia’s exemption amount is currently $1 million for 2014 and 2015 and will be increasing to $ 2 million in 2016. DC plans to gradually conform to the federal exemption, but only after additional revenue becomes available.

Even though the value of your estate maybe under the exemption amount you may still want to file an estate tax return for portability. Read more below about “Is My Estate Required to File? Why You Should File an Estate Tax Return for Portability”.

If you have any further questions regarding this new law or want to discuss estate planning options, please contact Evelyn Blue via Email or by calling 301-652-6700.