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Estate Planning Maryland

Will the Estate Tax Be Repealed?

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How much is the federal estate tax

Timed to coincide with April’s income tax filing deadline, the House of Representatives passed a bill to repeal the federal estate tax. H.R. 1105, the Death Tax Repeal Act of 2015, is hardly destined for success (it is unlikely to pass the Senate, and President Obama has already promised to veto it), but it was the first time in a decade that a repeal bill got to the House floor for a vote.

Representative John K. Delaney (MD-6) voted against the bill. While he acknowledged that the estate tax is not perfect, Rep. Delaney opined that a complete repeal is drastic and irresponsible. The Congressional Budget Office states that the legislation would add $269 billion to the federal deficit. Rep. Delaney suggested that Congress could be spending time on more productive legislation. Rep. Dutch Ruppersberger (MD-2) voted in favor of the bill.

The federal estate tax rate is 40 percent, but there is an exemption that allows $5.43 million to be left to heirs without paying any federal estate tax. That is why opponents of repeal characterize these efforts as helping only the wealthiest individuals. Supporters point out that family farms and businesses can be worth a lot on paper, perhaps because they are situated on valuable land, but that does not mean the heirs can afford to pay the estate tax. Whatever the fate of H.R. 1105, tax reform is likely to remain a prominent topic as presidential campaigns for 2016 elections continue to vie for attention.

The estates, trust and probate attorneys at Longman & Van Grack have extensive experience with future planning documents. We understand that each client’s needs are unique and ensure that our guidance is geared to those needs. Our attorneys are also especially adept at advising clients about estate tax planning in Maryland and Washington, DC. Longman & Van Grack Attorneys Robb Longman and Lona Feldman have helped many clients with their estate planning needs. Contact us today at (301) 291-5027. We have offices in Bethesda and Rockville, Maryland.

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