Maryland Portability - Retroactive to 2011

Beginning 2019, Maryland joined Hawaii in allowing portability of its estate tax exclusion. Unique to Maryland is that it allows portability retroactively for deceased spouses who died between 2011 and 2018. Tax benefits are typically not granted based on facts occurring in past years. This surprising development now places the onus on surviving spouses, professional fiduciaries and advisors to be vigilant in determining the application of these rules.

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The Estate Tax - Being Revived?

This past week was a big one for the venerable estate tax, now 102 years old – Revenue Act of 1916 passed September 8, 2016.  Democrats put forth proposals for stiffening the estate tax – by decreasing the exclusion, increasing the rate and eliminating certain planning techniques (so-called “loopholes”, some of which are currently officially sanctioned by Congress in the estate tax statutes).  Senator Warren advocated a wealth tax.  The Washington Post alone had eight articles about the estate tax from Sunday, February 3rd to February 6th.  The paper’s lead editorial on Monday, February 4th, supported the imposition of a more robust estate tax.

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A Memo to the States - The UTVA is flawed... So Fix It!!!

"The UVTA presents serious problems for estate and tax planners.  For those states that are considering passage of the UVTA, education is tantamount to understanding the underlying dangers of the UVTA.  The statutory solutions present in this newsletter will help neutralize those dangers and allow estate planners and creditors' attorneys to co-exist peacefully within the UVTA realm.

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Alimony, Prenuptial Agreements and Trusts under the New Tax Act

The recent passage of the 2017 Tax Act (the "Tax Act") brought many changes for business and individual taxpayers.  Many of the income tax changes have been highly publicized, such as the decrease of individual income tax rates, the reduction in the taxability of income from certain pass-through entities and the reduction of the state and local tax deduction.

This Alert focuses on the lesser publicized but no less significant impact of the Tax Act on divorce -- even though the changes do not take effect until 2019, the effects can be far reaching.

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