Estate Tax Relief Bills Gain Momentum

ANNAPOLIS — Maryland lawmakers are thinking of easing estate taxes this legislative session, a change proponents say would prevent many retirees from decamping to warmer, and less taxed, parts of the country.

While the federal government begins taxing estates after the first $5.25 million, Maryland spares only the first $1 million from its tax, which ranges between 8 and 16 percent. Some lawmakers are concerned this disparity prompts people to leave Maryland when they near retirement age and settle in states like Florida, which does not assess an estate tax. This session of the Maryland General Assembly, several legislators have proffered proposals for making Maryland look more attractive to retirees.

One proposal from Sen. David Brinkley and Delegate Kelly Schulz would gradually raise the state exemption to line up with the federal threshold. The estate of anyone dying after Jan. 1, 2017, would benefit from the full phase-in, according to the bill.
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