The good news for UHNWIs residing in Maryland is that the longer they live, the wealthier their heirs will be. The bad news is that if they die within the next four years, their heirs may have to pay state estate taxes.
On May 15, 2014, Governor Martin O'Malley signed into law a bipartisan bill "recoupling" Maryland state and federal estate taxes over the course of the next five years.
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David Albert, CPA, JD, CFP, who was kind enough to put me on his email newsletter list, says in a blog post
that the state disconnected its rules from the federal system in 2004 and enacted a cap of $1,000,000 on its estate tax exemption, even though the federal estate tax exemption is more than five times greater.
As a result of this new law, Albert says the number of Maryland estates that will be exposed to the Maryland estate tax will be significantly incrementally reduced in stages over the next five years, when the Maryland and federal estate tax exemption will be at parity.