McNamee Hosea, P.A.

Federal and Maryland Estate Tax Law Update: Federal Estate, Gift, and Generation Skipping Transfer (“GST”) Tax -- On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (the “OBBBA”) into law, and it extends key provisions of the 2017 Tax Cut as and Jobs Act of 2017 and eliminates the expiration of certain provisions. As it relates to estate, gift, and generation-skipping transfer taxes, the new law eliminates the expiration of the higher estate, gift, and GST tax exemptions and also increases them effective January 1, 2026. Specifically, the federal estate, gift, and GST tax exemptions will increase from their current level of $13,990,000 to $15,000,000 on January 1, 2026, and they will adjust annually for inflation. Although Congress could still change the law through future legislation, the increased exemption level per the OBBBA is extended indefinitely and does not sunset after a period of time. The federal estate, gift, and GST tax rates are currently 40%, each. Under current law, on a timely filed estate tax return, an election can be made to allow a surviving spouse to use the unused estate tax exemption of his or her deceased spouse.  This election is referred to as the “portability election”.  Hence, with proper planning, a married couple can shelter up to $27,980,000 in assets from estate tax in 2025 and $30,000,000 in assets from estate tax in 2026. Maryland Estate Tax -- In Maryland, the estate tax exemption is $5 million and is not currently scheduled to change. It is not indexed for inflation. However, Maryland does permit the making of a Portability Election on a timely filed Maryland Estate Tax Return. Hence, with proper planning, a married couple can shelter up to $10,000,000 in assets from Maryland Estate Tax. The state of Maryland does not have a gift tax and therefore, making lifetime gifts is an effective way of reducing your exposure to Maryland estate tax. I recommend that you review your existing estate plan with us to make sure that it still meets your goals in light of the enactment of the new legislation. Furthermore, many estate plans provide for distributions and the funding of trusts based on formula clauses, and it is important to review the ramifications of such formula clauses considering the new law. For a detailed explanation of how these changes affect your current estate plan or to set up a meeting to review your current estate plan against these changes in the law, you can call Esther A. Streete at 410-266-9909.

MH Principal James Tuomey Featured in CBS News Coverage of Anne Arundel County Teacher Abuse Trial. Click the link below to read the full story: https://lnkd.in/d_cx6yNF

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Please join McNamee Hosea’s James Tuomey alongside Mark Scheuerman, Marla aside, and Stacey Rice for a joint Criminal Law and Family Law Committee presentation at Level in Downtown Annapolis

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McNamee Hosea Announces Promotion of Three Principals https://lnkd.in/evnV2SUv

McNamee Hosea Welcomes Lissa Betancourt as an Associate of the Firm!