Delaney Stafford has the expertise help you understand the potential state and federal tax burdens applicable to your estate and help you plan to minimize your tax burden. The state and federal gift and estate tax landscape is complex and constantly changing, requiring a keen understanding of the transfer tax system and the flexibility to respond to changes.
The taxes levied on the transfer of large estates can substantially impact the amount left for your heirs. Effective January 1, 2021, the District of Columbia’s estate tax applies to the value of estates in excess of $4 million (a $1.7 million reduction from the 2020 exemption amount). In Maryland, the exemption amount is $5 million per person. In both D.C. and Maryland, the estate tax rate can be as high as 16% depending on the size of the estate.
At the federal level, the unified exemption amount (the amount that can pass free of gift and estate tax to your desired beneficiaries) is currently $11.7 million per person ($10 million, adjusted for inflation). On December 31, 2025, it is scheduled to be reduced to its 2017 level of $5 million per person, indexed for inflation.
Minimizing the application of state and federal transfer taxes requires careful attention to the changing tax landscape and thoughtful planning. We can analyze your estate and, using lifetime gifting and careful planning, help structure your affairs for maximum tax efficiency.