Big Changes Ahead for Maryland Estate Planning?

Governor Wes Moore has proposed significant changes to Maryland’s estate and inheritance tax laws as part of his new budget plan, and if passed, these updates could have a major impact on estate planning for Maryland families.

What’s Changing?

The two biggest proposed changes are:

• Lowering the Maryland Estate Tax Exemption – Currently, the Maryland estate tax exemption is $5 million per person, meaning estates valued under that amount are not subject to state estate taxes. Under the proposed plan, this exemption would drop to $2 million per person, which means many more Maryland estates could face estate tax liability.

• Eliminating Maryland’s Inheritance Tax – Right now, Maryland is one of the few states that still imposes an inheritance tax, which applies to certain heirs who are not direct family members (like nieces, nephews, and friends). Governor Moore’s proposal would eliminate the inheritance tax altogether, reducing the tax burden on beneficiaries who inherit from non-immediate family members.

What Does This Mean for Your Estate Plan?

If these changes go into effect, they could significantly impact how your estate is taxed and how much your beneficiaries receive. Lowering the estate tax exemption to $2 million means that families with assets above that amount—including real estate, investments, and businesses—may need to adjust their estate planning strategies to minimize taxes. Additionally, eliminating the inheritance tax could have a major impact on which beneficiaries you might choose to include in your planning.

We’re Keeping an Eye on It for You

At Acorn Law, we are closely monitoring these proposed changes and how they may impact our clients. If you’re concerned about how this could affect your estate plan, now is a great time to review your plan and explore strategies to protect your legacy.

Stay tuned for updates as we track this proposal and its potential impact. If you have questions or want to discuss your estate planning options, feel free to reach out to our office.