News & Updates

  Clients often consult us before making substantial gifts.  We find that many of these clients have similar misunderstandings about the tax implications of sizable gifts.  These misunderstandings frequently stem from statements by family, friends, or even other professionals.  The following is our attempt to answer and simplify some common gift

  If your closely held corporation has multiple stockholders, you should have a Buy-Sell Agreement. A Buy-Sell Agreement, also known as a Stockholder Agreement, or Restrictive Stock Transfer Agreement, is an agreement between the shareholders that governs the management and control of a business upon a shareholder’s death, incapacity, bankruptcy, termination of

For most young people, turning 18 is a formative event.  It often means graduating from high school, going off to college, and/or starting a career.  For parents, it means that their child is no longer a child, figuratively and legally.  Most people recognize that 18 is the age of majority,

1.  What is the Spousal Election? We enjoy considerable freedom in choosing who should and should not benefit from our property at death. We can disinherit children and grandchildren and instead benefit charities, friends, or any other individual or organization. However, the American legal system has historically protected widows and widowers

Recent tax law changes have significantly increased both the Federal Estate Tax and Maryland Estate Tax exemptions.  As of January 1, 2019, the Federal exemption per individual is $11.4 Million and scheduled to increase annually with inflation.  The Maryland exemption is frozen at $5 Million per individual.  Married couples can

Several new laws pertinent to estates and trusts were passed during the 2019 Maryland General Assembly legislative session.  The following are summaries of the most significant. Surviving Spouse's Elective Share:  Maryland law has long included statutory provisions designed to protect a surviving spouse from disinheritance.  But a combination of modern probate

A common issue we confront with our business owner clients is a failure to adequately maintain fundamental business records.  While the following discusses the importance of maintaining a corporate minute book, the same considerations apply to the governing documents for other types of entities, partnerships, limited liability companies, etc. A corporation’s

Parents of young children often worry about who will take care of their children if the parents die prematurely. Understandably, most parents’ primary concern in this regard is the day-to-day welfare of the children – i.e., who will ensure adequate shelter, clothing, food, education, etc.  The person responsible for these matters

Personal Representatives (PRs) of Maryland probate estates are normally required to file detailed accountings of estate financial transactions with the Register of Wills, which are then approved by the Orphans’ Court.  This can be tedious and costly. Responding to public pressure for simplification, the Maryland legislature in 1997 enacted a statute

Most of our estate planning clients want the same thing: for their assets to pass to the people they love.  For our clients with children, this typically means they ultimately want to benefit their descendants (i.e., their children, grandchildren, great-grandchildren, and so on).  This article discusses one of the fundamental

  The following is some commonly relevant federal and Maryland income tax information for estates and trusts.  Feel free to bookmark this page for future reference. Ordinary Income Tax Rates for Estates and Trusts 2018 Federal Income Tax Rates for Estates and Trusts Taxable Net Income Federal Tax Not over $2,550 10% of taxable income Over $2,550 but not

The Tax Cuts and Jobs Act (TCJA), effective January 1, 2018, significantly alters income tax planning considerations for individuals and businesses but also impacts fiduciary income tax planning for estates and trusts. One notable change is the elimination of miscellaneous itemized deductions for estates, trusts and their beneficiaries.  Under prior law, many

Very few Marylanders need to worry about Estate Tax when creating or revising their estate plans.  Effective January 1, 2019, only married couples with assets in excess of $10 Million and individuals with assets greater than $5 Million are subject to the tax. The Federal Estate Tax exemption for 2019 is