On Friday, the Third Reading of House Bill 739, regarding an increase in the Maryland estate tax exemption amount, passed the Maryland House of Delegates by a vote of 119-14. This bill is different from the one we highlighted a few weeks ago in the following ways:
- The increase in assets subject to estate tax would not be retroactive to January 1, 2014, but would increase for decedent’s estates after January 1, 2015.
- Instead of increasing the estate tax exemption amount in intervals of $750,000 per year, the tax would increase at intervals of $500,000 per year.
- The change in the rate of increase affects the date at which the Maryland estate tax would be re-coupled with the federal estate tax. Instead of re-coupling on January 1, 2017, it would be delayed until January 1, 2019.