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In the January issue of the McMillan Metro Alert, we advised our clients that the State of Maryland had carved out a limited exemption from the 10% inheritance tax for the devise of an interest in a principal residence jointly owned by domestic partners to the surviving partner along with the requirements for qualifying for the exemption. Because of this change in the law, domestic partners may want

The gift tax annual exclusion allows an individual to gift $13,000.00 (as indexed for 2010) to an unlimited number of donees each year without paying gift tax. In order to qualify for the annual exclusion, however, a gift must be of a “present interest” in accordance with IRC 2503(b). To qualify as a present interest in property, the recipient needs to have an unrestricted right to the immediate

The concept of tenants by the entirety, available only to a husband and wife, is considered by many to be unique to real property. The Maryland Legislature has enacted a law which extends the immunity of all types of property held as tenants by the entirety (“T/E”) from the claims of a spouse’s separate creditors. The statute extends the immunity of T/E to any property, real or personal, which

Earlier this year, the Maryland Attorney General (“AG”) issued a long awaited opinion regarding the treatment in Maryland of same sex marriages validly created in other jurisdictions. While the AG’s opinion did not constitute a change in the laws of Maryland relating to the rights of same sex couples in Maryland to marry in the state, the opinion created quite a furor among the opponents of same

Under the federal estate tax rules as they existed prior to January 1, 2010, the basis of property, whether real or personal, acquired from a decedent by reason of his or her death, was its fair market value on the date of death (or 6 months later, if the later if the alternate valuation date for all assets in the estate was selected). This was called the “step-up” in basis of inherited assets. However,

Because domestic partners in Maryland presently have no legally recognized relationship to one another, when one domestic partner dies, the devise of his or her estate to the other is subject to the Maryland inheritance tax at the rate of ten percent (10%). This is one of the greatest costs for which unmarried couples must plan, either by purchasing sufficient insurance or otherwise. The Maryland

Despite the economy remaining largely in the doldrums, there were a variety of benefits which should not be overlooked by taxpayers who are able to take advantage of them. Keying on those which would have the most likely application for the small, medium and large local businesses which comprise the majority of the Firm’s clientele, as well as the individuals behind them, this article seeks to highlight

There are two things you can count on - death and taxes! Both of these issues can be addressed in a Will. If you die without a Will, the assets of your estate will be distributed according to the laws of intestacy in the state of your domicile. In Maryland, distribution of assets owned by a decedent without a Will is as follows:

• If you are survived by your spouse and have no children

The need for a divorced individual to look at all of his or her beneficiary designations on his or her retirement plans was made clear this week in a unanimous Supreme Court decision which upheld the beneficiary designation set forth in a retirement plan over the waiver of rights to the retirement plan under a divorce decree. In Kennedy v. Plan Administrator for DuPont Savings and Investment Plan,

The Medicare Part D sign-up period for prescription drug insurance coverage during 2009 runs from November 15, 2008 through December 31, 2008. Medicare Part D allows people 65 and older with no other prescription drug insurance and for younger people receiving Social Security benefits, to obtain drug coverage through numerous private health insurance plans. Each of these plans varies in cost and

During all of the pre-election discussions about taxes, one type of tax has failed to generate much interest in the media: the federal estate tax. However, this is of intense interest to any number of people in this area.

The Securities Investor Protection Corporation (hereinafter "SIPC") insures investment accounts in the event of the failure of a brokerage firm that is covered by SIPC (the "covered brokerage firm"). Under SIPC, brokerage accounts in a covered brokerage firm are insured up to $500,000 per account. This may include $100,000 held in the account as cash. When a covered brokerage firm is closed due

The U.S. Treasury Department's Temporary Guarantee Program for Money Market Funds guarantees a $1.00 share price of participating money market fund, if those shares were held on close of business September 19, 2008. The guarantee is triggered if a participating fund liquidates its assets as a result of its net asset value falling below $.995 per share price.

The Emergency Economic Stabilization Act, signed into law on October 3, 2008, has raised the Federal Deposit Insurance Corporation insurance limits on bank accounts in FDIC insured banks to $250,000 per covered account. This increase is effective for the period October 3, 2008 through December 31, 2009.