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Stretching Your IRA with a Charitable Trust: A Strategy to be Used Post-SECURE Act

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You have spent decades working and building up your retirement account. You are trying to delay the time in which you are required to start taking distributions from that account. You are then trying to take the smallest amount of money out of that retirement account based on your life expectancy. You do this to try and pay less in income tax. You view your retirement account as a long-term safety … [Read more...] about Stretching Your IRA with a Charitable Trust: A Strategy to be Used Post-SECURE Act

Governor Wes Moore’s Fiscal Year 2026 Budget Proposal: Significant Changes to Maryland Taxes

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Governor Wes Moore’s Fiscal Year 2026 budget proposal has significant changes to Maryland Taxes. Here are the changes and the potential implications. Elimination of Inheritance Tax Maryland imposes a 10% inheritance tax upon death when assets are transferred to certain beneficiaries like nieces, nephews, friends, and other more distant relatives. Governor Moore’s proposal would be to eliminate … [Read more...] about Governor Wes Moore’s Fiscal Year 2026 Budget Proposal: Significant Changes to Maryland Taxes

Your Estate Plan and Tax Filings

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There are many taxes that we pay over our lifetime.  Here is a list of taxes we see while planning and settling estates.  While you are living and if your income is high enough, you will need to pay income taxes to both the Federal Government and the State of Maryland.  The forms generally used to file your income tax returns are the IRS form 1040 and the MD form 502.  In most cases when … [Read more...] about Your Estate Plan and Tax Filings

Final Income Tax Return

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The attorneys at Sinclair Prosser Gasior can guide you through the many duties you have as trustee or personal representative when settling an estate. One of the duties of the trustee and/or personal representative of an estate is to make sure that all income tax returns have been filed for the decedent. This includes filing the final income tax return.  Even though a person is no longer living, … [Read more...] about Final Income Tax Return

How Do Trust Income Taxes Work?

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When thinking about estate planning, we often think mostly about estate taxes. Estate taxes are taxes imposed by both the federal government and a number of states. These taxes will be assessed based on the total value of your assets at your death. At the federal level, as long as those assets are less than $11.7 million, there is no federal estate tax. In Maryland, the threshold is $5 million. … [Read more...] about How Do Trust Income Taxes Work?

Estate Administration and Income Tax

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  A common confusion in estate administration is knowing what income taxes are due after a person’s death.  Now that the Federal and Maryland Estate tax exclusions are increasing, most people will not pay an estate tax on inherited property.  Under the current law, most family members receive inherited assets without paying an inheritance tax.  Capital assets such as stocks, real estate and mutual … [Read more...] about Estate Administration and Income Tax

Who is Responsible to Pay the Debt of a Deceased Loved One?

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  If you've helped settle an estate before or even sorted through the belongings of a deceased love one, you're probably familiar with the debt that continues to accrue following their death.  Recent medical expenses and credit card bills are common, and children handling a parent’s estate are often concerned that they are responsible for paying this debt. Family members are generally not … [Read more...] about Who is Responsible to Pay the Debt of a Deceased Loved One?