• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sinclair Prosser Gasior

Annapolis Estate Planning Attorneys

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Call Now: (410) 573-4818

Attend a Free Workshop Trustee School

  • Home
  • About Our Firm
    • About Our Firm
    • Founding Attorneys
    • Meet Our Team
  • Services
    • Annapolis, MD Asset Protection and Business Planning
    • Estate and Gift Tax Figures
    • Annapolis, MD Elder Law & Medicaid Services
    • Annapolis, MD Trust Administration & Probate
    • Family-Owned Businesses & Farms
    • Annapolis, MD Incapacity Planning
    • Annapolis, MD LGBTQ Estate Planning
    • Annapolis, MD Pet Planning
    • SECURE Act
    • Annapolis, MD Special Needs Planning
    • Estate Planning for Young Families
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Definitions
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Asset Protection Planning
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Power of Attorney
      • Probate Avoidance
      • Trust Administration & Probate
      • Wills
    • Is Your Estate Plan Outdated?
    • Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Trust Administration
      • Estate Planning for Niches
    • Top 10 Estate Planning Techniques
    • Newsletters
  • COMMUNITIES WE SERVE
    • Anne Arundel County
      • Annapolis
      • Crownsville
      • Davidsonville
      • Highland Beach
      • Millersville
    • Baltimore County
    • Calvert County
      • Dunkirk
      • Huntingtown
      • Owings
    • Charles County
      • Charlotte Hall
      • Waldorf
    • District of Columbia
    • Howard County
    • Maryland
      • Clarksville
      • Columbia
      • Ellicott City
    • Prince George County
      • Bowie
      • Fort Washington
      • Glenn Dale
    • Queen Anne’s County
      • Grasonville
      • Queenstown
      • Stevensville
    • St. Mary’s County
      • Charlotte Hall
      • Leonardtown
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
  • Make A Payment
  • Client Portal
Home / General / Tax Law Changes for 2022

Tax Law Changes for 2022

January 18, 2022 by Jon J. Gasior, Estate Planning Attorney

“Tax Law Changes for 2022” by Attorney Jon J. Gasior (Audio)

Since 2011, the federal estate tax has changed at the beginning of each New Year. As such, it is important to review the estate tax landscape both at the federal and state level. Below, we will discuss the estate planning tax laws.

First, in Maryland there is a $5 million estate tax exclusion. What that means is that if you pass away with anything less than $5 million, there is no estate tax owed to Maryland. We can often double this number for married couples using a variety of strategies. This number remains unchanged heading in to the beginning of 2022, however, Maryland holds their annual legislative session at the beginning of the year and through the spring. It is possible this figure could change, although with the current climate, it is my opinion it will remain unchanged for 2022.

Second, the federal estate tax exclusion was $11.7 million for 2021. By way of a little bit of history, in 2011, the federal estate tax exclusion was set to $5 million and indexed for inflation. This meant that each year there were incremental adjustments made. However, in 2017 the Trump Tax Cuts and Jobs Act doubled the exemption to $10 million indexed for inflation. That is how we ended up at $11.7 million for 2021. In 2022, the adjustment for inflation brings the current exemption up to $12.06 million. As is the case for the Maryland exemption, we can often double that for married couples.

Additionally, at the federal level there is a gift tax exclusion. The gift tax exclusion was also increased to $16,000 per year. This means that any person can give any other individual up to $16,000 as a gift in 2022 without having to report the gift to the IRS. If the gift exceeds that amount, the giver of the gift will have to report it to the IRS and file a gift tax return.

As we look ahead in estate planning, it may seem that for most people there is no need to worry about estate taxes. That is true for the time being. However, the Trump Tax Cuts and Jobs Act increase in the estate tax exemption is slated to expire January 1, 2026 and will revert back to $5 million. Additionally, President Biden has proposed a reduction down to $3.5 million and an elimination of the step up in basis rules. It is critically important to pay attention to any proposed changes because if Biden’s proposals pass, it would fundamentally change estate tax planning.

If you have any concerns about estate taxes, please contact us today.

  • Author
  • Recent Posts
Jon J. Gasior, Estate Planning Attorney
Jon J. Gasior, Estate Planning Attorney
Attorney/Owner at Sinclair Prosser Gasior
His personal experience with family and the problems that resulted from their failure to create an estate plan resulted in his desire to learn more about this area of the law. From his work in the Elder Law Clinic, he further realized the need to plan not only for death, but also for incapacity during their lifetime.
Jon J. Gasior, Estate Planning Attorney
Latest posts by Jon J. Gasior, Estate Planning Attorney (see all)
  • Helping Your Family Through Estate Planning - September 21, 2022
  • Estate Planning Scams - August 16, 2022
  • What is the Maryland Trust Act? - July 11, 2022

Filed Under: Estate Planning, General, Tax exemption, Taxes

Other Articles You May Find Useful

Annapolis probate attorney
How Social Media Posts Might Impact a Will Contest
Bowie estate planning attorneys
Can I Prevent Someone from Contesting My Will?
Estate Planning Mistakes
living trust
Three Things a Living Trust Won’t Accomplish
What is the Most Important Estate Planning Document?
Is a Corporate Trustee the Right Choice for Me?

About Jon J. Gasior, Estate Planning Attorney

His personal experience with family and the problems that resulted from their failure to create an estate plan resulted in his desire to learn more about this area of the law. From his work in the Elder Law Clinic, he further realized the need to plan not only for death, but also for incapacity during their lifetime.

Primary Sidebar

Download our free estate planning worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Testimonials

5 Stars
Client Review
September 3, 2020
    

We initiated estate planning following a presentation by Sinclair Prosser Attorney Jon Gasior. We were so impressed, we contracted with them to complete our estate planning. Subsequently, we assembled information on our assets and Sinclair Prosser Gasior did the rest. Correspondence was communicated to our financial institutions and the estate was established. We were very pleased with the courteous manner of the Sinclair Prosser Gasior staff. However, it was their professionalism that made us satisfied we chose this firm to handle our estate. We have nothing but praise for Sinclair Prosser Gasior .

default image
– Walter K.

Blog Subscription

Sign up for our blog to receive all of our latest estate planning news and updates!
  • This field is for validation purposes and should be left unchanged.

ANNAPOLIS

900 Bestgate Road
Suite 103, Annapolis, Maryland 21401
Phone: (410) 573-4818
Fax: (410) 573-2802

BOWIE

4201 Mitchellville Road
Suite 403, Bowie, MD 20716
Phone: (301) 970-8080
Fax: (410) 573-2802

MILLERSVILLE

1520 Jabez Run Rd
Suite 300, Millersville, Maryland 21108
Phone: (410) 573-4818
Fax: (410) 573-2802

WALDORF

Hamilton Centre II
3261 Old Washington Road, Suite 2020 Waldorf, MD 20602
Phone: 800-366-4615

Map

map for office

Footer

footer logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Maryland Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

© 2023 American Academy of Estate Planning Attorneys| Privacy Policy | Contact Us | Disclaimer | Site Map