Estate Tax Planning for High-Income Families in Bowie, MD | Haskell & Dyer
If you live in Bowie and have worked hard to build up your home, retirement savings, or business, congratulations.
But here’s something most families don’t know until it’s too late:
Maryland has an estate tax, and the threshold is much lower than the federal level.
Even if you’re nowhere near what the federal government considers a “high net worth” estate, your family could still owe thousands in taxes when you pass away.
Fortunately, there are smart ways to plan and reduce or even eliminate that risk.
Let me walk you through how we do that.
Maryland’s Estate Tax: Why Bowie Families Need to Pay Attention
As of now, the federal estate tax exemption is over $13 million per person.
That means most Americans don’t have to worry about the IRS taking a cut of their estate.
But Maryland? We have our own rules.
Maryland’s estate tax exemption is only $5 million.
That includes everything: your house, life insurance, retirement accounts, cryptocurrency, investments, and any business assets.
And if your estate is even a little over the line, your heirs may face a hefty bill.
In Bowie, where real estate has grown in value, and many residents have sizable retirement portfolios or business interests, this tax is more common than people think.
Lifetime Gifting: Give While You’re Alive
One way to reduce the size of your taxable estate is to start giving while you’re living.
Maryland doesn’t currently tax lifetime gifts like the federal government does.
You can give up to the annual exclusion amount each year per person—tax-free—and reduce your estate’s total value in the process.
This is a great way to support your children or grandchildren now, while also easing future tax burdens.
Trust Planning That Works
Another smart strategy is setting up irrevocable trusts that remove assets from your estate.
For example, you might move life insurance into an ILIT (Irrevocable Life Insurance Trust), or place appreciating assets into a Grantor Retained Annuity Trust (GRAT).
These tools are complex, but powerful.
They require careful planning, which is where I come in.
I help Bowie families structure trusts that reflect their goals while also staying compliant with state and federal law.
Don’t Forget Charitable Giving
Charitable donations aren’t just good for the soul; they can be suitable for your estate plan, too.
If you’re already giving to your church, alma mater, or a local nonprofit, you can structure that giving through your estate.
We use strategies like charitable remainder trusts or bequests to reduce your taxable estate and support causes you care about.
Plan Now, Save Later
No one likes talking about taxes, but your family will thank you for thinking ahead.
Estate tax planning isn’t just for the ultra-wealthy.
If you own a home in Bowie, have a healthy 401(k), or run a business, it’s time to start the conversation.
Let’s take a closer look at your full estate picture and build a plan that protects your legacy without leaving your loved ones with a surprise tax bill.
👉 Book your consultation online now or call us directly at 301-627-5844.
Matthew J. Dyer, Esq.
Estate Attorney | Haskell & Dyer, Upper Marlboro, MD
