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The Paley Rothman Blog

Paley Rothman shares this library of resources with clients and friends of the firm to help them stay ahead of legal and business developments and trends. Here, you will find helpful tips and tools written by our attorneys. The information in the blogs and articles is not a substitute for legal advice and should not be relied on as such. Should you have any questions or want legal advice, please contact the attorney who wrote the blog or article.

Estate Planning, Tax

MD Legislature Increases Estate Tax Exemption

The Maryland Senate passed a bill that increases the estate tax exemption gradually over the next 5 years, at which time the exemption will be tied to the federal exemption amount. The federal exemption is indexed for inflation, and is expected to approach $5.9 million by 2019. The House voted to pass the same legislation earlier this month. Governor Martin O’Malley is expected to sign the bill into law.

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Estate Planning, Tax

Will the Estate Tax Exemption in MD Increase?

On second reading, the Maryland Senate preliminarily approved legislation increasing the Maryland estate tax exemption for individuals dying after 2014. Senate Bill 602 was amended to increase the Maryland estate tax exemption gradually over the next five years to the federal estate tax exemption as follows:

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Estate Planning, Tax

Is the Maryland Death Tax Facing Extinction?

Not quite, to be sure, but the Maryland House of Delegates passed House Bill 739 (“Maryland Estate Tax – Unified Credit”) increasing the Maryland estate tax exemption (the amount an individual can pass free of Maryland estate tax) gradually over the next five years to the federal estate tax exemption. This bill now moves to the Maryland Senate.

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Employee Benefits, Tax

Health Flexible Spending “Use or Lose” Rule Amended

On October 31, 2013 in Notice 2013-71 the IRS announced a modification to the “use or lose” rule for Health Flexible Spending Arrangements (Health FSAs). Health FSAs permit employers to reimburse employees for health care expenses, such as deductibles and co-pays. In general, these plans are funded by employees through salary reduction agreements.

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