Beware of Inheritance Taxes!

Maryland imposes a 10% inheritance tax on all distributions made from a decedent’s estate unless the recipient is in the decedent’s direct blood line or is a non-profit organization (such as a charity). “Direct line” means your parents, children, grandchildren, etc. It does not include brothers, sisters, nephews and nieces. To avoid a tax on a distribution to a beloved cousin, for instance, you should make a gift of the amount which you desire to leave to that person during your lifetime. That amount will not be subject to an inheritance tax because it was not made as part of your will.