SimplyTrust Knowledge Base

A: While many people confuse it with the estate tax, the two are entirely different. The estate tax is paid by the estate. The inheritance tax is paid by the person receiving the assets, depending on their relationship to the person who passed.

A: The Maryland estate tax is a tax on the transfer of assets from someone who has passed to their heirs or beneficiaries. It applies when the value of the estate exceeds a certain threshold, known as the exemption amount.

A: A revocable living trust lets you keep control during life and name who handles things after a passing. Assets titled to the trust generally avoid probate, which can save time and paperwork. These points hold true in both states. The limits also match: revocable trusts typically don't offer asset protection.

A: An inheritance tax is paid by beneficiaries, often at different rates depending on their relationship to the person who has passed. An estate tax, on the other hand, is calculated on the total taxable estate before assets are distributed. Maine is among the states that skip inheritance taxes altogether and rely solely on an estate tax with a high threshold.

A: Yes. The tax applies to the Maine taxable estate, which starts from federal concepts and then adds state-specific adjustments. Maine uses brackets of 8%, 10%, and 12% on amounts above the exclusion.

A: A revocable living trust is primarily a probate-avoidance and incapacity-planning tool. You stay in control, and you can change or revoke it anytime. That's true in both Kentucky and Nevada. Revocable trusts are usually "grantor trusts." That means trust income is reported on the grantor's personal return, regardless of where the trust is based. If a Kentucky resident creates a Nevada revocable trust, the income is still taxed to the Kentucky resident at the personal level.