SimplyTrust Knowledge Base

A: Both states allow revocable living trusts, but there are key differences to understand.

A: Have you ever thought about what will happen to your assets after you’re gone? If you don’t have a clear estate plan, you could be setting your family up for disputes. Without a valid Will, your assets may be distributed according to state laws that might not align with your wishes, leaving your loved ones in confusion and conflict.

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.