Under the One Big Beautiful Bill Act, the federal estate and gift tax exemption rose to $15 million per person — $30 million for a married couple — effective January 1, 2026, indexed annually for inflation. Unlike prior law, there is no built-in sunset, so the higher exemption does not automatically expire.
Does that mean estate planning no longer matters? Not in this region. Maryland imposes its own estate tax with an exemption far below the federal level, plus an inheritance tax on transfers to certain non-exempt heirs. The District of Columbia likewise taxes estates well under the federal threshold. A family that owes nothing to the IRS can still face a meaningful state tax bill without a plan.
And taxes are only part of the picture. Wills, revocable trusts, powers of attorney, and healthcare directives decide who manages your affairs, who inherits, and who cares for minor children — questions every family has, at every asset level.
Practical takeaways: if your plan was built around the old, lower exemption, it may contain formula clauses that no longer do what you intended — have it reviewed. If you have no plan, the new law makes this a calm, deadline-free moment to put one in place. And if your estate may exceed state thresholds, lifetime gifting strategies deserve a fresh look.
Tokpa Law Group prepares wills, trusts, and complete estate plans for families in Maryland and Washington, D.C. Schedule a consultation to have your plan reviewed.
This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship.