January 08, 2013

Baltimore Sun quotes Jeff Gonya on fiscal cliff deal’s impact on estate tax

1 min

Venable partner Jeff Gonya was quoted in a January 4, 2013 Baltimore Sun article on the impact the recently passed fiscal cliff deal will have on Maryland taxpayers. Gonya spoke specifically about the estate tax. Last year, a person could shelter up to $5.12 million from federal estate taxes with the rest taxed at 35 percent. Without a deal, that amount was set to drop to $1 million with the rest being taxed at a top rate of 55 percent. As part of the fiscal cliff deal, Congress kept the amount at the 2012 levels and indexed it for inflation but raised the top tax rate to 40 percent.

In the final weeks of 2012 with no tax deal in sight, Maryland attorneys worked frantically helping client set aside money in trusts for heirs before the tax laws changed. “I haven't had any clients call me up with buyer's remorse,” Gonya said. “It's still a good thing to do.”