It is important to engage in what is called tax planning to avoid unnecessary taxes at the time of death. Both Maryland and the District of Columbia impose estate tax upon death if the decedent’s estate greater than $1 million in value. The State of Maryland also imposes “inheritance” taxes on distributions to certain beneficiaries who are remotely related to the decedent. At the federal level, estate taxes are imposed on the estate of a person who dies owning assets valued at $5 million or more at the time of death. The value of the estate is determined not by the probate estate; all assets, over which the decedent had control at the time of death, including life insurance and retirement accounts, are included in the calculation. The federal government also taxes gifts in excess of $1 million. There is no gift tax in D.C., Maryland or Virginia. I help my clients understand how this unique feature of state law can work to their advantage.