Estate Planning Tip: You May Be Able to Qualify for a Real Estate Tax Exemption

Did you know that seniors are eligible to reduce their real estate property tax bill if they meet certain state and local requirements? As part of the estate planning process, proper counseling should also include taking full advantage of tax programs that are available to alleviate the tax on your estate while you are alive as well as after you die. For example, in Maryland, Virginia, and District of Columbia, there are programs allowing credits to be applied against your property tax bill, as long as the property taxes exceed a fixed percentage of your gross income. Basically, this places a limit on the amount of property taxes you must pay based upon your income. However, each state has specific requirements that must be met before you can access this tax exemption program. For example, in Maryland, you must meet the following four requirements: You must own, or have a...