The State of Maryland recently enacted legislation which may have a considerable impact on the estate plans of many Maryland residents. Under this law, which was signed on May 26, 2004, the Maryland estate tax exclusion was frozen at $1,000,000 for decedents dying after December 31, 2003. This will be the case even though the federal estate tax exemption currently is, and in the future will be, considerably larger than this amount. In addition, starting in 2005, the Maryland estate tax will be computed without reference to the deduction under federal law for state death taxes. The net result of these changes will be to subject Maryland residents with taxable estates greater than $1,000,000 to state estate taxes even though there may be no federal estate tax due.