The $1.5 Million Estate Planning Mistake You Can’t Afford to Make
Picture this: You and your spouse spend decades building a business, accumulating assets, and creating a stable life for your family. You believe you’ve done everything right with your estate planning. Then tragedy strikes, and a seemingly minor paperwork error costs your children $1.5 million in unnecessary estate taxes.
This isn’t hypothetical—it’s exactly what happened to the Rowland family in Ohio. Their story highlights the devastating consequences of “good enough” planning and why Maryland families, in particular, must pay attention. With Maryland’s estate tax exemption currently set at $5 million per person, or $10 million per couple when done correctly, mistakes like these can be financially catastrophic—and completely preventable.
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## When “Good Enough” Planning Becomes a Family Nightmare
Billy Rowland built businesses across Ohio, served on charity boards, and seemed to have everything in order. When his wife Fay passed away in 2016, her estate filed the paperwork to preserve her unused estate tax exemption for Billy’s benefit. But the filing left out one key detail: the specific value of each asset.
The IRS ruled the return incomplete. As a result, Billy’s estate couldn’t use Fay’s unused exclusion, and when he died in 2018, his $26 million estate faced a tax bill $1.5 million higher than it should have been. By the time the IRS questioned the return—years later—it was too late to fix.
This kind of mistake doesn’t just happen to wealthy families in Ohio. It happens in Maryland too, and the consequences are compounded here because of the state’s lower exemption compared to the federal limit. Without careful planning, even families with modest estates can find themselves subject to unnecessary taxes.
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## Why the Risk Is Growing for Maryland Families
Under federal law, each person can currently pass nearly $14 million tax-free to heirs, and in 2026 that amount increases to $15 million. But Maryland doesn’t follow the federal rules. Here, the estate tax exemption is only $5 million per person, or $10 million for a couple if done correctly. That gap means many Maryland families—especially business owners and those with real estate holdings—may be exposed to state estate taxes even if they’re below the federal threshold.
To maximize the full $10 million couple’s exemption in Maryland, the first spouse’s estate must be properly administered, with accurate returns and elections filed. Miss a step, and the surviving spouse loses that protection forever. With Maryland’s estate tax rate topping out at 16%, a mistake can cost families millions and force the sale of cherished assets just to pay the tax bill.
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## The Deeper Problem: Planning That Fails When You Need It Most
The Rowland case shows what happens when estate planning is treated as a transaction instead of a lifelong process. Too often, families in Maryland sign a set of documents, put them in a drawer, and assume the job is done. But laws change. Assets grow. Families evolve. And paperwork errors compound over time.
When the first spouse passes away, grieving families are left trying to navigate technical tax rules, deadlines, and elections they’ve never heard of. Without trusted guidance, critical steps get missed—and the family pays the price.
That’s why, at Pillar Oak Law, we focus on Life & Legacy Planning®, not just documents. Our process ensures that your estate plan grows with you, adapts to changes, and—most importantly—actually works when your loved ones need it.
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## A Better Way: Ongoing Guidance and Protection
The good news? These mistakes are preventable when you have the right systems and support in place. At Pillar Oak Law, we:
- Conduct regular reviews to make sure your plan reflects your current life, assets, and Maryland law.
- Preserve both state and federal exemptions for married couples, ensuring you maximize the full $10 million Maryland exemption when done correctly.
- Provide clear communication with your family so no one is left guessing about what needs to be done or when.
- File and monitor all technical requirements, from portability elections to estate tax returns, so your plan doesn’t fall apart because of one overlooked detail.
We don’t just prepare documents—we prepare families.
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## Protect Your Maryland Legacy Today
The Rowland family’s $1.5 million mistake is a powerful reminder: in estate planning, small details have enormous consequences. In Maryland, where the estate tax exemption is only $5 million per person, planning that works isn’t optional—it’s essential.
At Pillar Oak Law, we help families like yours create comprehensive trust-based estate plans that not only avoid probate but also preserve every dollar of available tax exemption. Our Life & Legacy Planning process ensures your legacy is protected, your loved ones are supported, and your plan works when it matters most.
Don’t leave your family’s financial future to chance—or to the IRS. Schedule your complimentary 15-minute Right Fit! today and take the first step toward protecting your life’s work.
