A Boutique Trusts & Estates Law Firm

New 3.8% Federal Surtax on Estates, Trusts and Individuals

Tuesday, February 19th, 2013

Section 1402 of the Health Care and Education Reconciliation Act of 2010 amended the Internal Revenue Code by inserting Chapter 2A – “Unearned Income Medicare Contribution”. This new chapter introduces a 3.8% surtax on individuals and estates and trusts. It is important for individuals and practitioners to understand its potential impact and to plan accordingly.

Section 1411(a)(2) of Chapter 2A applies to estates and trusts and imposes a 3.8% surtax on the lesser of the undistributed net investment income for the taxable year or the excess of the adjusted gross income for the taxable year over the dollar amount at which the highest bracket in section 1(e) begins for that year. In other words, for 2013, the surtax will only apply to an estate or trust with an adjusted gross income exceeding approximately $12,000, and the 3.8% rate will apply to the lesser of the undistributed net investment income for 2013, defined as income from interest, dividends, annuities, royalties, rents, etc., or the excess of the adjusted gross income for 2013 over approximately $12,000.

The new 3.8% surtax will also apply to individuals, but only at much higher income thresholds. White the surtax will affect estates and trusts with adjusted gross incomes exceeding approximately $12,000, it will only apply to married couples with adjusted gross incomes exceeding $250,000 and unmarried individuals with adjusted gross incomes exceeding $200,000. In order to take advantage of the differences between the tax regimes, personal representatives and trustees should carefully consider making distributions from estates and trusts.


For Immediate Release

Contact: Jane Frankel Sims


Contact: Frank Campbell


Sims & Campbell Estates and Trusts

Frankel Sims Law and Holden & Campbell
Merge to Form Sims & Campbell

Firm will offer comprehensive Trusts & Estates services through offices in Towson and Annapolis

TOWSON, Md. (April 26,2019)  Frankel Sims Law and Holden & Campbell have jointly announced the merger of their firms to create a boutique Trusts & Estates law firm providing comprehensive services in the fields of Estate Planning, Estate Administration, Trust Administration and Charitable Giving. The combined firm will be named Sims & Campbell and have offices in Towson, Md. and Annapolis, Md.  Jane Frankel Sims and Frank Campbell will lead and hold equal ownership stakes in the firm.

Sims & Campbell will have 9 attorneys and 15 legal professionals that handle every facet of estate and wealth transfer planning, including wills, revocable living trusts, irrevocable trusts, estate and gift tax advice, and charitable giving strategies.  The firm will focus solely on Trusts & Estates but will serve a wide range of clients, from young families with modest resources to ultra-high net worth individuals.  This allows clients to remain with the firm as their level of wealth and the complexity of related estate and tax implications change over time. 

“By joining forces, we have expanded our footprint to conveniently serve clients in Maryland, D.C. and Virginia” said Jane Frankel Sims.  We are seeing some of the greatest wealth transfer in our country’s history, and we want to continue to be on the leading edge of helping our clients maintain and enhance their family’s wealth.  In addition, we aim to serve our clients for years to come, and the new firm structure will allow Sims & Campbell to thrive even after Frank and I have retired.”    

“Jane and I have always admired each other’s firms and recognized the need to provide even greater depth and breadth of focused expertise to help families amass and protect their wealth from generation to generation,” said Frank Campbell.  “Now we have even greater capabilities to make a real difference for our clients.” 

The Sims & Campbell Towson office is located at 500 York Road, on the corner of York Road and Pennsylvania Avenue in the heart of Towson.  The Annapolis office is currently located at 716 Melvin Avenue, and is moving to 181 Truman Parkway in August, 2019.  For more information, visit www.simscampbell.law.