Estate planning rules in Maryland

Key takeaway

Maryland estate planning rules address estate administration, small estates, will execution, inheritance tax, estate tax and powers of attorney. For property owners, surviving spouses and adult children, Maryland distinguishes the administration of estate property from the tax treatment of property passing through probate and through other forms of ownership or transfer.

Estate administration and small estates

Maryland probate includes managing estate property, handling expenses and claims, and distributing property to heirs. Maryland's Register of Wills handles estate-opening paperwork and records. Maryland's Orphans' Court can decide legal issues related to estate administration.

Maryland law permits the small-estate administration process for an estate with administration property valued at $50,000 or less at death. Maryland provides a separate $100,000 threshold when the surviving spouse is the sole heir or legatee. Maryland's spouse-specific threshold applies to administration property valued before the initial account is filed.

Electronic and remote will execution

Maryland's specified will-execution procedures place the testator and all witnesses in the physical or electronic presence of one another and a supervising attorney during signing.

Maryland treats a certified will created under the specified electronic or remote-witnessing procedures as the testator's original document. Maryland recognizes the execution date stated in the certification.

Inheritance tax

Maryland inheritance tax applies to property passing under wills, intestacy, trusts, deeds, joint ownership or other means. Maryland's inheritance tax coverage includes probate and non-probate property, including assets with a named beneficiary. Maryland's Register of Wills collects the tax in the county where the decedent lived or owned property.

Maryland exempts direct or lineal heirs, including a spouse, child, grandchild, stepchild, parent or grandparent, from inheritance tax. Maryland also exempts certain qualifying corporations. Maryland taxes transfers to other individuals at 10%.

Maryland inheritance tax on probate property is due when the personal representative submits an Administration Account showing distribution to a taxable recipient. Maryland inheritance tax payment accompanies the account.

Estate tax

Maryland's estate tax gross estate includes probate and non-probate property. Maryland includes property outside Maryland in which the decedent had an interest.

Maryland's estate tax return filing requirement depends in part on the federal gross estate, adjusted taxable gifts, and Maryland residence or taxable-situs property.

Thresholds and rates change. Check the state's own current figures.

Common questions

Does a Maryland power of attorney remain effective during incapacity?

Maryland law treats a written power of attorney as durable unless the document's terms provide otherwise. Maryland law permits exercise of the authority granted by that document despite the principal's later disability or incapacity.

Does Maryland call for filing a will that is not offered for probate?

Maryland places a prompt filing obligation on the custodian of a document appearing to be a will, even without an offer for probate. Maryland directs filing with the Register of Wills in the decedent's domicile jurisdiction.