Estate Planning Guide
Estate Planning in Maryland: A Complete Guide
Here's what surprises most Maryland residents when they first sit down with an estate attorney — the rules here aren't what most people expect. Maryland is one of only two states (with New Jersey's former system) to have had both a state estate tax and a state inheritance tax simultaneously. Understanding both is essential for Maryland residents.
Maryland Probate
Maryland probate is supervised by the Orphans' Court (a specialty court in each county) and is more formal than in many states. The process typically takes 9-18 months. Orphans' Court approval is required for fiduciary fees and distributions.
Maryland Estate Tax
Maryland has a state estate tax with a $5 million per-person exemption (2024). Rates range from 0.8% to 16%. Maryland also has a 10% inheritance tax on assets passing to non-exempt heirs (not spouses, children, grandchildren, parents, or siblings).
Key facts for Maryland residents
These are the things that genuinely matter when you're building an estate plan in Maryland — the details that affect your family directly.
- 1
Maryland state estate tax applies to estates over $5 million (2024)
- 2
Maryland inheritance tax applies to non-exempt beneficiaries at 10%
- 3
Spouses, children, grandchildren, parents, and siblings are EXEMPT from inheritance tax
- 4
Probate supervised by Orphans' Court — unique to Maryland
- 5
Small estate affidavit available for estates under $50,000
What makes Maryland different
Every state has quirks that can trip you up. These are the considerations that are specific to Maryland— and the ones most people don't find out about until it's too late.
Dual tax: estate tax on total estate plus inheritance tax on certain heirs — requires careful planning
Orphans' Court supervision adds oversight but also formality and time
Maryland does not have estate tax portability between spouses
High home values in Montgomery, Howard, and Anne Arundel counties push estates into taxable territory
Chesapeake Bay waterfront property is a significant and appreciating estate asset
Documents most used in Maryland
These are the documents Maryland families rely on most. Having them in place gives your family clarity and protects your wishes.
Revocable Living Trust
Credit Shelter Trust
Last Will and Testament
Maryland Advance Directive
Durable Power of Attorney
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Frequently asked questions about estate planning in Maryland
Does Maryland have both an estate tax and an inheritance tax?
Yes — Maryland is one of only two states with both. The Maryland estate tax has an exemption of $5 million with rates up to 16%. Maryland also has an inheritance tax of 10% on transfers to most non-direct-family beneficiaries. Direct family members (spouse, children, parents, grandparents) are exempt from the inheritance tax.
What is Maryland's estate tax exclusion for spouses?
Maryland allows the unused estate tax exemption of a deceased spouse to be transferred to the surviving spouse (portability). A surviving spouse can effectively shelter up to $10 million from Maryland estate tax. This requires timely election after the first spouse's death.
How does Maryland probate work?
Maryland probate is administered through the Orphans' Court in each county. Maryland has a streamlined 'small estate' procedure for estates under $50,000. Standard probate typically takes 9–18 months. Revocable living trusts avoid probate and are widely recommended.
What is Maryland's unique legacy retirement program for farmers?
Maryland has several farmland preservation programs (Agricultural Land Preservation Foundation, Rural Legacy Program) that provide significant payments to farmers who place their land in conservation easements. These have estate planning implications — easement value is removed from the estate while providing cash or tax benefits.
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Important disclaimer
This content is for general informational purposes only and does not constitute legal, tax, or financial advice. It was created with the assistance of AI and may contain inaccuracies. State laws change frequently — always consult a qualified attorney or financial advisor in Maryland before making estate planning decisions.