New to estate planning? You’re in the right place. A living trust is a legal document that holds your family’s assets so they pass directly to your loved ones — no probate court, no delays, no public record. That’s the core idea.
If you’re just starting to figure this out, I’d suggest reading Having the Estate Planning Talk with Your Parents first — it walks through the whole picture and how to get the conversation started. Then come back here for the Maryland-specific rules.
Already know the basics? Keep scrolling — everything below is specific to Maryland.
You’re not alone in this. As someone who went through the estate planning process with my own aging parents, I know the weight of these conversations — the awkwardness, the guilt, the fear that you’re not doing enough or doing it too late. Take a breath. You’ve found the right place — but I need to be honest with you: Maryland is the only state in the country that imposes both an estate tax and an inheritance tax. That makes planning here more important than almost anywhere else.
Here’s what makes Maryland unique: your family could face two separate taxes on the same estate. The estate tax hits when the total estate exceeds $5 million. The inheritance tax — a flat 10% — hits transfers to anyone who isn’t a spouse, child, grandchild, parent, or sibling. And while there’s a credit mechanism that prevents true double taxation, the interaction between these two taxes is complex enough that families who try to navigate it alone often leave money on the table.
On top of that, Maryland uses the Orphans’ Court system for probate — one of the oldest court systems in the country — and until recently didn’t even allow transfer-on-death deeds for real estate (that changed in October 2025). Many Maryland families also own property in DC or Virginia, creating multi-jurisdictional complications.
Here’s everything you need to know about estate planning in Maryland — no legal jargon, just clear answers from a son who’s been through it.
Two Trust Types in Maryland
Maryland enacted the Maryland Trust Act in 2014 (effective January 1, 2015), codified in Estates & Trusts Article, Title 14.5. Maryland used the Uniform Trust Code (UTC) as a guide but did not adopt it as a uniform act — making several notable modifications, including expanded virtual representation provisions and different trustee notification requirements. Here’s what you need to know:
Revocable Living Trust
- Avoids probate and bypasses the Orphans’ Court for assets titled in the trust
- Remains completely private — the trust document itself is not filed with any court
- Provides incapacity protection — successor trustee steps in without court-supervised guardianship
- You maintain full control — revocable and amendable at any time
- No trust registration required in Maryland
- Avoids ancillary probate for families with property in DC or Virginia
Irrevocable Trust
- Once established, you give up control — that’s the trade-off for the benefits
- Critical for estate tax planning — removes assets from your taxable estate to stay below the $5M exemption
- Can reduce inheritance tax exposure — properly structured trusts may bypass non-lineal beneficiaries who would otherwise face the 10% tax
- Asset protection from creditors, lawsuits, and divorce proceedings
- Maryland does tax trust income at state rates (up to 5.75% state + local surcharge)
- Trust decanting provisions available under the Maryland Trust Act
Maryland has no mandatory trust registration — your trust remains a private document. However, a schedule of trust assets may need to be filed with the Register of Wills (which becomes public record), though the trust document itself, its beneficiaries, and its terms stay private. This partial disclosure is worth understanding — discuss it with your attorney.
Maryland Rules at a Glance
Probate Rules
- Small estate: Estates with assets $50,000 or less ($100,000 if surviving spouse is sole heir) qualify for simplified administration
- Orphans’ Court: Maryland’s dedicated probate court — three elected judges in most counties
- Timeline: 9-12 months typical; 18+ months for complex estates
- Cost range: Statutory cap on attorney + PR fees: 9% on first $20,000, then 3.6% on excess
- Register of Wills: Elected official in each county who handles probate paperwork
Tax Rules & Property
- State estate tax: YES — $5,000,000 exemption; rates up to 16%
- State inheritance tax: YES — 10% on non-lineal heirs
- Only state with BOTH estate tax and inheritance tax
- Credit mechanism: Inheritance tax paid offsets estate tax liability
- Portability: YES — Maryland allows portability between spouses
- Common law (equitable distribution) state
Maryland’s Dual Tax System: The Only State That Does This
This is what makes Maryland truly unique — and truly complex. Maryland is the only state in the country that imposes both a state estate tax (on the total value of the estate) and a state inheritance tax (on individual beneficiaries based on their relationship to the deceased). Understanding how these two taxes interact is essential for any family planning in Maryland.
The Estate Tax
Exemption: $5,000,000 (set by statute in 2019; not indexed for inflation)
Who pays: The estate — not the individual beneficiaries. If the total estate value exceeds $5 million, the estate tax is calculated on the excess using a graduated rate structure with a top rate of 16%.
Rate structure: Maryland’s estate tax uses a graduated rate schedule based on the former federal state death tax credit (IRC § 2011). The rates range from approximately 0.8% on the first dollars above the exemption to 16% on amounts over approximately $10 million above the exemption.
Portability: Maryland does allow portability between spouses — one of the few states with an estate tax that does. If the first spouse dies without using their full $5 million exemption, the unused portion can be transferred to the surviving spouse. A married couple can effectively shelter up to $10 million from Maryland estate tax. But the surviving spouse must file an election on the first spouse’s estate tax return to claim the unused exemption.
Filing requirement: An estate tax return (Form MET 1) must be filed with the Maryland Comptroller for every decedent who was a Maryland resident or who owned Maryland real or tangible personal property, if the gross estate exceeds the applicable exclusion amount or if a federal estate tax return is required.
The Inheritance Tax
Who pays: Individual beneficiaries — based on their relationship to the deceased. This is fundamentally different from the estate tax.
| Relationship to Deceased | Inheritance Tax Rate |
|---|---|
| Surviving spouse | 0% (fully exempt) |
| Registered domestic partner | 0% (fully exempt, effective October 2023) |
| Child, stepchild, grandchild, great-grandchild | 0% (fully exempt) |
| Parent, grandparent, stepparent | 0% (fully exempt) |
| Sibling | 0% (fully exempt) |
| Son-in-law, daughter-in-law | 0% (fully exempt) |
| Everyone else (niece, nephew, friend, cousin, unmarried partner, charity exception) | 10% |
Key points:
- Lineal family members — spouse, children, grandchildren, parents, siblings — pay zero inheritance tax
- The 10% rate hits transfers to anyone outside that circle: nieces, nephews, cousins, friends, unmarried partners, business associates
- Transfers to qualified charitable organizations are exempt from inheritance tax
- The inheritance tax is collected by the Register of Wills in the county where the estate is being administered
The Credit Mechanism: How the Two Taxes Interact
Maryland provides a credit to prevent true double taxation. Any inheritance tax paid on a transfer is credited against the estate tax owed on the same assets. In practice, this means: if a beneficiary pays 10% inheritance tax on their share, the estate’s total estate tax liability is reduced by that same amount. The two taxes overlap but don’t stack.
Example: Suppose a Maryland resident dies with a $7 million estate. $1 million goes to a nephew (non-lineal heir).
- Inheritance tax on the nephew’s share: $100,000 (10% of $1M)
- Estate tax: Calculated on the $2M above the $5M exemption — approximately $130,000-$180,000 (depending on the rate schedule)
- Credit: The $100,000 in inheritance tax reduces the estate tax dollar-for-dollar
- Net estate tax after credit: $30,000-$80,000
- Total tax bill: $130,000-$180,000 (not $230,000-$280,000)
The credit ensures the family doesn’t pay both taxes in full on the same dollars. But the combined burden is still significant — and the planning to minimize it is where a qualified Maryland estate planning attorney earns their fee.
The Orphans’ Court: Maryland’s Unique Probate System
Maryland’s probate court is called the Orphans’ Court — one of the oldest court systems in the United States, dating back to colonial times. Despite the name, it handles all estate matters, not just those involving orphans.
How it works:
- Three elected judges sit in Baltimore City and most Maryland counties
- Exception: In Harford, Howard, and Montgomery counties, Circuit Court judges sit as Orphans’ Court judges (no separate bench)
- Qualification: In most counties, Orphans’ Court judges are not required to be lawyers — they are lay judges handling probate matters. Only Baltimore City, Baltimore County, and Prince George’s County require judges to be bar members.
- Register of Wills: Each county has an elected Register of Wills who handles day-to-day processing of estate paperwork. The Orphans’ Court provides judicial oversight.
Modified administration: If all interested persons consent, an estate may qualify for modified administration — a streamlined process that can be closed within 10 months, with fewer court filings. No Orphans’ Court hearings are required.
Transfer-on-Death Deeds: New to Maryland (October 2025)
Major change: Maryland now allows transfer-on-death deeds, effective October 1, 2025 (House Bill 625). Previously, Maryland was one of the few states that didn’t offer this option for real estate.
How it works:
- Property owner names beneficiaries who automatically receive the property at death — no probate required
- Must be in writing, notarized, and recorded in county land records before the owner’s death
- Owner retains full ownership and control during lifetime — can revoke, sell, refinance, or mortgage at any time
- Transfer is nontestamentary (operates outside the will)
- Tax benefit: TOD deeds are exempt from recordation and transfer taxes for primary and secondary residences
Limitations:
- Only covers that one property — doesn’t protect bank accounts, investments, or other assets
- Doesn’t provide incapacity protection
- Does not override the surviving spouse’s elective share rights
- Property may still be subject to creditor claims and inheritance tax
For Maryland families, this is a welcome new tool — especially for families who want a simple probate avoidance option for a single property. But for families with estates near the $5 million estate tax threshold, or with non-lineal beneficiaries who face the 10% inheritance tax, a comprehensive trust remains essential.
Official Sources
Maryland Code Online · Maryland Orphans’ Court · Register of Wills (Statewide) · Maryland Comptroller — Estate & Inheritance Tax · Maryland State Bar Association · Maryland People’s Law Library · Maryland Advance Directives
What Estate Planning Costs in Maryland
Maryland estate planning costs reflect the state’s proximity to the DC metro area — fees in Montgomery County, Prince George’s County, and Annapolis tend to run higher than Baltimore and the rest of the state. But given the dual-tax system and the complexity of Maryland’s rules, professional guidance here isn’t a luxury — it’s a necessity.
| What You’re Paying For | Typical Range in Maryland | When You’d Use It |
|---|---|---|
| Simple living trust (individual) | $1,500 – $3,000 | Single person, straightforward assets, well below estate tax threshold |
| Living trust (married couple) | $2,500 – $5,000 | Married, may include credit shelter planning for estate tax |
| Full estate plan package (trust + will + POA + advance directive) | $2,500 – $6,000+ | Most families — this is what you actually need |
Geographic variation matters: Montgomery County/Prince George’s County (DC suburbs): $250-$500+/hour, flat fees at the higher end of the range. Baltimore: $200-$450/hour. Annapolis: $200-$400/hour. Rural Maryland (Western MD, Eastern Shore): $150-$300/hour with lower flat fees. Most estate planning work in Maryland is billed on a flat-fee basis.
Probate costs: Maryland caps combined attorney and personal representative fees at 9% on the first $20,000 of the gross estate, plus 3.6% on the excess. On a $500,000 estate, that’s approximately $19,080 in combined fees. Register of Wills filing fees are separate and range from $50 to $2,500+ based on estate value.
Want to understand exactly what you’ll pay? Many Maryland estate planning attorneys offer free or reduced-cost initial consultations. Given the dual estate tax and inheritance tax system, professional guidance is essential for any family with assets above $5 million or with non-lineal beneficiaries. Find Maryland estate planning attorneys below.
With a Trust vs. Without (Probate) in Maryland
| Factor | With a Living Trust | Without (Probate) | Why It Matters |
|---|---|---|---|
| Timeline | Weeks to a few months | 9-12 months typical; 18+ months for complex estates | Your family waits nearly a year for assets to transfer |
| Cost | $2,500-$6,000 (one-time trust creation) | Up to 9% on first $20K + 3.6% of excess (statutory cap on combined fees) | On a $500K estate, probate fees alone approach $19,000 |
| Privacy | Trust document stays private (though asset schedule may be filed) | Public record — will and estate filings are accessible through the Register of Wills | Anyone can look up what your parents owned and who receives it |
| Court involvement | None | Required — Orphans’ Court supervision of estate administration | The personal representative must account to the court every 6 months |
| Multi-state property | One trust covers everything — no ancillary probate in DC or Virginia | Separate probate in each state where real property is located | Many Maryland families own property in DC or Virginia — a trust avoids double or triple probate |
| Incapacity protection | Successor trustee steps in seamlessly | Court-supervised guardianship needed | Guardianship in Maryland is expensive, public, and emotionally difficult |
Small Estate Shortcuts
Maryland offers simplified procedures for smaller estates:
- Small estate: Estates with a gross value of $50,000 or less ($100,000 if the surviving spouse is the sole heir or legatee) qualify for simplified small estate administration — no Orphans’ Court involvement, reduced paperwork, and no filing fees.
- Modified administration: If all interested persons consent, the estate may qualify for a streamlined process that can be closed within 10 months of the personal representative’s appointment.
- Regular administration: The standard process, requiring an administration account within 9 months and subsequent accounts every 6 months until the estate is closed.
Spousal Protections: Maryland’s Augmented Elective Share
Maryland protects surviving spouses with an elective share right. A surviving spouse who is dissatisfied with what they receive under the will (or trust) can elect to take a statutory share instead:
- One-third (1/3) of the augmented estate if the decedent is survived by children or descendants
- One-half (1/2) of the augmented estate if the decedent has no surviving children or descendants
The augmented estate (significantly expanded effective October 1, 2020) captures virtually all of a decedent’s assets — not just the probate estate. This includes jointly owned property, trust assets, beneficiary designations (retirement accounts, life insurance, POD/TOD accounts), and transfers made shortly before death. The only major exclusions are 529 education savings plans, special needs trusts, and transfers made for fair market value.
Why this matters for planning: The expanded augmented estate makes it very difficult to disinherit a spouse in Maryland. Even assets placed in an irrevocable trust or re-titled as joint property with someone else may be pulled back into the calculation. Prenuptial and postnuptial agreements can waive the elective share, but the agreement must be valid and properly executed.
DC and Virginia Cross-Border Issues
Many Maryland families own property in DC or Virginia. A Maryland resident with a DC condo, a Virginia vacation home, or investment property across state lines faces multi-jurisdictional estate planning challenges — including potential ancillary probate in each state and different tax treatment.
The problems:
- Ancillary probate: Real property in another state may require a separate probate proceeding in that state — with separate court fees, separate attorneys, and separate timelines.
- Different tax rules: Virginia has no state estate or inheritance tax. DC has an estate tax (with its own exemption, approximately $4.5M). Maryland has both. A Maryland family could face Maryland estate tax on the entire estate plus DC estate tax on DC property.
- Different probate courts: Maryland uses the Orphans’ Court, Virginia uses Circuit Court, DC uses Superior Court Probate Division — three different systems with different requirements.
The solution: A revocable living trust with property in all three jurisdictions titled in the trust avoids ancillary probate entirely. The trust is administered under one set of rules by one trustee, regardless of where the property sits. This is one of the strongest arguments for a trust in Maryland — the multi-state benefit goes beyond what any other planning tool can offer.
Estate Planning Readiness Checklist for Maryland
Estate Planning Readiness Checklist — Maryland
Check each item you feel confident about. Your progress is saved automatically.
Most families begin exactly where you are. Here are the best next steps:
- What Is a Living Trust? — the complete beginner's guide
- Having the Estate Planning Talk — how to start the conversation
- How to Avoid Probate — why this matters
You have a solid foundation. Fill in the remaining gaps:
- Funding Your Trust — how to retitle assets
- The 5 Documents Every Family Needs
- Estate Tax & Gift Tax Guide
You understand the fundamentals and you're prepared to work with a professional. The next step is finding an estate planning attorney who knows Maryland law.
Common Estate Planning Mistakes in Maryland
Maryland is the only state in the nation that imposes both an estate tax (on estates over ~$5 million) and an inheritance tax (10% on non-lineal heirs). This double layer of taxation requires careful planning that most states simply don’t need.
Maryland has its own estate tax with an exemption of just $5 million — well below the federal $13.61 million threshold. Families with estates above that amount may owe state estate tax even if they owe nothing federally.
Unlike estate tax (paid by the estate), Maryland’s inheritance tax is paid by each individual heir — and the rate depends on their relationship to the deceased. Non-spouse heirs can face significant tax bills.
A trust only avoids probate for assets that have been retitled into it. An unfunded trust is just an expensive stack of paper. Real estate, bank accounts, and investments all need to be moved into the trust’s name.
A will does not avoid probate — it goes through it. A will tells the probate court what you want, but the court still controls the process. Only a trust, joint ownership, beneficiary designations, and certain deeds bypass probate entirely.
The best way to avoid these mistakes? Work with an estate planning attorney who knows Maryland law. A qualified attorney will catch the state-specific issues that generic online advice misses.
Other Important Planning Tools in Maryland
Advance Directive
Maryland uses a combined Advance Directive form published by the Attorney General’s Office under the Maryland Health Care Decisions Act (Health-General, Title 5, Subtitle 6). The form has two parts: Part I appoints a health care agent to make medical decisions when you’re incapacitated, and Part II states your end-of-life treatment preferences for three conditions: terminal illness, persistent vegetative state, and end-stage condition. The advance directive must be signed and witnessed by two witnesses (or notarized). Maryland also uses MOLST (Medical Orders for Life-Sustaining Treatment) — a physician-signed medical order distinct from an advance directive.
Learn more about healthcare directives →
Power of Attorney
Maryland’s power of attorney rules are governed by Estates & Trusts, Title 17 (Maryland General and Limited Power of Attorney Act). The document must be signed by the principal, acknowledged before a notary, and witnessed by two adult witnesses. Important: A Maryland POA is durable by default — it remains effective during incapacity unless it specifically says otherwise. Maryland provides statutory forms for both general (§ 17-202) and limited (§ 17-203) powers of attorney.
Learn more about powers of attorney →
Long-Term Care Considerations
Maryland Medicaid covers long-term nursing home care, but eligibility requires meeting strict asset and income limits. The Medicaid look-back period is 5 years. Maryland’s limited homestead exemption (approximately $25,000-$28,000 in bankruptcy) provides minimal protection compared to states like Florida or Texas — making other planning tools (trusts, tenancy by the entirety, insurance) more important for asset protection. Tenancy by the entirety property in Maryland cannot be seized by creditors of only one spouse, providing an important form of married-couple protection.
Learn more about long-term care planning →
Find a Maryland Estate Planning Attorney
Find a Maryland Estate Planning Attorney
Maryland’s dual estate tax and inheritance tax system, Orphans’ Court procedures, expanded augmented elective share, and multi-jurisdictional issues with DC and Virginia make professional guidance essential. A qualified Maryland estate planning attorney understands how these pieces fit together — and how to minimize the combined tax burden.
Use the directories below to find a qualified estate planning attorney in your area, or email us and we’ll point you in the right direction.
Where are you in this journey?
- My parents are getting older — just starting to think about this
- We need a plan now — ready to take action
- Settling an estate — dealing with a parent’s passing
Maryland attorney directories:
- Maryland State Bar Association
- Bar Association of Baltimore City — Lawyer Referral
- Bar Association of Montgomery County — Lawyer Referral (301-279-9100)
- American College of Trust and Estate Counsel (ACTEC) — Find a Fellow
- National Academy of Elder Law Attorneys (NAELA)
Questions to Ask Before You Hire a Maryland Estate Planning Attorney
- How many estate plans do you create per year, and what percentage of your practice is estate planning?
- Do you specialize in estate planning, or is it one of many practice areas?
- What’s included in your flat fee (trust, pour-over will, POA, advance directive, trust funding)?
- How do you minimize the combined estate tax and inheritance tax burden for Maryland families?
- Do you handle multi-state planning for families with property in DC or Virginia?
- Will you help with funding the trust — retitling deeds, bank accounts, and investments?
- How do you address Maryland’s augmented elective share in your planning for blended families?
Recent Maryland Updates
- October 2025 — HB 625 (Transfer-on-Death Deeds): Maryland now allows TOD deeds for the first time. Property owners can name beneficiaries who receive the property automatically at death, bypassing probate. Must be recorded in county land records before death. Exempt from recordation and transfer taxes for primary and secondary residences.
- October 2023 — Registered Domestic Partners: Registered domestic partners are now fully exempt from the Maryland inheritance tax, receiving the same 0% rate as spouses.
- October 2020 — Augmented Elective Share: Maryland significantly expanded the definition of the augmented estate for spousal elective share purposes. The expanded definition captures virtually all assets — including trust assets, beneficiary designations, and joint property — making it much harder to disinherit a surviving spouse.
- 2025 Legislative Session — Governor Moore’s Proposals: The Governor proposed reducing the estate tax exemption from $5M to $2M and eliminating the inheritance tax entirely. Both proposals were rejected by the legislature. The status quo ($5M estate tax exemption and 10% inheritance tax) remains unchanged.
- 2026 Legislative Session — SB 211: A bill has been introduced to repeal the Maryland estate tax and conform the exclusion amount to the federal exemption ($15M). Status pending as of this writing.
- Federal — OBBBA (July 2025): The federal estate tax exemption is now permanently set at $15 million per individual ($30 million per married couple) starting 2026. The gap between federal ($15M) and Maryland ($5M) makes state-specific estate tax planning important for families in the $5M-$15M range.
Last reviewed: February 2026
Last updated: February 2026. I review Maryland’s estate planning rules quarterly and update this page whenever laws change. Bookmark it.
Go Deeper: Estate Planning Guides
| Guide | What You’ll Learn |
|---|---|
| Living Trusts: The Complete Guide | What a living trust is, how it works, and whether your family needs one — the foundation |
| How to Avoid Probate | Every method to keep your family out of court — trusts, TOD accounts, joint tenancy, and more |
| Having the Estate Planning Talk | How to start the hardest conversation your family will ever have — with scripts and strategies |
| Estate Tax Planning | Federal and state estate taxes, gift tax exclusions, and the step-up in basis explained |
| How to Fund Your Trust | The step everyone forgets — how to actually move your assets into your trust |
| The 5 Documents Every Family Needs | Trust, will, powers of attorney, healthcare directive — the complete package |
| Protecting Your Parents’ Legacy | Long-term care, Medicaid, blended families, and the threats nobody warns you about |
| Compare State Estate Planning Rules | See how your state compares on probate costs, estate taxes, and trust-friendly features |