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 Maine-specific rules.
Already know the basics? Keep scrolling — everything below is specific to Maine.
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, and Maine has some important rules you need to know about — especially around the state estate tax.
Here’s the headline: Maine is one of only 12 states (plus DC) that imposes its own state estate tax. The exemption is approximately $7 million in 2025, which sounds high — but it’s decoupled from the federal exemption, which jumped to $15 million per person in 2026. That gap matters. If your family’s estate falls between $7 million and $15 million, you’ll owe Maine estate tax but zero federal estate tax. And Maine offers no portability between spouses — meaning without a credit shelter trust, a married couple effectively wastes one spouse’s exemption.
Whether you’re a lifelong Mainer planning your family’s future, or a nonresident who owns a vacation home on the coast or a camp up north — here’s everything you need to know about estate planning in Maine. No legal jargon, just clear answers from a son who’s been through it.
Maine’s Estate Tax: The Growing Gap
The federal-state gap is real. The federal estate tax exemption is now $15 million per person (made permanent by the One Big Beautiful Bill Act, July 2025). Maine’s exemption is approximately $7 million. Estates between $7M and $15M owe Maine estate tax — even though they owe nothing to the IRS. Without planning, a married couple loses one spouse’s $7M exemption entirely because Maine has no portability.
Maine’s estate tax is governed by Title 36, Sections 4102-4103. The base exemption is $5,600,000 (set in 2018), adjusted annually for inflation. For 2026, the inflation-adjusted exemption is approximately $7,000,000.
Maine Estate Tax Rates
| Taxable Estate Above Exemption | Rate | Tax Owed |
|---|---|---|
| First $3,000,000 over exemption | 8% | Up to $240,000 |
| Next $3,000,000 | 10% | $240,000 + 10% of excess |
| Over $6,000,000 above exemption | 12% | $540,000 + 12% of excess |
Important — no cliff effect. Unlike New York’s estate tax, Maine uses a true exclusion. Only the amount above the exemption is taxed at graduated rates. Going $1 over the exemption doesn’t trigger tax on the entire estate — just on that $1.
No Portability — Why Credit Shelter Trusts Matter
The federal estate tax allows “portability” — when one spouse dies, their unused exemption transfers to the surviving spouse. Maine does not offer portability. Each spouse gets their own ~$7M exemption, and if the first spouse to die leaves everything outright to the surviving spouse (which most couples do by default), that first spouse’s exemption disappears entirely.
The fix is a credit shelter trust (also called a bypass trust or AB trust). When the first spouse dies, assets up to the exemption amount fund an irrevocable trust for the surviving spouse’s benefit. The surviving spouse can receive income and even principal distributions — but the trust assets are not counted in the surviving spouse’s taxable estate at death. Result: the couple shelters up to ~$14 million instead of ~$7 million.
For a couple with a $12 million combined estate, this is the difference between paying $0 in Maine estate tax (with a credit shelter trust) and approximately $400,000 (without one).
Two Trust Types in Maine
Under the Maine Uniform Trust Code (Title 18-B), a trust is presumed revocable unless the terms expressly state it is irrevocable (Section 602).
Revocable Living Trust
- Avoids probate — the primary benefit for Maine families, especially those with real estate in multiple states
- You maintain full control — revocable and amendable during your lifetime
- Provides privacy — trust assets stay out of public probate court records
- Provides incapacity protection — successor trustee steps in without court guardianship
- Avoids ancillary probate — critical if you own property in NH, MA, or other states
- Does not reduce Maine estate tax by itself — assets in a revocable trust are still part of your taxable estate
- TOD deeds are also available in Maine, but a trust covers all asset types and provides incapacity protection
Irrevocable Trust
- Once established, you give up control — the trade-off for estate tax savings and asset protection
- Credit shelter trust — essential for married couples to preserve both spouses’ Maine estate tax exemptions
- Dynasty trust — Maine abolished the Rule Against Perpetuities for trusts (Title 33, Section 114), so trusts can last indefinitely
- Irrevocable life insurance trust (ILIT) — removes life insurance proceeds from your taxable estate
- Medicaid protection — irrevocable trusts funded 5+ years before application can protect assets from the MaineCare look-back
- Maine does not have a DAPT statute — you cannot create a self-settled asset protection trust under Maine law
Maine Rules at a Glance
Probate Rules
- Court system: County Probate Courts (16 counties, each with elected Register of Probate)
- Uniform Probate Code: Adopted — Title 18-C (effective July 1, 2019)
- Informal probate: Available for uncontested matters — handled by Register without court hearing
- Small estate affidavit: Estates ≤$40,000 statutory base (~$63,800 inflation-adjusted); personal property only; 30-day waiting period
- Creditor claims period: 4 months after publication of notice (9-month outer limit from death)
- Inventory: Due within 3 months of appointment
- Typical timeline: 9-18 months; complex or contested estates longer
- Filing fees: $20 (will filing); appointment certificates $10 each
- Attorney fees: No statutory schedule — reasonable compensation; typically 2-5% of estate value
Tax Rules & Property
- State estate tax: Yes — ~$7M exemption (2026), 8-12% graduated rates
- No state inheritance tax
- State income tax: 5.8% top rate (trusts taxed at individual rates)
- No portability of estate tax exemption between spouses
- Real estate transfer tax: $2.20 per $500 of value; additional $3.80 per $500 on transfers over $1,000,000 (effective Nov 2025)
- Common law (separate property) state
- TOD deeds: Available under Title 18-C, Article 6 (Sections 6-405 through 6-417)
- No Lady Bird deeds
- No tenancy by the entirety — treated as joint tenancy (Title 33, Section 159)
- Homestead exemption: $47,500 ($95,000 if minor dependents in residence or debtor age 60+/disabled)
Nonresidents: If You Own Property in Maine
Vacation home owners, take note. If you own real or tangible personal property in Maine — a coastal cottage, a lakeside camp, timberland — you are subject to Maine estate tax on that property, even if you live in a state with no estate tax. Maine also requires a Form 706ME filing for nonresident estates with Maine-sited property.
Maine is one of America’s top vacation destinations, and thousands of nonresidents own property here. Estate planning for that property involves several layers:
- Maine estate tax exposure: Nonresidents owe Maine estate tax on real and tangible personal property located in Maine. The tax is prorated based on the ratio of Maine property to the total federal gross estate. Even if your estate is under $7M total, the filing requirement still applies if you have Maine property.
- Ancillary probate: If your Maine property isn’t held in a trust, joint tenancy, or TOD deed, your family will face probate in Maine in addition to probate in your home state. Maine’s county Probate Courts handle ancillary proceedings.
- TOD deed: Maine’s Transfer on Death deed (Title 18-C, Sections 6-405 through 6-417) is a straightforward way to transfer a vacation property outside probate. Must be recorded before death; can be revoked by recording a revocation or a new TOD deed. Cannot be revoked by will.
- Revocable trust: Holding Maine property in a revocable living trust avoids ancillary probate entirely and provides incapacity protection. This is the most comprehensive solution for nonresidents with significant Maine real estate.
- Real estate transfer tax: When property eventually transfers (including through estate settlement), Maine’s transfer tax applies — $2.20 per $500, plus an additional $3.80 per $500 for properties valued over $1 million (effective November 2025). On a $2M coastal property, that’s $7,600 in transfer tax. Planning can minimize or defer this cost.
If you live in New Hampshire (no estate tax) or another tax-friendly state but own property in Maine, a trust or TOD deed is essential — otherwise, your family deals with Maine probate, Maine estate tax exposure, and Maine transfer tax with no advance planning.
Dynasty Trusts: Maine Abolished the Rule Against Perpetuities
Effective July 1, 2019, Maine abolished the Rule Against Perpetuities for trusts that opt out. Under Title 33, Section 114, if a trust instrument provides that the RAP does not apply and the trustee has the power to sell, mortgage, or lease trust property, the trust can last indefinitely.
This puts Maine alongside states like South Dakota, Nevada, and Alaska as a jurisdiction where multi-generational dynasty trusts are possible. Combined with Maine’s modern trust infrastructure — directed trusts, decanting, trust protectors — families can create sophisticated long-term wealth preservation structures without moving trust situs out of state.
Maine also adopted the Uniform Trust Decanting Act (Title 18-B, Chapter 12), allowing authorized fiduciaries to modify irrevocable trust terms by distributing assets into a new trust. And the Maine Uniform Directed Trust Act (Title 18-B, Chapter 21, effective January 2020) enables trust directors — giving families investment or distribution control while a professional trustee handles administration.
Official Sources
Title 18-C — Maine Probate Code · Title 18-B — Maine Uniform Trust Code · Title 36, §4102 — Estate Tax Definitions · Title 36, §4103 — Estate Tax Rates · Title 33, §114 — RAP Exemption · Maine Revenue Services — Estate Tax · Maine Probate Court Records · Maine State Bar Association
What Estate Planning Costs in Maine
| What You’re Paying For | Typical Range in Maine | When You’d Use It |
|---|---|---|
| Simple will (individual) | $300 – $1,000 | Single person, straightforward assets |
| Revocable living trust (individual) | $1,500 – $3,000 | Individual wanting to avoid probate and plan for incapacity |
| Full estate plan (married couple — trust + will + POA + advance directive) | $3,000 – $7,000 | Most families — this is what you actually need |
| Estate tax planning (credit shelter trust, ILIT, dynasty trust) | $5,000 – $12,000+ | Families near or above the $7M exemption — essential for married couples |
| Trust administration after death | 1-3% of trust assets or hourly billing | Settling a trust estate after a parent’s death |
Want to understand exactly what you’ll pay? Many Maine estate planning attorneys offer free or reduced-cost initial consultations. The Maine State Bar Association runs a Lawyer Referral Service that can connect you with trust and estate specialists. Find Maine estate planning attorneys below.
With a Trust vs. Without (Probate) in Maine
| Factor | With a Living Trust | Without (Probate) | Why It Matters |
|---|---|---|---|
| Timeline | Weeks to a few months | 9-18 months typical; contested estates longer | Your family waits months for assets to transfer |
| Cost | $1,500-$7,000 (one-time trust creation) | 2-5% of estate value in attorney/court costs | On a $500K estate, probate can cost $10,000-$25,000 |
| Privacy | Completely private | Public record — filed with county Probate Court | Anyone can see what your parents owned and who receives it |
| Court involvement | None | Required — county Probate Court (16 counties) | Even informal probate requires a filing with the Register |
| Real estate | Property in trust passes immediately | Goes through probate (TOD deed is an alternative) | TOD deeds handle one property; trusts handle everything |
| Multi-state property | No ancillary probate needed | Separate probate in each state | Families with property in ME + NH, MA, or FL face ancillary probate without a trust |
| Incapacity protection | Successor trustee steps in seamlessly | Court-supervised guardianship/conservatorship needed | Guardianship is public, expensive, and emotionally difficult |
| Estate tax impact | Revocable trust: no tax reduction; credit shelter trust: preserves both exemptions | First spouse’s exemption lost if assets pass outright to survivor | For couples near the $7M threshold, this can save hundreds of thousands in Maine estate tax |
Estate Planning Readiness Checklist for Maine
Estate Planning Readiness Checklist — Maine
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 Maine law.
Common Estate Planning Mistakes in Maine
Maine has its own estate tax with an exemption of just $6.8 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.
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.
Retirement accounts (401k, IRA) and life insurance pass by beneficiary designation — not by your will or trust. Outdated designations (like a former spouse) override everything else in your estate plan.
A trust handles what happens after death, but a durable power of attorney and healthcare directive handle what happens if you become incapacitated. Without these, your family may need an expensive court-supervised guardianship.
The best way to avoid these mistakes? Work with an estate planning attorney who knows Maine law. A qualified attorney will catch the state-specific issues that generic online advice misses.
Other Important Planning Tools in Maine
Advance Health-Care Directive (Title 18-C, Section 5-803)
Maine uses a combined Advance Health-Care Directive with two parts: Part 1 designates a healthcare agent (power of attorney for health care), and Part 2 provides individual instructions about end-of-life treatment preferences (the living will portion). A statutory form is available from the Maine Attorney General’s office.
Execution requirements: Must be signed and dated by the principal. Requires two witnesses. Notarization is not required to be legally valid in Maine, but is recommended for individuals who travel or spend part of the year in other states. The designated healthcare agent cannot serve as a witness.
Maine has a POLST (Physician Orders for Life-Sustaining Treatment) program administered by the Maine Hospice Council. POLST is a medical order for people with serious advanced illness — it is not a replacement for an advance directive.
Learn more about healthcare directives →
Durable Power of Attorney (Title 18-C, Article 5, Part 9)
Maine adopted the Uniform Power of Attorney Act. Powers of attorney are durable by default (Section 5-904) — they remain effective even after the principal becomes incapacitated unless the document expressly states otherwise. A statutory form is available. Springing POAs are allowed — the document can take effect only upon a specified event such as a physician’s determination of incapacity.
Maine also enacted the Uniform Fiduciary Access to Digital Assets Act (Title 18-C, Article 10), giving agents under a POA authority over the principal’s digital assets and electronic communications.
Learn more about powers of attorney →
Long-Term Care Considerations
MaineCare (Maine’s Medicaid program) covers long-term nursing home care. Eligibility requires meeting strict asset limits ($10,000 for an individual). The look-back period is 60 months (5 years). The Community Spouse Resource Allowance (CSRA) protects up to $162,660 for the non-applicant spouse.
Good news for Maine families: Maine uses probate-estate-only estate recovery. Unlike states that use expanded recovery (reaching into trusts, joint accounts, and life estates), Maine’s estate recovery program is limited to assets passing through probate. This means a revocable living trust provides meaningful protection against MaineCare estate recovery in Maine — one of the few states where this is true. However, irrevocable trusts funded more than 5 years before application remain the gold standard for Medicaid asset protection.
Learn more about long-term care planning →
Find a Maine Estate Planning Attorney
Find a Maine Estate Planning Attorney
Maine’s estate tax, no-portability rules, and vacation property considerations make professional guidance essential. An attorney who understands Maine-specific tax planning can save your family hundreds of thousands of dollars — especially if you’re a married couple near the exemption threshold.
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
Maine attorney directories:
- Maine State Bar Association
- Maine Bar Lawyer Referral Service
- Legal Services for Maine Elders — Free legal help for Mainers age 60+
- 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 Maine Estate Planning Attorney
- How many estate plans do you create per year, and what percentage of your practice is trust and estate work?
- My family’s estate may be close to the Maine exemption — do we need a credit shelter trust, and how would it work?
- We own property in Maine and another state — how do we avoid ancillary probate?
- Should we use a TOD deed for our Maine property, or is a trust the better option?
- What’s included in your flat fee (trust, pour-over will, POA, advance directive, deed transfers)?
- Will you help with funding the trust — retitling real estate deeds, bank accounts, and investments?
- How does Maine’s estate recovery program interact with our trust plan for MaineCare purposes?
Recent Maine Updates
- Federal — One Big Beautiful Bill Act (July 2025): Made the $15 million per-person federal estate tax exemption permanent (indexed for inflation starting 2027). Maine’s state exemption remains at ~$7M — creating a widening gap. Estates between $7M and $15M now owe Maine estate tax with zero federal liability.
- November 2025 — Real Estate Transfer Tax Surcharge: An additional $3.80 per $500 now applies to real estate transfers exceeding $1,000,000 in value (Title 36, Section 4641-A). On a $2M property, the total transfer tax is $7,600 (split between buyer and seller). This affects high-value coastal and lakefront properties and impacts estate settlement planning.
- 2025 — LD 1617 (Estate Tax Reduction) FAILED: A bill to lower Maine’s estate tax exemption to $1 million (with a $3.8M carve-out for family farms and aquaculture businesses) was reported “Ought Not to Pass” by the Committee on Taxation on May 27, 2025. Maine’s exemption remains at the inflation-adjusted ~$7M level.
- July 2019 — Probate Code Modernization: Title 18-C replaced Title 18-A, modernizing Maine’s entire probate code under the Uniform Probate Code framework. This brought informal probate, streamlined small estate procedures, and TOD deeds to Maine.
- July 2019 — Rule Against Perpetuities Abolished: Title 33, Section 114 allows trusts to opt out of the RAP, enabling perpetual dynasty trusts in Maine.
Last reviewed: February 2026
Last updated: February 2026. I review Maine’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 |