Maryland Inheritance Tax
Locate a Local Finance Lawyer
What Is Maryland's Inheritance Tax?
Maryland has a very forgiving inheritance tax policy. In general, close family members and charities are exempt, while everyone else is taxed at a rate of 10%.
Close family members will not need to pay an inheritance tax. Maryland defines close family members as:
parents and grandparents
children and grandchildren
spouses of children
adopted children and stepchildren
Are There Any Non-Familial Exemptions?
The non-familial exemptions are:
Any non-profits registered with the State of Maryland
Inheritance of less than $1,000
The proceeds of a life insurance policy
The deceased’s primary residence
The final exemption is where the estate is small. If the estate is worth less than $30,000, no inheritance tax is levied by Maryland.
Gifts Made Prior to Death
Gifts made 2 years prior to death are gifts made in contemplation of death. These gifts will be taxed.
Tax is 10 percent of the clear value of the estate, which is the gross value minus any expenses. The executor or administrator of the estate must file an inventory with the probate court to see what the deceased owned. The county register normally notifies the executor or administrator of the estate. If the executor or administrator do not pay, then the inheritors will be responsible. Taxes must be paid before distribution of the estate.
If the inheritors are indigent and cannot pay the inheritance taxes, then the inheritors may set up a payment plan with the State.
Consulting an Attorney
Consult a Lawyer - Present Your Case Now!
Last Modified: 06-22-2015 09:04 PM PDT
Link to this page