Maryland trusts and estates law sits in the Estates and Trusts Article of the Maryland Code and governs who inherits your property, how a will or trust must be created, what taxes apply at death, and how the probate courts move assets from a deceased person to the people entitled to them. Maryland is one of a small number of states that imposes both an estate tax and an inheritance tax, which makes planning here different from planning in most of the country.
What Happens If You Die Without a Will
When there is no valid will, Maryland’s intestacy rules decide who inherits. The surviving spouse or registered domestic partner is first in line, but the size of that share depends on who else survives.1Maryland General Assembly. Maryland Code Estates and Trusts 3-102 – Share of Surviving Spouse or Registered Domestic Partner
- If the decedent leaves a surviving minor child, the spouse takes one-half of the intestate estate.
- If there are surviving adult children who are not also children of the spouse, the spouse takes the first $100,000 plus one-half of the balance, and the adult children divide the rest.
- If there are no surviving children or other descendants, the spouse inherits everything, even when the decedent’s parents are still living.
That last rule surprises people. Parents inherit only when there is no surviving spouse, registered domestic partner, or descendant.2Maryland General Assembly. Maryland Code Estates and Trusts 3-104
When property passes to descendants, Maryland uses representation, sometimes called per stirpes. If a child predeceased the decedent but left children of their own, those grandchildren step into their parent’s spot and divide that share.3Maryland General Assembly. Maryland Code Estates and Trusts 1-210 – Representation per Stirpes
Making a Valid Will
Anyone at least 18 years old and legally competent can make a will in Maryland.4Maryland General Assembly. Maryland Code Estates and Trusts 4-102 – Who May Make a Will The document must be in writing, signed by the testator, and signed by at least two credible witnesses who watch the testator sign.5Justia. Maryland Code Estates and Trusts 4-102 – Requirements for Will
Maryland does not recognize holographic wills, meaning handwritten and unwitnessed wills, unless they were validly executed in a state that permits them. A will scrawled on paper without witnesses has no legal effect if it was created in Maryland, no matter how clearly it states the person’s wishes.
Parents with children under 18 can use the will to appoint a testamentary guardian. A surviving parent can name one or more guardians and successor guardians, and the appointment takes effect without separate court approval unless an existing court order prohibits it. Without that appointment, the Orphans’ Court will choose someone if both parents die, and the choice may not match what the parents would have wanted.
Can a Spouse Be Cut Out of a Will
Not entirely. Maryland gives a surviving spouse the right to reject what a will provides and claim a statutory minimum share instead. If descendants survive the decedent, the elective share is one-third of the estate. With no surviving descendants, it rises to one-half.6Maryland General Assembly. Maryland Code Estates and Trusts 3-403
The share is reduced by any spousal benefits the surviving spouse already receives from the estate, such as property passing by joint ownership or beneficiary designation, so nothing is double-counted. A spouse who wants to take the elective share must file for it; it does not apply on its own.
Trusts Recognized in Maryland
The Maryland Trust Act sits in Title 14.5 of the Estates and Trusts Article. To create a valid trust, the settlor must have capacity and intent, there must be a beneficiary who can be identified now or later, and the trustee must have actual duties.7New York Codes, Rules and Regulations. Maryland Code Estates and Trusts 14.5-402 – Intent and Capacity of Settlor to Create a Trust
A revocable living trust lets the settlor keep control during life and names a successor trustee to take over at death. It can be changed or revoked at any time while the settlor is competent, and property held in it passes to beneficiaries without probate. That last feature is the main reason people set them up.
An irrevocable trust generally cannot be changed once established. The tradeoff is that assets moved into it are usually removed from the settlor’s taxable estate. A testamentary trust is a third form: it is created by the will and only comes into existence after the testator dies and the will is probated.
Maryland also recognizes special needs and supplemental needs trusts, which let a beneficiary receive distributions without losing eligibility for means-tested public benefits like Medical Assistance. They can be funded by the beneficiary or by a third party, and there is no financial cap on contributions to an individual account in a pooled special needs trust. The trustee can pay for food, shelter, utilities, transportation, and other expenses at their discretion, and no court order is required to fund the trust or make distributions.8Maryland General Assembly. Maryland Code Estates and Trusts 14.5-1002 – Special Needs Trust or Supplemental Needs Trust
What Assets Skip Probate
A will does not control everything you own. Many of the most valuable assets a person holds pass automatically by contract or by operation of law, bypassing both the will and the court process. These include:
- Life insurance policies with a named beneficiary
- Retirement accounts (IRAs, 401(k)s, 403(b)s) with a named beneficiary
- Payable-on-death bank accounts
- Transfer-on-death brokerage accounts
- Jointly held property with a right of survivorship
- Property held in a revocable trust
This is where estate plans most often go wrong. A will can say everything goes to your children, but if a retirement account still lists an ex-spouse as beneficiary, the ex-spouse gets that account. Beneficiary designations override wills, and reviewing them after any major life change matters at least as much as updating the will itself.
Starting October 1, 2026, Maryland also recognizes transfer-on-death deeds for real property. That lets an owner name a beneficiary who automatically receives the property at death without probate, similar to a payable-on-death designation on a bank account.9BillTrack50. MD SB651 – Transfer-on-Death Deeds Before that date, Maryland real estate had to go through probate or be held in a trust to avoid the court process.
Powers of Attorney and Advance Directives
Estate planning covers decisions made while you are still alive but unable to act. Two documents handle that.
A financial power of attorney designates someone to manage your money, property, and legal affairs if you become incapacitated. Maryland’s statutory form requires two witnesses and notarization.10Maryland General Assembly. Maryland Code Estates and Trusts 17-203 Unless the document says otherwise, it takes effect as soon as it is signed. A springing power of attorney, which activates only upon incapacity, is possible, but the document must expressly include that condition.
An advance directive lets you state your wishes for medical treatment and name a healthcare agent to make decisions when you cannot. Maryland requires two witnesses and does not require notarization.11Maryland General Assembly. Maryland Code Health – General 5-602 Your healthcare agent cannot serve as one of the witnesses, and at least one witness must be someone who does not stand to gain financially from your death.12Maryland Department of Health. Maryland Advance Directive – Planning for Future Health Care Decisions The directive stays in effect until you revoke it.
Maryland Estate Tax and Inheritance Tax
Maryland imposes both an estate tax and an inheritance tax on the same transfer of wealth. They are separate obligations that apply to different people and are triggered by different facts.13Comptroller of Maryland. Estate-Inheritance-Fiduciary Tax FAQs
Estate Tax
The Maryland estate tax applies to estates with a gross value over $5 million. That threshold has been in place since 2019 and is not indexed for inflation.14Maryland General Assembly. Maryland Code Tax – General 7-309 Married couples can effectively shelter up to $10 million by using portability of the exemption between spouses. The tax is calculated on the total value of what the decedent owned at death and paid by the estate before distribution.
Inheritance Tax
The inheritance tax works the other way around. It targets the person receiving the property, not the estate. Close family members are fully exempt, including spouses, parents, stepparents, children, stepchildren, grandchildren, siblings, and the spouses of children or grandchildren.15Maryland General Assembly. Maryland Code Tax – General 7-203 – Exemptions
Everyone else pays a flat 10% on the value of the inheritance. That covers friends, unmarried partners, nieces, nephews, and cousins.16Register of Wills. Inheritance Tax If you plan to leave a significant gift to someone outside the exempt group, the 10% is worth factoring into the size of the bequest.
When both taxes hit the same estate, inheritance tax payments reduce the estate tax owed. If the inheritance tax equals or exceeds the calculated estate tax credit, no additional estate tax is due.13Comptroller of Maryland. Estate-Inheritance-Fiduciary Tax FAQs
How Probate Works in Maryland
Probate is the court-supervised process that validates a will, appoints someone to manage the estate, and makes sure debts are paid before property is distributed. It runs through the Register of Wills in the county where the decedent lived, and the Orphans’ Court resolves disputes, approves accounts, and authorizes the personal representative’s commissions.17Maryland Courts. Frequently Asked Questions – Orphans’ Court Maryland offers three tiers.
Small Estate Administration
An estate qualifies as a small estate when the probate assets total $50,000 or less. If the surviving spouse is the sole heir or beneficiary, the ceiling rises to $100,000.18Register of Wills. Small Estates Small estates have fewer filings, no Register of Wills fee, and rarely need any court involvement. There is no publication requirement, which speeds things up further.
Modified Administration
Modified administration is a streamlined path for larger estates where the beneficiaries are all close family exempt from the inheritance tax. It removes the need for a formal inventory and periodic accounting. The personal representative files an election within three months of appointment, all residuary beneficiaries must consent, and the estate must be solvent. A single verified final report replaces the usual inventory and account. Distribution has to be complete within 12 months, and the estate should close within about 13 months.19Register of Wills. Administering Estates in Maryland
Regular Administration
Everything else goes through regular administration. It begins with a Petition for Administration and the original will, if there is one, filed with the Register of Wills in the county where the decedent lived. The court issues Letters of Administration, giving the personal representative authority to access bank accounts, manage real estate, and handle estate business.
The personal representative must publish a notice of appointment in a local newspaper to alert creditors. Creditors have either six months from the date of death, or two months after direct notice from the personal representative, whichever comes first, to file claims.20Maryland General Assembly. Maryland Code Estates and Trusts 8-103 – Limitation on Presentation of Claim
The information report and inventory are due within three months of appointment. The initial account is due within nine months, and later accounts every six months after that.21Register of Wills. Deadlines and Time Limitations for Filing A straightforward regular estate usually closes in 12 to 18 months. Contested estates or ones with complex assets take longer.
Fees and Personal Representative Commissions
Maryland charges a filing fee based on the value of the probate estate. Small estates pay nothing. Regular estates start at $100 for estates between $50,000 and $100,000 and scale up from there.22Register of Wills. Probate and Other Fees
The personal representative is entitled to reasonable compensation. Maryland caps commissions at 9% on the first $20,000 of assets subject to administration. Above $20,000, the maximum is $1,800 plus 3.6% of the excess. A will can authorize a higher amount, and the Orphans’ Court must approve the commissions upon petition.23Maryland General Assembly. Maryland Code Estates and Trusts 7-601