Where the estate is opened.
See the tax section for the exemption or the repeal.
Living trust or probate
A revocable living trust holds assets you title in the trustee's name. You can serve as trustee while you are able.
At death, the successor trustee handles those assets. Property you leave in your own name can still go through the probate court. A pour-over will sends leftover assets into the trust, and those leftover assets may pass through probate first.
The probate path
In Maryland, the estate is opened in The court under the Estates and Trusts Article.
The Estates and Trusts Article provides for administration of a decedent's property in Maryland. If property subject to administration in Maryland is $50,000 or less as of death, the estate may be administered as a small estate under sections 5-602 through 5-607. If the surviving spouse is the sole legatee or heir, that small-estate value is $100,000 or less. A petition for administration of a small estate is filed by a person entitled to administration.
Source: Md. Code, Estates and Trusts sec. 5-601
Fees
In Maryland, probate compensation is a statutory maximum.
Section 7-601 says a personal representative or special administrator is entitled to reasonable compensation for services. Unless the will provides a larger measure, the court may allow commissions it considers appropriate, but they may not exceed 9% if the property subject to administration is not over $20,000, or $1,800 plus 3.6% of the excess over $20,000 if it is over $20,000. Real estate broker commissions are an administration expense and are not deducted from the personal representative's commissions.
Source: Md. Code, Estates and Trusts sec. 7-601
Small estate
Maryland has a small-estate procedure. The statute states who can use it.
The general cap is $50,000 of property subject to administration in Maryland, valued at fair market value less debts of record secured by the property as of death, to the extent insurance is not payable to the lienholder. If the surviving spouse is the sole legatee or heir, the cap is $100,000. There is no affidavit limit on the official page.
Source: Md. Code, Estates and Trusts sec. 5-601
Estate or inheritance tax
Maryland levies an estate tax and an inheritance tax.
Tax-General section 7-204 sets the inheritance tax rate at 10% of the clear value of property that passes from a decedent. Clear value means fair market value minus expenses. Section 7-203 exempts property passing to a grandparent, parent, spouse, child or lineal descendant of a child, spouse of a child or of a lineal descendant, surviving spouse of a deceased child or deceased lineal descendant, brother or sister, and certain family entities, plus other listed exemptions including the first $1,000 to any one person and property from an estate that qualifies as a small estate. The Comptroller tax tip states that the amount that can be excluded for Maryland estate tax for decedents dying on or after January 1, 2019 is $5.0 million.
Source: Md. Code, Tax-General sec. 7-204
Questions
The answers use the same statute and court pages as the sections above.
Does a living trust avoid probate in Maryland?
A revocable living trust holds the assets you title in the trustee's name. The successor trustee handles those assets. Property still titled in your own name can be a probate matter. A pour-over will can send leftover assets into the trust, and those leftover assets may still pass through probate first.
What is the small-estate procedure in Maryland?
The general cap is $50,000 of property subject to administration in Maryland, valued at fair market value less debts of record secured by the property as of death, to the extent insurance is not payable to the lienholder. If the surviving spouse is the sole legatee or heir, the cap is $100,000. There is no affidavit limit on the official page.
How are probate fees set in Maryland?
Section 7-601 says a personal representative or special administrator is entitled to reasonable compensation for services. Unless the will provides a larger measure, the court may allow commissions it considers appropriate, but they may not exceed 9% if the property subject to administration is not over $20,000, or $1,800 plus 3.6% of the excess over $20,000 if it is over $20,000. Real estate broker commissions are an administration expense and are not deducted from the personal representative's commissions.
Does Maryland tax an estate or an inheritance?
Tax-General section 7-204 sets the inheritance tax rate at 10% of the clear value of property that passes from a decedent. Clear value means fair market value minus expenses. Section 7-203 exempts property passing to a grandparent, parent, spouse, child or lineal descendant of a child, spouse of a child or of a lineal descendant, surviving spouse of a deceased child or deceased lineal descendant, brother or sister, and certain family entities, plus other listed exemptions including the first $1,000 to any one person and property from an estate that qualifies as a small estate. The Comptroller tax tip states that the amount that can be excluded for Maryland estate tax for decedents dying on or after January 1, 2019 is $5.0 million.
Sources
These are the statute and court pages used above.