What does estate planning cover in Maryland?

Generally a will (Est. & Trusts § 4-102), often a revocable trust (Est. & Trusts § 14.5-401), a power of attorney whose agent acts with care, competence and diligence for the principal (Est. & Trusts § 17-113), and an advance directive about health care (Health-Gen. § 5-602) — each with its own formalities. Which documents a family needs is a question for a licensed Maryland attorney of your choosing.

Does Maryland have an estate tax and an inheritance tax?

Both. The estate tax's exclusion is $5,000,000 for a death on or after January 1, 2019, plus any deceased spousal unused exclusion (Tax-Gen. § 7-309(b)(3)); the inheritance tax is 10 percent of the clear value of property passing to a recipient outside the exempt classes (Tax-Gen. §§ 7-203, 7-204), paid before distribution by the person who distributes it (Tax-Gen. § 7-216).

Can a Maryland will leave property to a living trust?

Yes — a legacy to the trustee of a written trust signed before or together with the will and identified in it is valid, even if the trust may later be amended or revoked (Est. & Trusts § 4-411).

Maryland Estate Planning: Wills, Trusts, Probate, Protection

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The building blocks of a Maryland estate plan

A Maryland will

A will directs who receives your property and names a personal representative, but it generally must pass through Maryland probate to take effect. It can also name guardians for minor children.

A revocable living Trust

A revocable living Trust holds your assets during life and passes them to your beneficiaries at death — generally outside probate — while you keep full control and can change it anytime. It is an administration and probate-avoidance tool, not asset protection.

Probate

Probate is the process that settles a decedent's estate — admitting the will, paying creditors, and distributing what remains. In Maryland the register of wills or the orphans' court appoints the personal representative, who files the inventory within three months (Est. & Trusts § 7-201) and gives creditors notice under Est. & Trusts § 8-103's periods; a small estate has a simpler procedure (Est. & Trusts § 5-601), and many plans aim to reduce or avoid probate.

Asset protection

Maryland protects some property by statute — retirement plans, life insurance for the family and entireties property in a trust (Cts. & Jud. Proc. § 11-504; Ins. § 16-111; Est. & Trusts § 14.5-511) — but each depends on facts, timing and titling, and a revocable Trust does not by itself shield assets from creditors (Est. & Trusts § 14.5-508(a)). This is an area to review with a Maryland attorney.

Powers of attorney & advance directives

A complete plan usually also includes a power of attorney for finances and an advance directive for health care (Est. & Trusts § 17-113; Health-Gen. § 5-602) — so someone you trust can act for you if you cannot, rather than a guardian a court appoints.

Which plan is right in Maryland?

There is no single best plan for everyone — the right mix of will, Trust, and directives depends on your assets, your family, and your goals. This page is general information, not legal advice. A free role check can show you where you stand, and a Maryland attorney can recommend what fits your situation.

General information about Maryland law, not legal advice.

Frequently asked questions

What does estate planning cover in Maryland?: Generally a will (Est. & Trusts § 4-102), often a revocable trust (Est. & Trusts § 14.5-401), a power of attorney whose agent acts with care, competence and diligence for the principal (Est. & Trusts § 17-113), and an advance directive about health care (Health-Gen. § 5-602) — each with its own formalities. Which documents a family needs is a question for a licensed Maryland attorney of your choosing.
Does Maryland have an estate tax and an inheritance tax?: Both. The estate tax's exclusion is $5,000,000 for a death on or after January 1, 2019, plus any deceased spousal unused exclusion (Tax-Gen. § 7-309(b)(3)); the inheritance tax is 10 percent of the clear value of property passing to a recipient outside the exempt classes (Tax-Gen. §§ 7-203, 7-204), paid before distribution by the person who distributes it (Tax-Gen. § 7-216).
Can a Maryland will leave property to a living trust?: Yes — a legacy to the trustee of a written trust signed before or together with the will and identified in it is valid, even if the trust may later be amended or revoked (Est. & Trusts § 4-411).