What Families Need to Know After a Death in Maryland

Maryland is one of only a handful of states with both an estate tax and an inheritance tax — making it one of the most tax-intensive states for estate settlement in the country. The estate tax applies to estates over $5 million; the inheritance tax applies to assets passing to non-close-family beneficiaries at a 10% rate. Combined with its Orphans' Court probate system and relatively accessible small estate process, Maryland requires more planning than most states.

Probate
Probate & Small Estate Rules in Maryland

Maryland probate is filed with the Register of Wills in the county where the deceased lived. The probate court in Maryland is called the Orphans' Court — one of the few states to use that name. Two exceptions: Montgomery and Harford counties have no separate Orphans' Court, so those cases are handled by the Circuit Court instead.

The executor in Maryland is called a personal representative. Once appointed by the Register of Wills, the personal representative receives Letters of Administration — the document that authorizes them to manage and distribute estate assets.

Small estate administration

Estates with a gross value under $50,000 — or under $100,000 when the sole heir is the surviving spouse or a child — can use Maryland's simplified small estate administration process under Md. Code, Estates & Trusts § 5-601. This process is filed directly with the Register of Wills and avoids full Orphans' Court proceedings.

Creditor claims and timeline

Creditors have 6 months from the date of death to file claims against the estate (or 2 months from direct notice to known creditors, whichever is later). This creditor period sets the floor for the overall timeline. Maryland estates typically take 9 to 15 months to close.

Personal representative compensation

Maryland sets statutory compensation for the personal representative: up to 9% of the first $20,000 of estate value, plus 3.6% of amounts above $20,000, under Md. Code, Estates & Trusts § 7-601. On a $500,000 estate, that works out to roughly $17,280 in personal representative compensation.

Wills
Will Signing Requirements in Maryland

A valid Maryland will requires the signature of the testator plus two adult witnesses who sign in the testator's presence, under Md. Code, Estates & Trusts § 4-102. Notarization is not required for the will itself to be valid — but attaching a self-proving affidavit (which does require a notary) simplifies probate by eliminating the need to locate witnesses after death.

Maryland does not recognize holographic wills. A handwritten will with no witnesses — valid in many other states — is not a valid will in Maryland. If you find a handwritten document that appears to be a will but has no witness signatures, consult the Register of Wills before drawing conclusions about the estate.

Maryland does recognize wills that were validly executed in another state or country. A will signed correctly under another jurisdiction's law is generally admissible to probate in Maryland even if it does not meet Maryland's own execution requirements.

If the deceased left no valid will, the estate passes under Maryland's intestate succession law at Md. Code, Estates & Trusts § 3-102. Under that statute, if there is a surviving spouse and children from the marriage, the spouse receives half and the children share the other half. If all children are also children of the surviving spouse, the spouse receives the first $40,000 plus half the remainder.

Advance Directive
Maryland Advance Directive

Maryland uses a single combined document called the Advance Medical Directive (AMD) that covers both the appointment of a healthcare agent and the person's treatment preferences. This replaces what other states sometimes call a living will and healthcare power of attorney separately.

To be valid, the Maryland AMD requires the person's signature plus two adult witnesses. Witnesses cannot be: the designated healthcare agent, or anyone who will inherit from the person under a will or intestacy. Unlike some states, Maryland does not offer notarization as an alternative to witnesses — both witnesses are always required.

Maryland also recognizes the MOLST form (Medical Orders for Life Sustaining Treatment) — a physician-signed medical order for patients with serious illness or frailty. A MOLST is not the same as an AMD: the MOLST is an active medical order that travels with the patient and governs immediate clinical decisions, while the AMD names an agent and states broader preferences. Both documents can exist for the same person.

When settling an estate: the healthcare agent's authority ends at death. From that point, the personal representative — not the healthcare agent — manages estate administration. If there is a conflict between family members about the deceased's medical wishes before death, the AMD controls; the named healthcare agent's decisions generally supersede family members who were not designated.

Estate & Inheritance Tax
Maryland Estate and Inheritance Taxes

This section is critical for Maryland families. Maryland is one of only two states in the United States — along with New Jersey — that imposes both a state estate tax and a state inheritance tax. Understanding both is essential before distributing any estate assets.

Maryland estate tax

The Maryland estate tax applies to estates with a gross value over $5,000,000. Rates range from 0.8% to 16% on the taxable portion of the estate above the exemption. The Maryland estate tax return (Form MET-1) must be filed with the Maryland Comptroller within 9 months of the date of death. An extension is available, but it does not extend the time to pay any tax owed.

One significant difference from federal estate tax: Maryland does not offer portability of the exemption between spouses. At the federal level, a surviving spouse can use the deceased spouse's unused exemption. In Maryland, that unused state exemption is lost if not planned for in advance. For this reason, estate attorneys in Maryland frequently recommend bypass trusts (credit shelter trusts) to preserve each spouse's exemption and minimize Maryland estate tax across both deaths.

Maryland inheritance tax

The Maryland inheritance tax is a 10% tax on assets passing to anyone outside the close-family exemption. Close family members who are exempt include: spouse, children, grandchildren, parents, grandparents, siblings, and stepchildren. Everyone else — including domestic partners, aunts, uncles, cousins, nieces, nephews, and friends — pays 10% on what they receive.

Unlike the estate tax, which is paid by the estate, the inheritance tax is paid by the person receiving the assets. Charitable organizations are exempt. The tax applies regardless of estate size — there is no minimum threshold for the inheritance tax.

For estates subject to both taxes, the Maryland estate tax calculation takes into account inheritance taxes paid — so there is some interaction between the two. An estate attorney familiar with Maryland tax law should review any estate over $1 million where non-close-family beneficiaries are involved.

Vehicle Transfer
Transferring a Vehicle After Death in Maryland

How a vehicle is transferred in Maryland after death depends on how title was held and whether the estate qualifies as a small estate.

For small estates (under $50,000, or under $100,000 for a surviving spouse or children), vehicles can be transferred to the surviving heir using the Maryland MVA's simplified process without opening full probate. The heir presents the death certificate and relevant documentation at any MVA branch.

For larger estates in probate, the personal representative transfers title using Letters of Administration at any MVA branch. The personal representative signs the title over to the new owner as part of estate distribution.

Jointly titled vehicles with survivorship rights transfer automatically to the surviving co-owner. The survivor presents a certified death certificate at the MVA — no probate or court involvement is required. The MVA will reissue title in the surviving owner's name alone.

Vehicles held in a living trust transfer to the successor trustee without court involvement. The successor trustee presents the trust document and death certificate to the MVA to retitle the vehicle as part of trust administration.

Medicaid Recovery
Medicaid Estate Recovery in Maryland

Maryland Medicaid — administered by the Maryland Department of Health (MDH) — has the right to seek reimbursement for long-term care costs paid on behalf of beneficiaries aged 55 and older. Personal representatives need to understand what is at risk before distributing estate assets.

Maryland limits recovery to the probate estate. Assets that pass outside of probate — through beneficiary designations, joint tenancy with right of survivorship, payable-on-death accounts, or a revocable living trust — are protected from Medicaid recovery in Maryland. This is a meaningful protection compared to states that pursue recovery against non-probate assets as well.

Recovery is waived while:

• A surviving spouse is living
• A minor child is living
• A blind or disabled child of any age is living

Once those protected parties are no longer present, MDH may pursue recovery from the estate. Personal representatives should contact MDH before distributing any estate assets if the deceased received Maryland Medicaid benefits for long-term care. Distributing assets before resolving a Medicaid claim can result in personal liability for the personal representative.

If you are uncertain whether the deceased received Medicaid benefits, you can request a recovery determination from MDH directly. It is better to check and find no claim than to distribute first and receive a demand later.