Maryland is one of only a handful of states that imposes both an estate tax and an inheritance tax. While the estate tax threshold is relatively high ($5 million), the inheritance tax applies to assets passing to non-exempt beneficiaries regardless of estate size — making Maryland one of the more complex states for estate administration.
How Probate Works in Maryland
Maryland probate is administered through the Orphans' Court — a specialized probate court that exists in most Maryland counties. In Montgomery County, Prince George's County, and Howard County, the Circuit Court handles probate matters instead. The Register of Wills in each county processes filings and assists with administration.
The personal representative qualifies before the Register, obtains Letters of Administration, and proceeds to inventory assets, publish a notice to creditors, pay debts and taxes, and ultimately file a final accounting with the court. Maryland requires a final accounting in most estates, adding a formal step at the close of administration.
Small Estate Shortcuts in Maryland
When the gross estate is $50,000 or less (or $100,000 if the sole heir is a surviving spouse), Maryland allows a simplified small estate administration. The process requires filing with the Register of Wills but involves far less paperwork and court oversight than full probate. Assets can typically be distributed within a few months.
Maryland Estate Tax and Inheritance Tax
Maryland imposes a state estate tax on estates exceeding approximately $5 million, with rates up to 16%. Maryland also imposes a 10% inheritance tax on assets passing to non-exempt beneficiaries. Exempt beneficiaries (who pay no inheritance tax) include: spouses, children, grandchildren, parents, grandparents, and siblings. Non-exempt beneficiaries — including nieces, nephews, friends, and domestic partners — pay 10% on amounts they receive.
How Long Does Probate Take in Maryland?
Maryland probate typically takes 9 to 18 months. The 6-month creditor period and the required final accounting drive the timeline. Montgomery County and Baltimore City courts can experience significant scheduling backlogs; rural counties move faster.
Executor Compensation
Maryland personal representatives are entitled to reasonable compensation — up to 9% of the estate's value (for estates under $20,000) or a combination of a percentage and flat fees for larger estates. Courts may reduce fees if the estate is simple or if the representative also stands to inherit. All compensation is subject to Orphans' Court approval.