Are you dealing with the probate process in Maryland? If so, it’s important to understand the state’s estate taxes and fees. This guide will help you navigate the complexities of Maryland’s probate process, including the various taxes and fees you may encounter.
What Are Estate Taxes?
Estate taxes are a tax on the transfer of property after someone passes away. In Maryland, the tax is assessed on the value of the decedent’s assets at the time of death. The purpose of the estate tax is to generate revenue for the state and to prevent wealthy individuals from passing on their wealth without paying their fair share of taxes. However, estate taxes can be a complicated area of law. It’s important to work with an experienced Maryland probate attorney who can help you navigate the process and minimize your tax liability.
Maryland Estate Taxes
Maryland is one of only a few states that has both an estate tax and an inheritance tax. The estate tax is based on the value of the decedent’s assets at the time of death, while the inheritance tax is based on the relationship between the decedent and the beneficiary.
Here are some important things to know about Maryland estate taxes:
- Maryland has an estate tax exemption of $5 million for individuals who died in 2019. The exemption will increase each year until it reaches $5.9 million in 2023.
- The maximum estate tax rate in Maryland is 16%.
- Maryland’s estate tax is not tied to the federal estate tax, so even if you are not subject to federal estate tax, you may still owe Maryland estate tax.
- Maryland does not have a gift tax.
What Are Probate Fees?
Probate fees are the various costs associated with the probate process, which is the legal process of administering a person’s estate after they pass away. These fees can include court costs, attorney fees, appraisal fees, and other expenses that may arise during the probate process. Probate fees can add up quickly and can be a significant burden on an estate, which is why it’s important to work with a knowledgeable probate attorney who can help you understand what to expect and how to minimize costs wherever possible.
Maryland Probate Fees
In addition to estate taxes, there are also various fees associated with the probate process in Maryland. These fees can add up quickly, so it’s important to understand what you can expect to pay.
Here are some important things to know about Maryland probate fees:
- The probate court charges a fee for filing the initial petition for probate. The fee is based on the value of the assets subject to probate and can range from a few hundred to several thousand dollars.
- If you need to sell real estate as part of the probate process, you will need to pay a fee to the Maryland Department of Assessments and Taxation. The fee is based on the value of the property being sold.
- There may be additional fees for things like appraisals, accountings, and legal services.
Work with Blackford & Flohr for the Best Anne Arundel County Probate Attorneys
Dealing with probate in Maryland can be a complex and challenging process. That’s why it’s important to have the right legal team on your side. At Blackford & Flohr, we have the experience and expertise necessary to help you navigate the probate process with ease. Our attorneys have a deep understanding of Maryland’s probate laws and can provide you with the guidance and support you need to ensure a smooth and successful probate process. We will work with you every step of the way to ensure that your rights and interests are protected.
If you need help with probate in Anne Arundel County, don’t hesitate to contact us today. We offer a free consultation to all prospective clients so you can learn more about our Maryland probate services and how we can assist you. Call 410-647-6677.
