SoMD Estate Planning

Estate Planning Attorneys in Southern Maryland

inheritance

Maryland Estate Tax vs. Inheritance Tax: What Is the Difference?

Maryland is one of only a few states in the nation that imposes both an estate tax and an inheritance tax. These are two separate taxes that can significantly impact what your family receives. Understanding the difference — and how to plan for both — is essential for protecting your legacy.

The Maryland Estate Tax

The estate tax is a tax on the total value of a deceased person’s estate before it is distributed to heirs. Maryland’s estate tax exemption is $5 million — meaning estates valued above this threshold are subject to Maryland estate tax at rates up to 16%. This is separate from and in addition to the federal estate tax exemption, which is significantly higher.

The Maryland Inheritance Tax

The inheritance tax is different — it is a tax on what individual beneficiaries receive, not on the estate as a whole. Maryland’s inheritance tax rate is 10% on the value of assets received. However, certain beneficiaries are exempt: spouses, parents, grandparents, children, grandchildren, siblings, and certain other close relatives pay no inheritance tax. The tax primarily affects more distant relatives and non-related beneficiaries.

How Both Taxes Can Apply Simultaneously

In a worst-case scenario, a large estate could be hit with both the estate tax on the overall estate value and the inheritance tax on distributions to non-exempt beneficiaries. Proper planning can minimize or eliminate both taxes through strategies like lifetime gifting, charitable giving, trust structures, and proper use of marital deductions.

Plan Ahead to Protect Your Family

Tax planning is a critical component of estate planning in Maryland. At SoMD Estate Planning, we help families understand their potential tax exposure and implement strategies to minimize it. Contact us for a free consultation to review your situation.

How Probate Works in Maryland: A Step-by-Step Overview

When a loved one passes away, the last thing grieving families want to deal with is a complex legal process. Yet in Maryland, probate is often an unavoidable step in settling an estate. Understanding how it works can help you prepare — and potentially avoid it altogether with the right planning.

What Is Probate?

Probate is the court-supervised process of validating a will, paying debts and taxes, and distributing a deceased person’s assets to their beneficiaries. In Maryland, probate is handled by the Orphans’ Court in the county where the decedent lived — including Charles County, Calvert County, St. Mary’s County, and Prince George’s County.

The Maryland Probate Process Step by Step

The process begins when someone files the original will and a petition for probate with the Register of Wills. The court then appoints a personal representative — either the executor named in the will or an administrator if there is no will. The personal representative must inventory all assets, notify creditors, pay valid debts and taxes, and ultimately distribute remaining assets to beneficiaries. Maryland offers two types of probate: administrative probate for straightforward estates and judicial probate for contested situations.

How Long Does Probate Take?

Simple estates can sometimes be settled within six to nine months. However, complicated estates, contested wills, or situations involving significant debt can take a year or longer. During this time, beneficiaries generally cannot access probate assets.

Small Estate Shortcuts

Maryland offers a simplified process for small estates. If the total value of probate assets is $50,000 or less (or $100,000 or less if the sole heir is a surviving spouse), the estate may qualify for a small estate proceeding, which is faster and less expensive.

How to Avoid Probate

Several strategies can help assets pass outside of probate entirely. Revocable living trusts, joint ownership with right of survivorship, payable-on-death designations on bank accounts, and proper beneficiary designations on retirement accounts and life insurance all bypass the probate process.

At SoMD Estate Planning, we help families structure their estate plans to minimize or avoid probate entirely. Schedule a free consultation to learn which strategies make sense for your situation.

Do I Really Need a Will in Maryland? What Happens Without One

It is a question we hear all the time from clients across Southern Maryland: “Do I really need a will?” The answer is almost always yes — and the consequences of not having one can be far more serious than most people realize.

What Happens If You Die Without a Will in Maryland?

When someone passes away without a valid will, they are said to have died “intestate.” In Maryland, intestacy laws determine exactly how your assets are distributed — and the results may not align with what you would have wanted.

Under Maryland’s intestacy statutes, if you are married with children, your spouse receives the first $40,000 of your estate plus half of the remaining balance. The rest goes to your children. If you are unmarried, everything typically goes to your children in equal shares. If you have no children, your assets may pass to parents, siblings, or more distant relatives — potentially people you would never have chosen to inherit your property.

The Real-World Consequences

Dying without a will does not just affect asset distribution. It creates a cascade of complications for the people you leave behind. Without a will, there is no named executor — meaning the court must appoint a personal representative, which takes time and may not be someone you would have trusted with that responsibility.

For families with minor children, the stakes are even higher. A will is the primary legal mechanism for naming a guardian for your children. Without one, a judge makes that decision — potentially someone you would not have chosen.

Common Myths That Keep People from Getting a Will

“I do not own enough to need a will.” — You do not need to be wealthy. If you own a car, have a bank account, or possess any personal property, a will helps ensure those items go where you intend.

“My spouse will automatically get everything.” — As noted above, Maryland law does not guarantee your spouse receives all of your assets. Depending on whether you have children or surviving parents, the distribution can be divided in ways that may surprise you.

“I am too young to worry about it.” — Accidents and unexpected illness do not discriminate by age. Young families with children have some of the most urgent reasons to have a will in place.

What a Simple Will Does for You

A simple will lets you name exactly who receives your property, appoint a trusted executor to manage the process, designate guardians for your children, and even specify your wishes for funeral arrangements. It is one of the most straightforward and affordable legal documents you can create — and one of the most impactful.

Take the First Step Today

Creating a will does not have to be complicated or expensive. At SoMD Estate Planning, we offer streamlined, tech-forward will preparation that makes the process quick and convenient. Schedule a free consultation today and let us help you protect the people who matter most.