DATE OF DEATH July 1, 2004 through June 30, 2010
INHERITANCE TAX EXEMPTIONS Tax-General § 7-203
The inheritance tax does not apply to the receipt of property that passes from a decedent to or for the use of:
(1) a spouse of the decedent;
(2) a parent of the decedent (“parent” includes a stepparent or former stepparent);
(3) a child of the decedent or a lineal descendant of a child of the decedent (“child” includes a stepchild or
former stepchild);
(4) a grandparent of the decedent;
(5) a brother or sister of the decedent;
(6) a spouse of a child of the decedent or a spouse of a lineal descendant of a child of the decedent;
(7) a corporation, partnership, or limited liability company if all of its stockholders, partners, or members
consist of individuals specified in items 1 through 6 above.
Note: For the spouse of a child of the decedent or spouse of other lineal descendant to be exempt from tax, the child or other lineal descendant had to
be living at the decedent’s date of death.
TAX RATE Tax-General § 7-204
Collateral Inheritance tax - 10% applicable for distributions to all others
If the Will contains a sufficient tax clause, inheritance tax on a specific bequest is not subtracted from the
bequest and is computed at the higher rate as follows:
10.0% Collateral inheritance tax - higher rate is 11.11111%
Absent a tax clause, the bequest is reduced by the inheritance tax at the rate of 10%,
When a partial distribution of the residuary estate is reflected in an interim account and inheritance tax is not
withheld from the partial distribution, the higher rate is applied to the actual amount received by the beneficiary. The
tax is considered an expense of the estate.
ADDITIONAL EXEMPTIONS FROM INHERITANCE TAX Tax-General § 7-203
The inheritance does not apply:
(1) if a charitable organization is exempt under Section 501(c)(3) of the Internal Revenue Code, or to which
certain transfers are deductible under § 2055 of the Internal Revenue Code, and in accordance with
Tax-General § 7-203(e)
(2) to the receipt of the family allowance to the surviving spouse and minor child of a decedent under Estates
and Trusts § 3-201
(3) to the receipt of property that passes from a decedent to any one (1) person if the total value of the
property does not exceed $1,000.00.
(4) to the receipt of property that is income, including gains and losses, accrued on probate assets
after the date of death of the decedent. (The inheritance tax is not assessed on a gain realized on the sale
of a probate asset. Additionally, the inheritance tax is not reduced by a loss realized on the sale of a
probate asset. The inheritance tax is based on the value of the asset as reported in the Inventory.
However, any gain/loss realized on a transaction is subject to accounting by a personal representative.)
FAMILY ALLOWANCE Estates and Trusts § 3-201
A surviving spouse of a decedent is entitled to an allowance of $5,000 for personal use.
An allowance of $2,500 for the use of each unmarried child of the decedent who has not attained the age of 18
years at the time of the death of the decedent shall be paid by the personal representative to the guardian of the
minor. If there is no guardian, payment may be made to the parent or grandparent with whom the minor resides, or
deposited in a financial institution as provided in Estates & Trusts § 13-501(b).
FUNERAL EXPENSES Estates and Trusts § 8-106
For an estate opened prior to October 1, 2015, contact the Register of Wills for applicable funeral allowance.