Filing the Estate Tax Return

The Maryland estate tax return must be filed within nine months of the decedent's date of death unless an extension has been granted by the Comptroller's Office.

Generally, a return is required for every estate whose federal gross estate, plus adjusted taxable gifts, plus property for which a Maryland Qualified Terminal Interest Property (QTIP) election which previously made on a Maryland estate tax return filed for the estate of the decedent's predeceased spouse, equals or exceeds $1,000,000 and the decedent at the date of death was a Maryland resident or a nonresident but owned real or tangible personal property having a taxable situs in Maryland.

The filing requirement also varies depending on the year of the decedent's death. The chart below lists the different federal gross estate levels during the last decade that required an estate tax filing.

Gross estate

The gross estate includes all property, real or personal, tangible or intangible, wherever situated, in which the decedent had an interest. It includes such items as annuities, joint assets with right of survivorship, transfers made without adequate consideration, the includible portion of tenancies by the entirety, certain life insurance proceeds, and general power of appointment property, to name a few. The value of the property must be based upon an appraisal from a Certified Appraiser.

Probate estate

The probate estate is property of the decedent owned individually or as tenants in common. Non-probate property is property that passes by the terms of the instrument under which it is held or by operation of law. The total gross estate for estate tax purposes includes probate and non-probate property. To determine the value of the gross estate, visit the IRS Web site and review § 2031 of the Internal Revenue Code.

Form MET-1

You must complete the federal estate tax return first before filing the Maryland estate tax return. If the estate is not required to file a federal return, you must still complete a pro forma federal return. Using information from the federal return, you should complete the Maryland estate tax return, Form MET-1.

Attachments

Include the federal return, complete with all schedules, attachments and supporting documents when filing the Maryland estate tax return. If the federal estate tax return is required to be filed with the IRS because estate assets exceed the federal filing threshold, do not include supporting documents or attachments with the federal return attached to the Maryland estate tax return. These documents should be retained by the estate representative for possible state audit and may be requested at a later date. In all cases, you must submit a certified death certificate, the last will and testament and any applicable trusts.

Two filing options

The Maryland estate tax return may be filed with the local Register of Wills or the Comptroller of Maryland. If the estate tax return is filed with the Register of Wills, it must be filed with the Register of Wills office for the county in which the estate is being administered. For nonresident decedents, this is the jurisdiction in Maryland where the decedent's property is located. The Register must also complete Section III on the estate tax return to certify the payment of any inheritance taxes.

If the estate tax return is filed with the Comptroller of Maryland, a certification of inheritance tax must also be submitted, using a separate certification document provided by the Register of Wills. A Maryland estate tax return is not deemed complete for processing until the certification of inheritance tax is received by the Comptroller. Failure to file the certification with the return will delay the processing of your return.

Use the appropriate version of Form MET-1 for the date of the decedent's death. See Maryland Estate Tax for a list of MET-1 forms.

Payment

The estate tax payment should be paid directly to the Comptroller of Maryland on or before the due date of the Maryland estate tax return. The payment should not be sent to the Register of Wills.