Inheritance is a huge part of estate planning. In Maryland, inheritance laws determine who is legally entitled to receive assets from a deceased person’s estate. Understanding the basics of Maryland inheritance laws can help you plan for your estate and prepare to receive an inheritance.
Rules for inheritance in Maryland
Inheritance laws in Maryland are found in sections of the Estates and Trusts Article of the Maryland Code. Generally speaking, only a person’s legal heirs are entitled to receive assets from their estate. Legal heirs include spouses, children and parents of the deceased. If there are no legal heirs, then assets pass to the intestate estate of the deceased person, which the State of Maryland manages.
Restrictions on who can receive an inheritance
Certain individuals may not be eligible to receive an inheritance in Maryland, including creditors of the deceased’s estate and those convicted of certain crimes. In addition, a spouse may be barred from inheriting if they are convicted of a felony or voluntarily abandons the other spouse. It’s a good idea to keep these things in mind while estate planning.
Types of assets that can be inherited
In Maryland, you can inherit various assets, including real estate, bank accounts and investments, personal property such as cars or jewelry and other valuable items. You may also receive proceeds from life insurance policies and retirement accounts.
Maryland inheritance taxes
Maryland does impose an inheritance tax on certain types of assets. This tax is calculated based on the value of the assets and the relationship between the deceased and the beneficiary. The state also imposes an estate tax on larger estates. Both of these taxes must be paid before assets can be distributed to the beneficiaries.
By understanding Maryland inheritance laws, you can be better prepared for any changes in your estate or prepare to receive an inheritance. Awareness of the laws can help ensure that your assets are distributed according to your wishes.