Maryland probate runs through the county Orphans' Court (or Circuit Court in Montgomery and Harford Counties). The process is public, takes 9–15 months, and costs money in personal representative commissions, attorney fees, and Register of Wills court costs. A properly funded revocable living trust bypasses all of it.
For Maryland families with real estate in multiple counties, business interests, or estates that might trigger Maryland's estate tax ($5M threshold) or inheritance tax, a trust isn't optional — it's essential.
Maryland's Unique Dual Tax System
Estate Tax: Applies to estates over approx. $5M (2026). Married couples can shelter the full amount through bypass trust planning — but only with proper legal structures.
Inheritance Tax (10%): Applies to non-exempt beneficiaries — siblings, nieces, nephews, step-children, friends. Even a modest estate can generate significant inheritance tax liability if assets pass to the wrong beneficiaries in the wrong structure.
Trusts We Draft in Maryland
Six Trust Types for Maryland Families
Foundation
Revocable Living Trust
Control your assets during your lifetime. Pass them to beneficiaries at death without Orphans' Court. Change or revoke at any time. The foundation of most Maryland estate plans.
Tax & Asset Protection
Irrevocable Trust
Removes assets from your taxable estate for Maryland estate tax purposes. Protects from creditors. Cannot be changed once funded — requires careful planning and commitment.
Blended Family
QTIP Marital Trust
Provides income to a surviving spouse while preserving principal for children of a prior marriage. Also directly addresses Maryland's 10% inheritance tax exposure for step-children.
Disability Planning
Special Needs Trust
Preserves Medicaid and SSI eligibility for a disabled beneficiary while providing supplemental financial support beyond what government programs cover.
Long-Term Care
Medicaid Asset Protection Trust
Protects assets from Maryland Medicaid spend-down — with a 5-year look-back period. Must be funded at least 5 years before care is needed. Early planning is everything.
Charitable Giving
Charitable Remainder Trust
Provides income to you during your lifetime with the remainder passing to charity — with significant Maryland income and estate tax benefits. Ideal for highly appreciated assets.
The Path Forward
Four Steps to a Maryland Trust
1
Consultation — Choose the Right Trust Type
We assess your Maryland estate, family situation, tax exposure, and goals. We model your estate for both inheritance tax and estate tax before recommending any structure.
2
Trust Drafting — Maryland Trust Act Compliant
We draft a trust agreement reflecting Maryland Trust Act requirements — with clear trustee succession, distribution terms, incapacity provisions, and inheritance tax optimization.
3
Funding — Maryland Real Property, Accounts, Business Interests
We coordinate transfer of Maryland real estate via deed recorded with SDAT, bank and brokerage accounts, business interests, and advise on retirement account beneficiary coordination. Most clients complete funding within 30–60 days.
4
Ongoing Maintenance as Life Changes
We help you add newly acquired Maryland property, update beneficiaries, and revise trust terms as your family situation and estate evolve. A trust is a living document.
Your Attorney
Estate Planning Counsel
SV
Sunil Varghese
Georgetown Law · Partner, Estate Planning
New York Bar DC Bar Maryland Bar
Sunil creates and administers trust structures for Maryland families from our Bethesda office — from straightforward revocable living trusts to complex irrevocable structures for estates with Maryland estate tax and inheritance tax exposure.
View Full Profile → Common Questions About Maryland Trusts
Does a Maryland revocable trust avoid Orphans' Court probate?
Yes — assets held in a properly funded revocable living trust pass directly to your beneficiaries at death without going through Maryland's Orphans' Court. This saves time, cost, and preserves privacy.
What is the Maryland Medicaid look-back period for trusts?
Maryland's 5-year Medicaid look-back applies to trust transfers made to a Medicaid Asset Protection Trust (MAPT). Assets transferred to a MAPT within 5 years of applying for Medicaid may be subject to a penalty period. Early planning — before any care need arises — is critical.
How does Maryland's inheritance tax affect trust planning?
Maryland's 10% inheritance tax applies to assets passing to non-exempt beneficiaries (siblings, nieces, nephews, friends) — even from a trust. We structure trust distributions and beneficiary designations to minimize inheritance tax exposure where possible.
Do I need to transfer my Maryland real estate into the trust?
Yes — Maryland real estate must be transferred into the trust via a new deed recorded with the Maryland State Department of Assessments and Taxation (SDAT). An unfunded trust is effectively useless at death. We prepare and record Maryland deeds as part of every trust engagement.
Ready to protect your Maryland estate from probate? Schedule your Maryland trusts consultation or browse our estate planning FAQ.
Estate Planning Notice: Estate planning laws vary by state and change frequently. This website provides general information only and does not constitute legal advice. A consultation with an attorney licensed in your state is required for legal advice tailored to your situation. Wills and trusts must be executed in accordance with state law or they may be invalid. The information on this site does not create an attorney-client relationship.
