Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Does Maryland have an inheritance tax?

Maryland imposes an inheritance tax when a Maryland resident has the right to property from a decedent. The tax is imposed on transfers of both probate and nonprobate assets. A 1 percent tax, known as the direct rate, is imposed on the value of property passed to lineal legatees (grandparents, parents, spouses, children, stepchildren, stepparents). A 10 percent rate, known as the collateral rate, is imposed on the value of property passed to all others.

Frank Savarese, CPA, Weyrich, Cronin & Sorra

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

Pub Date: 3/30/99