Domestic Partners May Get a Break on the Maryland Inheritance Tax

Yesterday I wrote about the Maryland inheritance tax, which applies to transfers of Maryland property from a deceased person to any one or more of the following in relation to the deceased person: a domestic partner, niece, nephew, cousin, aunt, uncle, step-grandchild, friend, or non-exempt organization. If the deceased person leaves Maryland property to any one of these types of individuals or organizations, the inheritance tax on the transfer is 10%.

But just this week the Maryland General Assembly approved a bill that will exempt from the inheritance tax the primary residence owned in joint tenancy by Maryland domestic partners. We'll just have to wait and see if Governor Martin O'Malley signs the bill into law later this year.

• Understanding Death, Estate and Inheritance Taxes
• Understanding Maryland Inheritance Taxes
• Understanding Maryland Estate Taxes
• State Inheritance Tax Chart
• Text of Senate Bill 785: Inheritance Tax - Exemption - Domestic Partners