2025 Maryland Legislative Session Estate & Trust Update

The 2025 Legislative Session saw a number of Bills impacting the Estate & Trust practice area. 

Notably, Governor Moore introduced a Budget Proposal that included a full repeal of Maryland’s Inheritance Tax and a significant reduction in the Maryland Estate Tax Exemption (from the current $5 Million per person to $2 Million per person).  These changes ultimately did not become law. A Bill altering the definition of a Maryland Resident for income tax changes was also introduced but did not pass.

The Bills that are becoming law, pending any vetoes to be made by the Governor, included the following:

• Priority of Claims on an Estate/Unpaid Child Support: A claim for unpaid child support of a decedent will now be considered a priority claim in an insolvent estate. (HB0261 – Effective October 1, 2025)
• Domestic Partnership – Required Information: Individuals registering a Domestic Partnership will be required to submit their full names, dates of birth, and Social Security numbers (if they have one). (SB 286 – Effective October 1, 2025)
• Compensation of Guardians of Property and Trustees: (SB 19 – Effective October 1, 2025). Trustees will be permitted to charge compensation that is reasonable under the circumstances. Guardians will be entitled to compensation according to a statutory formula.
• Task Force to Study Fiduciary Adjudication: A task force is being established to study Fiduciary Adjudication in Maryland, which will involve examining and analyzing the efficiency, uniformity, and quality of fiduciary adjudication in Maryland and making recommendations. (HB0315 – Effective July 1, 2025)
• Resignation of Trustee: The Maryland Trust Code will now provide that a Trustee can resign on 30 days’ notice to certain parties. (SB 126 – Effective October 1, 2025)
• Decanting – Notification: The method and requirements for a notice regarding the exercise of a decanting power are now specified to be the same as the general notice under the Maryland Trust Code. (SB 158 – Effective October 1, 2025

If you have any questions or concerns regarding the impact of these legislative changes on your situation, please contact us at (410) 497-5947 or schedule a consultation.