Legal Question in Wills and Trusts in Maryland

Generally a spouse does not pay inheritance tax (federal or state).

Some assets passing to a spouse may incur INCOME tax (say an IRA that wasn't originally taxed and that is cashed out at death) at up to 35%. However, at this level estate planning is very prudent, since at the death of both spouses children/heirs may be hit with a huge tax burden. Federal tax rates vary (up to some 55%), on top of any state inheritance tax (rates in Maryland 16%). Creating trusts can avoid or minimize some of the enormous tax burden which may incur after both spouses die.

I encourage you to consult with an estate planning attorney in this state to get more details relevant to your particular situation.