Maryland Probate Fees and Executor Compensation: What It Costs to Settle an Estate

One of the first questions families ask when settling a Maryland estate is: what is this going to cost? The answer involves at least three separate categories of expense — Register of Wills administrative fees, personal representative compensation, and attorney fees — all of which operate under specific Maryland statutory rules.

Understanding these costs in advance helps executors make informed decisions about whether to hire an attorney, whether to claim a commission, and how much the estate will pay before anything reaches the beneficiaries.

Register of Wills Administrative Fees

Maryland charges a mandatory administrative fee when a regular estate is opened with the Register of Wills. This fee is based on the total value of the probate estate — meaning assets subject to Maryland administration, calculated as principal inventory value plus income receipts and any valuation increases during the administration period.

The fee schedule for regular estates is:

For small estates — those with gross probate assets of $50,000 or less (or $100,000 if the surviving spouse is the sole heir) — the fee structure is more favorable. For small estates opened after October 1, 2022, with probate assets under $50,000, the Register of Wills fee is $0 — no administrative fee at all for qualifying small estates. For small estates between $5,000 and $50,000 that do not qualify for the zero-fee exemption, fees are calculated at a lower rate.

These fees are paid to the Register of Wills from the estate's assets as part of the administration costs. They are not negotiable and cannot be waived.

Executor (Personal Representative) Compensation

Under Maryland Estates and Trusts § 7-601, the personal representative is entitled to statutory compensation from the estate. The maximum allowable commission is:

• 9% of the first $20,000 of the gross estate (maximum of $1,800)
• 3.6% of the gross estate value above $20,000

This is calculated on the gross estate — meaning the total value of probate assets before debts are paid — not the net amount that ultimately goes to beneficiaries.

Example: For an estate with $300,000 in probate assets:

• 9% of $20,000 = $1,800
• 3.6% of $280,000 = $10,080
• Maximum total commission = $11,880

A few important points about Maryland executor compensation:

The commission is a maximum, not a guaranteed amount. The personal representative can take less, decline the commission entirely (common when the executor is also a major beneficiary), or claim whatever amount they choose up to the statutory cap.

The commission pool is shared. Maryland's statutory commission covers both the personal representative's fee and the attorney's fees together. If both parties claim compensation from the estate, their combined total cannot exceed the statutory formula. This means that if the personal representative claims the full statutory commission, the attorney's fees cannot also be paid from the same statutory pool.

Incidental expenses are absorbed within the commission. Travel costs, personal time spent organizing documents, and similar administrative activities are generally considered absorbed within the commission and cannot be claimed separately as administrative expenses. This prevents double-billing the estate for the same work.

Court approval is required to exceed the statutory limits. In unusual circumstances — very complex estates, high-stakes litigation, or extensive professional services beyond typical administration — the personal representative or attorney can petition the Orphans' Court for additional compensation. This is granted sparingly and requires detailed justification.

Attorney Fees

Maryland probate law does not require an estate to hire an attorney. Many small estates and straightforward regular estates are administered without legal representation, particularly when the personal representative is familiar with administrative processes or uses a structured guide to work through the statutory requirements.

When an attorney is engaged, their fees come from the same statutory commission pool described above. If the attorney's fees are deducted from the estate, those fees reduce the amount available for the personal representative's commission — and vice versa.

For estates where both the personal representative and the attorney are billing from the estate, the practical result is that they negotiate a split of the available statutory commission. In practice, for large estates, this often means the personal representative takes a partial commission and the attorney takes the remainder.

Maryland Estate Tax Threshold

The Maryland estate tax is a separate matter from probate fees. It applies to large estates, and for most families, it is not a factor.

The Maryland estate tax exclusion threshold is $5,000,000. Estates with a gross value below this threshold owe no Maryland estate tax. The estate tax return (Form MET-1) must be filed within nine months of the date of death only if the gross estate exceeds $5,000,000.

For estates above the threshold, the tax is calculated on a graduated scale, reaching a maximum marginal rate of 16% on the taxable portion of the estate.

A few features of Maryland's estate tax that are worth knowing even for estates below the threshold:

Portability. Maryland allows a surviving spouse to claim the deceased spouse's unused estate tax exemption. If the first spouse's estate is below $5,000,000, the surviving spouse can elect to capture that unused exemption, potentially shielding up to $10,000,000 in the surviving spouse's eventual estate. Claiming portability requires filing a MET-1 even when no tax is owed — if you miss the nine-month deadline, the portability option is lost.

Agricultural property. Qualified agricultural property benefits from an additional exclusion of up to $5,000,000, with any agricultural value above that amount taxed at a reduced rate not to exceed 5%.

The payment deadline is firm. If an estate does owe Maryland estate tax, the payment is due within nine months of death regardless of whether the personal representative requests an extension to file. A filing extension does not extend the payment deadline. Interest and penalties (up to 10%) apply to underpaid tax after the nine-month deadline.

The threshold is fixed. Unlike the federal estate tax exemption, Maryland's $5,000,000 threshold is not indexed for inflation. It has remained at $5,000,000 since 2019.

The Total Cost in Context

For a $300,000 regular estate in Maryland:

The inheritance tax is often the biggest variable cost for mid-size estates. A $300,000 estate passing to a nephew would generate $30,000 in inheritance tax — a figure that dwarfs the Register's filing fee and potentially rivals the full commission.

Minimizing Costs Without Creating Liability

Personal representatives who want to minimize estate costs should understand two things:

1. You do not have to take a commission. If you are a primary beneficiary, declining the commission reduces expenses and increases your net inheritance. There is no legal obligation to claim the fee.

2. Hiring an attorney is not required for most small estates. The Maryland small estate process is designed to be navigable without legal representation, particularly when the estate is straightforward — a sole surviving spouse, one or two financial accounts, and no disputes. A structured guide can replace a significant portion of attorney involvement for simple estates.

For more complex situations — estates with disputed debts, blended families, elective share elections, Medicaid recovery claims, or gross estates approaching the $5,000,000 threshold — legal and tax counsel is worth the cost relative to the liability exposure.

The Maryland Estate Settlement Guide walks through the full administration timeline including when and how probate fees are paid, how the commission pool works, and how to document your expenses to protect yourself from personal liability as the executor.

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