Ch. 2                                    LAWS OF MARYLAND

THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF
PROPERTY THAT PASSES FROM A DECEDENT TO ANY 1 PERSON IF THE TOTAL
VALUE OF THE PROPERTY DOES NOT EXCEED $150.

(H) SMALL ESTATE.

THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF
PROPERTY THAT PASSES FROM A DECEDENT IF THE ESTATE OF THE
DECEDENT QUALIFIES UNDER § 5-601 OF THE ESTATES AND TRUSTS
ARTICLE FOR ADMINISTRATION AS A SMALL ESTATE.

(I) STATE, COUNTY OR MUNICIPAL CORPORATION.

THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF
PROPERTY THAT PASSES FROM A DECEDENT TO THE STATE, A COUNTY, OR A
MUNICIPAL CORPORATION OF THE STATE.

(J) SURVIVING SPOUSE.

THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF
PROPERTY THAT PASSES FROM A DECEDENT TO THE SURVIVING SPOUSE OF
THE DECEDENT AND IS:

(1)  AN INTEREST IN PROPERTY THAT IS HELD IN THE NAME
OF THE DECEDENT AND THE SURVIVING SPOUSE AND PASSES BY RIGHT OF
SURVIVORSHIP;

(2)  REAL PROPERTY; OR

(3)  THE FIRST $100,000 OF PROPERTY OTHER THAN:

(I)  REAL PROPERTY; OR

(II)  AN INTEREST IN PROPERTY THAT PASSES BY
RIGHT OF SURVIVORSHIP.

REVISOR'S NOTE: Subsection (a) of this section is new
language added to incorporate by reference the "death
benefits" exemption that appears in present ET §
ll-105(e), as that exemption relates to the
inheritance tax.

Subsections (b), (c), and (e) through (j)(3)(i) of
this section are new language derived without
substantive change from former ET §§ 3-201(b) and
5-601(c) and former Art. 81, § 149(d), the second
through fourth sentences of § 150(a), the eighth
sentence and the surviving spouse exemption in the
first sentence of § 151, and, as it related to the
inheritance tax, the first sentence of § 174.

Subsection (d) of this section is new language added
to clarify that life insurance proceeds -- except
proceeds payable to the decedent's estate -- are

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