PARRIS N. GLENDENING, Governor

Ch. 693

after the order is served upon him. If the personal representative does not have sufficient
funds, the claimant may at a later date resubmit his petition when the personal
representative has sufficient funds.

Article - Tax - General

7-203.

(g) 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]
$1,000.

(K) THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF PROPERTY
THAT IS INCOME, INCLUDING GAINS AND LOSSES, ACCRUED ON PROBATE ASSETS
AFTER THE DATE OF DEATH OF THE DECEDENT.

7-204.

(a) In this section, "clear value" means fair-market value minus expenses.

(b) Except as provided in [subsection] SUBSECTIONS (c) AND (D) of this section,
the inheritance tax rate is 10% of the clear value of the property that passes from a
decedent:

(c) The inheritance tax rate is 1% of the clear value of:

(1) the property that passes from a decedent to or for the use of:

(i) a grandparent of the decedent;

(ii) a parent of the decedent;

(iii) a spouse of the decedent;

(iv) a child or other lineal descendant of the decedent;

(v) a stepparent or stepchild of the decedent; or

(vi) a corporation if all of its stockholders consist of the surviving
spouse; parents, stepparents, stepchildren, lineal descendants of the decedent, and
spouses of the lineal descendants; and

(2) the first $2,000 that passes from the decedent, by survivorship, to a
spouse of a lineal descendant of the decedent from savings accounts that the decedent
and spouse of the lineal descendant held jointly.

(D) THE INHERITANCE TAX RATE IS 8% OF THE CLEAR VALUE OF THE
PROPERTY THAT PASSES FROM A DECEDENT TO THE DECEDENT'S SIBLINGS.

[(d)] (E) If a decedent died on or before May 31, 1975, the rate of the inheritance
tax is the rate in effect on the date of the decedent's death.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
January 1, 1998, and shall apply to the estates of persons who die on or after January 1,
1998.

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