Maine Estate Tax Guide
Last updated: 11 Nov 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Maine Estate Tax & Probate — Complete Guide
What executors and families need to know about Maine probate and estate tax: who is taxed, what’s taxed, 2025 $7,000,000 exclusion with 8%/10%/12% bands, nonresident apportionment, situs rules (incl. pass-through look-through), forms, deadlines, lien discharge, and planning. See official MRS pages & statutes linked throughout.
Maine Inheritance & Probate Basics
Intestacy & probate courts
Probate matters are handled in Maine’s county Probate Courts. If there is no will, distribution follows Maine intestacy rules; executors should coordinate early on valuations and any 706ME filing.
How Maine probate works
Typical steps: petition & personal representative appointment, notice to interested parties/creditors, inventory, pay debts & taxes, interim/final accountings, decree of distribution, close estate. Maine provides streamlined options for small/simple estates.
Maine Estate Tax — At a Glance
Need a fast estimate? Try the Maine Estate Tax Calculator.
Official Pages, Forms & Where to File
- Maine Revenue Services — Estate Tax (706ME) overview (exclusion/rates, filing, addresses). :contentReference[oaicite:9]{index=9}
- Forms (2025): 706ME & 700-SOV page (return, statement of value for lien discharge). :contentReference[oaicite:10]{index=10}
- Statutes: Maine Estate Tax — § 4103 (resident), § 4104 (nonresident), § 4112 (lien). :contentReference[oaicite:11]{index=11}
- Rules: Rule Chapter 603 (Apr 27, 2024) — filing requirements, statements, and lien releases. :contentReference[oaicite:12]{index=12}
- FAQ: MRS Estate Tax FAQ (history of exclusion amounts; lien Q&A). :contentReference[oaicite:13]{index=13}
Maine Situs vs. Non-Situs Property (for Nonresidents)
| Asset type | Maine treatment | Reference |
|---|---|---|
| Real property in Maine | Included in Maine estate & apportionment numerator | 36 M.R.S. § 4104. :contentReference[oaicite:14]{index=14} |
| Tangible personal property kept in Maine | Included | 36 M.R.S. § 4104. :contentReference[oaicite:15]{index=15} |
| Intangibles (stock, cash, brokerage) | Generally outside Maine for nonresidents (unless business situs facts) | 36 M.R.S. Ch. 577. :contentReference[oaicite:16]{index=16} |
| Pass-through entity holds Maine real/tangible | Entity may be disregarded (look-through) if not an active business | Ch. 577 PDF (look-through). :contentReference[oaicite:17]{index=17} |
Document physical location at death (and for recent gifts) to support apportionment; maintain deeds, storage/garaging records, and appraisals.
Automatic Lien & Discharge
- Maine estate tax creates an automatic lien on Maine real & tangible property at death; survivorship property passing to a spouse is excepted. :contentReference[oaicite:18]{index=18}
- If no return is required but title must be cleared, file 700-SOV with a Certificate of Discharge request to MRS; record the discharge with the Registry of Deeds. :contentReference[oaicite:19]{index=19}
Planning Ideas to Reduce Maine Estate Tax
- Maine-only QTIP. Elect on a timely 706ME to defer Maine tax at first death; property becomes Maine elective property for the survivor. :contentReference[oaicite:20]{index=20}
- Credit shelter & charitable. Use federal deductions to lower the Maine-taxable starting point (state base ties to federal concepts). :contentReference[oaicite:21]{index=21}
- Nonresident situs management. Evaluate Maine real/tangible exposure; watch entity look-through and business-situs facts. :contentReference[oaicite:22]{index=22}
- Liquidity. Stage cash for the 9-month payment; payment extensions are separate and can accrue interest. :contentReference[oaicite:23]{index=23}
For step-by-step implementation, see the dedicated Maine Estate Tax Planning page or book a fixed-fee planning consult.
FAQs
Does Maine have an inheritance tax?
No. Maine has a state estate tax (paid by the estate), not an inheritance tax. See Title 36, Chapter 577 overview. :contentReference[oaicite:24]{index=24}
What is the Maine estate tax exclusion and rates for 2025?
Exclusion is $7,000,000; bands apply at 8%/10%/12% to the portion above the exclusion. Check the MRS page for the current year’s table. :contentReference[oaicite:25]{index=25}
How do nonresidents calculate Maine estate tax?
Compute as if resident, then multiply by the fraction: Maine-situs real & tangible ÷ adjusted federal gross estate (intangibles generally excluded). :contentReference[oaicite:26]{index=26}
When is the return due and can I extend?
Return due 9 months after death. Extension to file is separate from time to pay; payment extensions can accrue interest and may require security. :contentReference[oaicite:27]{index=27}
How do I clear the estate tax lien for a closing?
File 706ME (or submit 700-SOV if no return is required) and request a Certificate of Discharge from MRS; record it with the Registry of Deeds. :contentReference[oaicite:28]{index=28}
Need help filing or planning?
We assist with Maine probate coordination, federal Form 706, and Maine 706ME, including nonresident apportionment, entity look-through analysis, and lien discharge.
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