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Maine Estate Tax Cases

Maine Estate Tax — Cases & Authorities

Last updated: 18 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)

Maine Estate Tax — Cases & Authorities

Curated, authority-first “case notes” for recurring Maine estate tax issues. Each note cites the controlling statute, rule, or official guidance so you can verify positions before filing Form 706ME or recording a lien release.

Scope. Maine’s modern estate tax lives in Title 36, Chapter 577 (after 2012). Earlier Chapter 575 still matters for pre-2013 deaths. Where Maine law is silent, MRS generally follows federal estate tax principles—see the MRS guidance documents linked below.

Case Note 1 — Framework & Rate Schedule (Post-2012)

Data: Maine Legislature; 36 M.R.S. §4103 (resident tax) and §4102 (definitions, incl. “Maine elective property”).

Issue in brief: Whether an estate owes Maine tax hinges on the Maine taxable estate and the Maine exclusion amount. The schedule applies by bands; $0 tax at or below the exclusion.

Holding/Rule: §4103 imposes tax on resident estates; if the Maine taxable estate is ≤ the Maine exclusion amount, tax is $0; otherwise, apply the statutory brackets. The definitions section controls adjustments (QTIP/elective property, one-year gift add-back).

Comment: Confirm the correct year’s exclusion and brackets before modeling. Maine’s exclusion and bands are set in statute and periodically amended by session law, with administrative guidance each year.

Case Note 2 — Separate Maine-Only QTIP & Elective Property

Data: MRS Rule Ch. 603 §.09 (Qualified Terminable Interest & Maine Elective Property); 706ME Instructions (see 2021/current); MRS guidance memo 2023.

Issue in brief: May an estate elect a Maine-only QTIP when no federal QTIP is made, and how is it later included?

Holding/Rule: A separate state QTIP is permitted; the allowable deduction is limited to the difference between the federal applicable exclusion (excluding DSUE) and the Maine exclusion. On the survivor’s death, the revalued property is treated as Maine elective property and included in the survivor’s Maine taxable estate.

Comment: Elections are made on Form 706ME; attach the detailed QTIP asset list. Track basis and valuation changes for the inclusion at the second death.

Case Note 3 — Nonresident Situs & Apportionment

Data: 36 M.R.S. §4104 (nonresident estates); MRS Estate Tax page 706ME overview.

Issue in brief: What portion of a nonresident’s estate is taxed by Maine?

Holding/Rule: Compute Maine tax as if resident and multiply by the fraction: Maine-situs real & tangible personal property ÷ adjusted federal gross estate. Intangibles (stock, bank) are generally outside the Maine base for nonresidents unless tied to Maine by specific provisions.

Comment: Keep strong evidence of physical location at death (or at gift within one year). Entity interests are typically intangibles; avoid facts that could create Maine business situs.

Case Note 4 — Filing Deadlines, Extensions & Installments

Data: 36 M.R.S. §4107 (returns & due date); §4108 (extensions to pay); Rule Ch. 603 April 2024 (implementation).

Issue in brief: How long do you have to file and pay, and can you extend?

Holding/Rule: Return due 9 months after death. Maine may grant extensions of time to pay for up to one year at a time (aggregate up to 10 years, or longer if a §4109 arrangement applies); interest accrues. Separate rules apply to extend time to file.

Comment: Attach federal 4768 (if applicable) and follow Rule 603 for written payment-extension requests; Maine can require security.

Case Note 5 — Automatic Lien & Discharge (Real & Tangible Property)

Data: 36 M.R.S. §4112 (lien for taxes); Rule Ch. 603 §.12 (liens & releases); MRS Certificate of Discharge forms REV 11/18/older; MRS Estate Tax FAQ.

Issue in brief: When does the lien attach, and how do you release it to convey property?

Holding/Rule: An automatic lien attaches at death to Maine property; it is not attached to survivorship property passing to a spouse, and is released upon sale for value by the PR/trustee/surviving joint tenant, by recorded discharge from MRS, or automatically after 10 years. To clear title, file Form 706ME (or Statement 700-SOV if no return is required) and record the MRS Certificate of Discharge with the Registry of Deeds.

Comment: Title standards emphasize life estate/retained-interest transfers and one-year gift add-backs—document thoroughly before requesting discharge.

Practice tip. If no Maine return is required but a title company needs lien clearance, submit Statement 700-SOV with the discharge request to MRS per Rule 603.

References

  1. 36 M.R.S. §4103 — Tax on estate of resident (current text & PDF). Maine Legislature. :contentReference[oaicite:0]{index=0}
  2. 36 M.R.S. §4102 — Definitions (incl. “Maine elective property”). Maine Legislature. :contentReference[oaicite:1]{index=1}
  3. 36 M.R.S. §4104 — Tax on estate of nonresident. Maine Legislature. :contentReference[oaicite:2]{index=2}
  4. 36 M.R.S. §4107 — Returns; due date (overview links). FindLaw summary. :contentReference[oaicite:3]{index=3}
  5. 36 M.R.S. §4108 — Extension of due date for payment of tax. Maine Legislature / Justia. :contentReference[oaicite:4]{index=4}
  6. 36 M.R.S. §4112 — Lien for taxes. Maine Legislature / Justia / Legal summaries. :contentReference[oaicite:5]{index=5}
  7. MRS Rule Ch. 603 — Maine Estate Tax After 2012 (April 27, 2024). :contentReference[oaicite:6]{index=6}
  8. MRS Rule Ch. 603 §.09 — Qualified Terminable Interest & Maine Elective Property. :contentReference[oaicite:7]{index=7}
  9. MRS Rule Ch. 603 §.12 — Liens & Lien Releases. :contentReference[oaicite:8]{index=8}
  10. Maine Revenue Services — Estate Tax (706ME) overview page. :contentReference[oaicite:9]{index=9}
  11. 706ME Instructions (current posting). Maine Revenue Services (PDF). :contentReference[oaicite:10]{index=10}
  12. 706ME Instructions (2021) — Maine QTIP mechanics. Maine Revenue Services (PDF). :contentReference[oaicite:11]{index=11}
  13. MRS Estate Tax Guidance (QTIP/elective property reminders). Maine Revenue Services (PDF). :contentReference[oaicite:12]{index=12}
  14. Certificate of Discharge of Estate Tax Lien (REV 11/18). Maine Revenue Services (PDF). :contentReference[oaicite:13]{index=13}
  15. Certificate of Discharge of Estate Tax Lien (prior version). Maine Revenue Services (PDF). :contentReference[oaicite:14]{index=14}
  16. Estate Tax FAQ — Lien & discharge process. Maine Revenue Services. :contentReference[oaicite:15]{index=15}
  17. State Death Tax charts noting separate state QTIP (context). ACTEC. :contentReference[oaicite:16]{index=16}