Maine Estate Tax Nonresident Guide
Last updated: 11 Nov 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Maine Estate Tax — Nonresident Guide
For estates of decedents domiciled outside Maine that own Maine-situs assets. This guide covers who must file, what’s taxable, how apportionment limits the tax to Maine property, Form 706ME, deadlines & extensions, payment, and lien releases (certificate of discharge).
Do you need to file as a nonresident?
What counts as Maine-situs property?
| Asset type | Taxed by Maine? | Notes |
|---|---|---|
| Real property located in Maine | Yes | Homes, camps, timber/farmland, commercial. Appraisals recommended. |
| Tangible personal property kept in Maine | Yes | Boats, vehicles, equipment, artwork physically in Maine. |
| Intangibles (stock, bonds, bank/brokerage) | Generally no | Usually sourced to domicile; may be drawn in only with a Maine business situs. |
| Entity interests (LLC/partnership shares) | Generally no | Treated as intangibles; avoid Maine-centered management/records that suggest business situs. |
How Maine limits tax to the Maine portion
- Step 1: Compute Maine estate tax as if the decedent were a Maine resident (using the federal framework as adjusted by Maine law).
- Step 2: Multiply by a fraction: Maine-situs real & tangible property ÷ federal gross estate (with Maine adjustments). The result is the Maine tax due.
- Deductions: Administration expenses and debts should be supportable and, for nonresidents, properly related to Maine-reported property.
Bottom line: precise asset location and valuation drive the fraction—and therefore the tax.
Deadlines, extensions & payment
| Item | Timing | Notes |
|---|---|---|
| Form 706ME due | 9 months after death | File even if no federal Form 706 is required when Maine computation shows tax due. |
| Extension to file | Up to 6 months (typical) | Attach federal Form 4768 approval or follow Maine procedures; filing extension does not extend time to pay. |
| Extension to pay | By written request | May be granted for reasonable cause; interest may accrue; security can be required. |
| How to pay | By the 9-month date | Electronic or check per Maine Revenue Services instructions; keep proof of remittance. |
Automatic lien & certificate of discharge
- Maine estate tax creates an automatic lien on Maine real and tangible property at death.
- To sell or refinance, file the return (or provide qualifying statements if no return is required) and request a Certificate of Discharge from Maine Revenue Services, then record it with the Registry of Deeds.
- Spousal survivorship and bona fide sales for value can qualify for release paths; confirm title company requirements early.
Core forms & attachments (nonresident focus)
Maine forms
- Form 706ME — Maine Estate Tax Return (with schedules).
- Payment/extension — As instructed by Maine Revenue Services (filing vs. payment are separate processes).
- Certificate of Discharge request — to clear the lien for closings/refinances.
Federal attachments
- Form 706 pages/schedules (or pro-forma if no federal filing), Forms 712 (life insurance).
- Deeds, appraisals, proof of Maine location; will/trusts; letters of authority.
Follow the Maine instructions for the full attachment checklist.
Quick examples
Example — Portland condo to children
Nonresident decedent owns a Portland condo and out-of-state investments. The Maine return includes the condo and Maine-related deductions; non-Maine accounts are excluded via apportionment.
Example — Boat stored in Maine to nephew
A boat kept in Maine passes to a nephew. The boat is Maine-situs tangible property and is included in the Maine computation even if most assets are outside Maine.
Nonresident filing checklist
Documents
- Death certificate; letters of appointment (domicile state and any Maine ancillary).
- List of Maine-situs assets with appraisals and location evidence.
- Federal schedules (706/pro-forma), will/trusts, beneficiary designations.
Computations & timing
- Compute the Maine portion on Form 706ME and exclude non-Maine assets via apportionment.
- Target the 9-month payment date; if needed, request an extension to file (and separately, to pay).
- Plan lien-release steps if a sale/closing is imminent.
FAQs — Nonresident estates
Are nonresidents taxed on brokerage accounts?
Generally no. Intangibles (e.g., brokerage, stock, cash) of a nonresident are usually not Maine-situs unless they acquire a Maine business situs.
Do I have to file if there’s no Maine property?
Usually not. If the decedent had no Maine-situs assets, a Maine estate tax return is not generally required. Verify titles and locations carefully.
What is the 2025 exemption/threshold?
The Maine computation references a threshold/exemption framework coordinated with federal concepts. Always confirm the current Maine threshold before filing.
How do lien releases work?
Request a Certificate of Discharge from Maine Revenue Services after filing or submitting qualifying documentation; record it with the Registry of Deeds to clear title.
What if a federal estate return isn’t required?
You may still need a Maine filing if the Maine computation shows tax due. Use federal-style schedules as pro-forma support and follow the Maine attachment checklist.
Need help with a Maine nonresident estate?
We assist with apportionment, 706/706ME coordination, Maine lien releases, and closings.
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