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25. If the probate court requires security to ensure that the Maine estate tax is paid, is there another way of doing this other than obtaining a bond?

Yes, Maine Revenue Services (MRS) does allow estates to establish an escrow account. The account is held with a financial institution, but reserved in favor of satisfying the decedent’s Maine estate tax liability. The Personal Representative (PR) must send an agreement letter to the Director of the Maine Income/Estate Tax Division for a signature. The following must be included in the agreement:

• Total gross estate (list of assets) and the tax due to the State of Maine

• Maine-sourced portion of the gross estate

• PR information - full name, address, phone number and SSN

• Due date of the estate tax return

• That MRS will have priority, before any other individual or entity, over the funds in the escrow account

• PR must sign the agreement letter

• Name of the escrow account, account number, and the financial institution (account holder) must be stated

• Signature line for Director of Income/Estate Tax Division for acceptance of agreement

In some cases, the director may require that the escrow payments be made directly to the State of Maine, rather than via a financial institution.

Rev. 1/31/08

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