Ever since the concept of estimation algebra was first introduced by Brockett and Mitter independently, it has been playing a crucial role in the investigation of finite-dimensional nonlinear filters. Researchers have classified all finite-dimensional estimation algebras of maximal rank with state space less than or equal to three. In this paper we study the structure of quadratic forms in a finite-dimensional estimation algebra. In particular, we prove that if the estimation algebra is finite dimensional and of maximal rank, then the Ω=(∂f j /∂x i −∂f i /∂x j )matrix, wheref denotes the drift term, is a linear matrix in the sense that all the entries in Ω are degree one polynomials. This theorem plays a fundamental role in the classification of finite-dimensional estimation algebra of maximal rank.