Starting in 2027, Maryland will fund help for heirs with inherited homes

The State Tax Sale Ombudsman must run a program with guidance, free legal help, and grants to help heirs settle estates and become the recorded owners of inherited homes. The program serves heirs or legatees entitled to inherit a deceased homeowner’s dwelling. The Ombudsman also sends information to heirs who may live in the deceased homeowner’s former home. An heir may qualify for free legal help or a grant for probate costs and other fees needed to transfer the home if the home is valued at $450,000 or less. The Ombudsman may set additional grant rules that prioritize heirs with low incomes, older heirs, and heirs with disabilities. The program can spend money only from its dedicated fund, and spending must follow the State budget. The Governor must include $250,000 from interest on overdue State property taxes in the annual budget bill; counties must collectively pay $500,000 each year from interest on overdue county property taxes. The program section takes effect July 1, 2027.

The Ombudsman must give counties the names and addresses of heirs who contact the office so the counties can include their homes on the list of properties withheld from tax sale. This applies to an heir who contacts the Ombudsman about an inherited dwelling. The program section takes effect July 1, 2027.

An eligible heir who is not listed as the home’s owner in county land records may receive the homeowners’ or homestead property tax credit. This applies to an heir entitled to inherit a deceased homeowner’s dwelling who is not shown as its owner in county land records. The heir must qualify under the credit’s homeowner and other rules, apply, submit an oath-backed statement of heirship, and attach the deceased homeowner’s death certificate. The credit may be granted for no more than three taxable years while the heir is not listed as the owner. After three years, the heir must be listed as the owner to receive the credit. These credit changes apply to taxable years beginning after June 30, 2026.