Maryland’s Ombudsman helps heirs settle inherited home ownership

The State Tax Sale Ombudsman must run a program to help heirs settle ownership of inherited homes. An heir is a person entitled to inherit a deceased homeowner’s dwelling. The Ombudsman must send information to heirs who may live in the home and share the names and addresses of heirs who contact the office with the county. The Ombudsman must provide legal-service grants and grants to heirs, but the fund is the program’s only funding source and spending must follow the state budget.

The state and counties must contribute to a fund for the heirs program. The counties’ shares are based on each county’s portion of real property accounts statewide. The Governor must include $250,000 each year from interest on overdue state property taxes in the budget. Counties together must pay $500,000 each year from interest on overdue county property taxes. The fund may pay only program expenses, and spending must follow the state budget. The contributions are required for each fiscal year.

An eligible heir who is not listed as the dwelling’s owner in county land records may receive the homeowners’ or homestead property tax credit for up to three taxable years. The heir must be entitled to inherit a deceased homeowner’s dwelling and must not yet be listed as its owner in county land records. The heir must meet the credit’s homeowner and other eligibility rules, apply, attest under oath that they are entitled to inherit the dwelling, and attach the deceased homeowner’s death certificate. After three taxable years, the heir may receive the credit only if listed as the dwelling’s recorded owner. The credit changes apply to taxable years beginning after June 30, 2026. After three taxable years, the heir must be listed as the recorded owner to keep receiving the credit.