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WES MOORE, Governor Ch. 503
Chapter 503
(Senate Bill 277)
AN ACT concerning
Estates and Trusts – Venue for Administrative and Judicial Probate and
Application of Inheritance Tax
FOR the purpose of altering certain criteria for determining the venue for administrative
or judicial probate of decedents who were not domiciled in the State; providing that,
for purposes of the application of the Maryland inheritance tax, the situs of
intangible personal property is the domicile of the decedent; repealing a certain
exemption from the Maryland inheritance tax for personal property that passes from
a nonresident decedent; applying certain provisions of this Act retroactively; and
generally relating to administrative and judicial probate of decedents’ estates and
the Maryland inheritance tax.
BY repealing and reenacting, with amendments,
Article – Estates and Trusts
Section 5–103
Annotated Code of Maryland
(2022 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – General
Section 7–202 and 7–203
Annotated Code of Maryland
(2022 Replacement Volume and 2025 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Estates and Trusts
5–103.
(a) The venue for administrative or judicial probate is in:
(1) IF THE DECEDENT WAS DOMICILED IN THE STATE, the county in
which the decedent was domiciled at the time of death[, or, if];
(2) IF the decedent was not domiciled in [Maryland] THE STATE BUT WAS
DOMICILED IN THE UNITED STATES, the county in which the petitioner believes the
largest part in value of the property of the decedent in [Maryland] THE STATE was located
at the time of death; OR
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Ch. 503 2026 LAWS OF MARYLAND
(3) IF THE DECEDENT WAS NOT DOMICILED IN THE STATE BUT
PREVIOUSLY RESIDED IN THE STATE AND WAS NOT DOMICILED IN THE UNITED
STATES, THE COUNTY IN WHICH THE PETITIONER BELIEVES THE DECEDENT LAST
RESIDED IN THE STATE;
(4) IF THE DECEDENT WAS NOT DOMICILED IN THE STATE AND HAD
NOT PREVIOUSLY RESIDED IN THE STATE AND WAS NOT DOMICILED IN THE UNITED
STATES, THE COUNTY IN WHICH THE PETITIONER BELIEVES:
(I) THE LARGEST PART IN VALUE OF THE PROPERTY OF THE
DECEDENT IN THE STATE WAS LOCATED AT THE TIME OF DEATH;
(II) ANY CAUSE OF ACTION IN FAVOR OF THE DECEDENT AROSE;
(III) THE PERSONAL REPRESENTATIVE RESIDES OR HAS THE
PERSONAL REPRESENTATIVE’S PRINCIPAL PLACE OF BUSINESS;
(IV) ONE OR MORE INTERESTED PERSONS, LEGATEES, HEIRS,
OR BENEFICIARIES RESIDE; OR
(V) A FINANCIAL INSTITUTION THAT IS SUBJECT TO THE
JURISDICTION OF THE STATE WITH WHICH THE DECEDENT HAD A CONTRACTUAL
AGREEMENT MAY BE SUED; OR
(5) IF ITEMS (1) THROUGH (4) OF THIS SUBSECTION DO NOT APPLY,
THE COUNTY THAT THE REGISTER, ORPHANS’ COURT, OR OTHER GOVERNING
ENTITY HAS DETERMINED IS NECESSARY, REASONABLE, OR IN THE INTEREST OF
JUSTICE.
(b) (1) For the purpose of determining venue for the administration of the
estate of a decedent [who was not domiciled in Maryland at the time of death] DESCRIBED
UNDER SUBSECTION (A)(2) OR (3), (4), OR (5) OF THIS SECTION, the situs of REAL
PROPERTY AND tangible personal property is its location.
(2) (i) The situs of intangible personal property is the location of the
instrument evidencing a debt, obligation, stock, or chose in action.
(ii) If there is no instrument, the residence of the debtor governs.
(III) THE SITUS OF INTANGIBLE PERSONAL PROPERTY IS NOT
ALTERED BY THE OPENING OF AN ESTATE OF A DECEDENT DESCRIBED UNDER
SUBSECTION (A)(3) (A)(2), (3), (4), OR (5) OF THIS SECTION.
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WES MOORE, Governor Ch. 503
(3) The situs of an interest in property held in trust is any county where
the trustee may be sued.
(c) (1) Probate proceedings concerning a decedent may not be maintained in
more than one county.
(2) If a proceeding is commenced in more than one county, the court of the
county where proceedings are filed first has exclusive jurisdiction to determine venue.
(3) If proper venue is finally determined to be in another county, the
proceeding, including a will, petition, or any other paper filed, shall be transferred to the
proper court.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Tax – General
7–202.
(A) Except as provided in § 7–203 of this subtitle, a tax is imposed on the privilege
of receiving property that passes from a decedent and has a taxable situs in the State.
(B) FOR PURPOSES OF THIS SUBTITLE, THE SITUS OF INTANGIBLE
PERSONAL PROPERTY IS THE DOMICILE OF THE DECEDENT.
7–203.
(a) The inheritance tax does not apply to the receipt of an annuity or other
payment under a public or private employees’ pension or benefit plan if the annuity or other
payment is not taxable for federal estate tax purposes.
(b) (1) (i) In this subsection the following words have the meanings
indicated.
(ii) “Child” includes a stepchild or former stepchild.
(iii) “Parent” includes a stepparent or former stepparent.
(iv) “Surviving spouse” means a surviving spouse who has not
remarried.
(2) The inheritance tax does not apply to the receipt of property that passes
from a decedent to or for the use of:
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Ch. 503 2026 LAWS OF MARYLAND
(i) a grandparent of the decedent;
(ii) a parent of the decedent;
(iii) a spouse of the decedent;
(iv) a child of the decedent or a lineal descendant of a child of the
decedent;
(v) a spouse of a child of the decedent or a spouse of a lineal
descendant of a child of the decedent;
(vi) a surviving spouse of a deceased child of the decedent or of a
deceased lineal descendant of a child of the decedent who was married to the child or lineal
descendant of the child at the time of the child’s or lineal descendant’s death;
(vii) a brother or sister of the decedent; or
(viii) a corporation, partnership, or limited liability company if all of
its stockholders, partners, or members consist of individuals specified in items (i) through
(vii) of this paragraph.
(c) The inheritance tax does not apply to the receipt of the first $500 of property
that passes from a decedent under a will for the perpetual upkeep of graves.
(d) The inheritance tax does not apply to the receipt of the proceeds of a life
insurance policy payable to any beneficiary other than the estate of the insured.
(e) The inheritance tax does not apply to the receipt of property that passes from
a decedent to or for the use of an organization that is exempt from taxation under § 501(c)(3)
of the Internal Revenue Code or to which transfers are deductible under § 2055 of the
Internal Revenue Code if the organization:
(1) is incorporated under the laws of this State;
(2) conducts a substantial part of all its activities in this State or in the
District of Columbia; or
(3) has its principal place of business in a jurisdiction whose law:
(i) does not impose death taxes on the receipt of property that passes
from a decedent to a beneficiary of this State that is exempt from taxation under § 501(c)(3)
of the Internal Revenue Code or to which transfers are deductible under § 2055 of the
Internal Revenue Code; or
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WES MOORE, Governor Ch. 503
(ii) contains a reciprocal exemption from death taxes similar to the
exemption allowed in this subsection.
(f) [(1) Except as provided in paragraph (2) of this subsection, the inheritance
tax does not apply to the receipt of personal property that passes from a nonresident
decedent if, at the time of death, the decedent is a resident of a state or foreign country
whose law, on the date of the decedent’s death:
(i) does not impose death taxes on the receipt of similar personal
property of a resident of this State; or
(ii) contains a reciprocal exemption from death taxes similar to the
exemption allowed under this subsection.
(2) The exemption under paragraph (1) of this subsection does not include
the receipt of tangible personal property that has a taxable situs in this State.
(g)] The inheritance tax does not apply to the receipt of property that passes from
a decedent to any 1 person if the total value of the property does not exceed $1,000.
[(h)] (G) The inheritance tax does not apply to the receipt of property that is
distributed from an estate that qualifies under § 5–601 of the Estates and Trusts Article
for administration as a small estate.
[(i)] (H) The inheritance tax does not apply to the receipt of property that passes
from a decedent to the State, a county, or a municipal corporation of the State.
[(j)] (I) The inheritance tax does not apply to the receipt of property that is
income, including gains and losses, accrued on probate assets after the date of death of the
decedent.
[(k)] (J) (1) (i) In this subsection the following words have the meanings
indicated.
(ii) “Holocaust victim” means an individual who died or lost property
as a result of discriminatory laws, policies, or actions targeted against discrete groups of
individuals based on race, religion, ethnicity, sexual orientation, or national origin, whether
or not the individual was actually a member of any of those groups, or because the
individual assisted or allegedly assisted any of those groups, between January 1, 1929 and
December 31, 1945, in the country of Nazi Germany, areas occupied by Nazi Germany,
those European countries allied with Nazi Germany, areas occupied by those European
countries allied with Nazi Germany, or any other neutral European country or area in
Europe under the influence or threat of invasion by Nazi Germany or by any European
country allied with or occupied by Nazi Germany.
(iii) “Nazi Germany” means:
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Ch. 503 2026 LAWS OF MARYLAND
1. for the period from 1929 to 1933, the Republic of Germany,
commonly referred to as the Weimar Republic; and
2. for the period from 1933 through 1945, Deutsche Reich.
(2) The inheritance tax does not apply to the receipt of property that is:
(i) tangible or intangible property or compensation for tangible or
intangible property that was seized, misappropriated, or lost as a result of the actions or
policies of Nazi Germany toward a Holocaust victim; or
(ii) amounts received by a decedent as reparations or restitution for
the loss of liberty or damage to the health of the decedent because the decedent was:
1. a Holocaust victim; or
2. a spouse or descendant of a Holocaust victim.
(3) The exclusion under paragraph (2) of this subsection includes interest
on the proceeds receivable as insurance under policies issued by European insurance
companies prior to and during World War II to a Holocaust victim.
(4) The exclusion under paragraph (2) of this subsection does not include:
(i) assets acquired with the assets described in paragraph (2) of this
subsection; or
(ii) assets acquired with the proceeds from the sale of the assets
described in paragraph (2) of this subsection.
(5) The subtraction under paragraph (2)(i) of this subsection shall only
apply if the decedent:
(i) was the first recipient of the assets described in paragraph (2)(i)
of this subsection after their recovery; and
(ii) was:
1. a Holocaust victim; or
2. a spouse or descendant of a Holocaust victim.
[(l)] (K) (1) (i) In this subsection the following words have the meanings
indicated.
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WES MOORE, Governor Ch. 503
(ii) “Domestic partner” means an individual with whom another
individual has established a domestic partnership.
(iii) “Domestic partnership” means a relationship between two
individuals that is a domestic partnership:
1. under § 6–101(a) of the Health – General Article; or
2. registered in accordance with § 2–214 of the Estates and
Trusts Article.
(2) If the domestic partner of a decedent provides the affidavit described in
§ 6–101(b)(1) of the Health – General Article or any two of the proofs of domestic
partnership listed under § 6–101(b)(2) of the Health – General Article, the inheritance tax
does not apply to the receipt of an interest in a joint primary residence that:
(i) at the time of death was held in joint tenancy by the decedent
and the domestic partner; and
(ii) passes from the decedent to or for the use of the domestic partner.
(3) For a domestic partnership registered in accordance with § 2–214 of the
Estates and Trusts Article, the inheritance tax does not apply to the receipt of property
that passes from the decedent to or for the use of the domestic partner of the decedent.
[(m)] (L) (1) (i) In this subsection the following words have the meanings
indicated.
(ii) “Farming purposes” has the meaning stated in § 2032A(e)(5) of
the Internal Revenue Code.
(iii) “Perpetual conservation easement” means an easement on real
property that perpetually restricts the use of the real property to farming purposes.
(2) The inheritance tax does not apply to the receipt of real property that
is subject to a perpetual conservation easement and passes from a decedent to or for the
use of a niece or nephew of the decedent.
(3) (i) The inheritance tax shall be recaptured as provided in this
paragraph if the real property that is excluded under paragraph (2) of this subsection ceases
to be used for farming purposes.
(ii) The amount of the inheritance tax imposed under this paragraph
shall be the inheritance tax that would have been payable at the time of the decedent’s
death but for the provisions under paragraph (2) of this subsection.
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Ch. 503 2026 LAWS OF MARYLAND
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be
construed to apply retroactively and shall be applied to and interpreted to affect estates
opened on or after July 1, 2026.
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be
applicable to all decedents dying on or after July 1, 2026.
SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.
Approved by the Governor, May 12, 2026.
–8–Every fact on this page links to its source, starting with the official bill record.