General information, not legal advice. This guide explains how the process generally works. It is not legal, tax or financial advice, and every estate is different. Talk to a licensed attorney about your situation.
Short answer: in Maryland, an estate is opened with the Register of Wills in the county (or Baltimore City) where the person lived. Once a personal representative is appointed, they can usually manage, sell or borrow against estate real estate, subject to the will and Maryland law. Heirs then choose between selling, repairing, renting or buying each other out. This guide explains each step and the local rules that affect the house.
Key points: each Maryland county has a Register of Wills and an Orphans' Court. Small estates are probate assets of $50,000 or less, or $100,000 if the surviving spouse is the sole heir. Maryland has an inheritance tax on some beneficiaries, with exemptions for close family. County rental licensing and lead rules affect what you can do with the house.
Who handles probate in Maryland?
Maryland probate is administered by the Register of Wills in each county and in Baltimore City. Most estates are handled administratively by the Register's office. When a dispute or a question needs a judge, it goes to the Orphans' Court, Maryland's probate court. In Montgomery, Harford and Howard counties, Circuit Court judges sit as the Orphans' Court; elsewhere, the Orphans' Court has its own judges.
Maryland law requires whoever has the original will to file it promptly with the Register of Wills where the person lived, even if no one plans to open an estate. The Register's offices publish forms and instructions, and staff can explain procedure, though they cannot give legal advice.
Small estate, regular estate or modified administration?
- Small estate: probate assets with a gross value of $50,000 or less, or $100,000 or less if the surviving spouse is the sole heir or legatee. For small estates opened on or after October 1, 2022, there is no required Register of Wills fee, and the process rarely involves a court.
- Regular estate: larger estates, which involve an inventory, notice to creditors and accounts or other reports.
- Modified administration: an option for some regular estates that reduces filings when the beneficiaries qualify and consent. The Register of Wills can tell you whether an estate is eligible.
Only assets in the decedent's name alone are probate assets. A house held jointly with a right of survivorship, or held in a trust, may pass outside probate, which changes who can sign.
Inheritance tax and estate tax
Maryland is one of the few states with an inheritance tax. It is generally 10% of the value passing to collateral beneficiaries, such as nieces, nephews, cousins and friends. Spouses, children and other lineal descendants, parents, and siblings are among the exempt beneficiaries, and no inheritance tax is collected on probate property in a small estate. Maryland also has a separate estate tax that applies only to larger estates. Ask the Register of Wills or a tax professional how either tax applies before you distribute sale proceeds.
Can the personal representative sell or borrow against the house?
Generally, yes. Maryland gives personal representatives broad powers to manage estate property, including selling it or borrowing against it, unless the will limits those powers. The title company will ask for the letters of administration and will confirm whether any heir needs to sign or consent. If the heirs already hold title outside probate, every owner usually signs.
When heirs disagree about selling, a court can order a partition. Maryland has updated its partition rules for inherited property in recent years, adding protections such as appraisal and buyout rights for co-owners. A Maryland estate attorney can explain the options.
County rules that affect an inherited house
What you can do with the house depends heavily on the county. A few examples from the counties where we lend:
- Prince George's County: single-family rentals need a license from the Department of Permitting, Inspections and Enforcement (DPIE). See our Prince George's County guide.
- Montgomery County: permits run through the Department of Permitting Services, and county rent stabilization limits annual rent increases on many rentals. See our Montgomery County guide.
- Baltimore County: rentals must be licensed through the Department of Permits, Approvals and Inspections before a tenant moves in. See our Baltimore County guide.
- Anne Arundel County: buildings with two or more rental units need a Multiple Dwelling License, and waterfront parcels can fall in the Chesapeake Bay Critical Area. See our Anne Arundel County guide.
Statewide, rentals built before 1978 must meet the Maryland Department of the Environment's lead-risk reduction rules. And every county runs its own tax sale for unpaid property taxes, so check the tax balance on an inherited house early.
Sell, repair, rent or buy out?
- Sell as-is when heirs need cash quickly or the repairs are too large.
- Repair and sell when the after-repair value comfortably covers the repair, carrying and selling costs.
- Rent when one heir wants to hold the property and it can pass the county's rental license and lead requirements.
- Buy out siblings when one heir keeps the house and the others are paid their share of the equity after payoffs.
How can heirs finance repairs, taxes or a buyout?
A probate loan is a short-term, business-purpose loan secured by the inherited property and repaid from a sale or a long-term refinance. RevitaLending lends in Prince George's, Montgomery, Charles, Anne Arundel and Baltimore counties (not Baltimore City) from $50,000 to $2M with no minimum FICO, sized on the property and the exit, subject to underwriting. Heirs and estates use it to pay off tax liens and the existing mortgage, fund repairs before selling or renting, or buy out other heirs. The property must be non-owner-occupied investment property. If you plan to keep it as a rental, a DSCR rental loan can refinance the short-term loan later.
What to have ready: the address, the death certificate, the will and letters of administration, mortgage and tax payoffs, any county notices, a repair estimate and the plan.
Frequently asked questions
Where do I open an estate in Maryland?
With the Register of Wills in the county, or Baltimore City, where the person lived. The Orphans' Court handles matters that need a judge.
What is a small estate in Maryland?
Probate assets with a gross value of $50,000 or less, or $100,000 or less if the surviving spouse is the sole heir or legatee.
Do I owe Maryland inheritance tax on my parent's house?
Children and other lineal descendants are exempt from Maryland inheritance tax, as are spouses, parents and siblings. The tax generally applies at 10% to collateral beneficiaries. Confirm with the Register of Wills.
Can a personal representative take a loan on an inherited Maryland house?
Generally yes, unless the will limits that power. The title company will confirm the authority. A probate loan can fund repairs, taxes or a sibling buyout, subject to underwriting.
Official sources
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Apply for a probate loan→ See probate loans→Not legal or tax advice. This guide is general information, not legal, tax or financial advice and not a loan offer. Laws, thresholds and procedures change; confirm them with the official sources above and with a licensed attorney or tax professional. All loans are subject to underwriting and title approval, and rates and terms can change. This is not a commitment to lend.