September has a way of forcing decisions. The summer is over, schools are back in session, and the days are getting shorter. Oh, and the house that a parent left behind is still sitting there with the mail piling up. If you have recently inherited property in Maryland or in Montgomery County, Annapolis, or Howard County Maryland, the fall is the right season to stop waiting and start moving before the snow and ice begins to say "hello".
Here is what the first ninety days should look like.
Confirm if the property goes into probate.
Estate planning attorney Montgomery County MD Most people don't know this but before you do anything, find out whether the real estate goes through probate at all. Property held in a trust, property titled as joint tenants with right of survivorship, and property covered by a Maryland life estate deed generally pass outside of probate and therefore is not needed. Property titled in the deceased person's name alone almost always passes through the Register of Wills in the county where the person lived. The answer changes your timeline, your paperwork, and who has the legal authority to sign anything. Pull the deed before you assume as this process can take some time.
Protect the property while the legal work catches up
Conservatorship attorney Maryland An empty Maryland house in October is a liability. Homeowners insurance carriers often treat a vacant property differently than an occupied one, and a claim can be denied if the carrier was never told the owner died. Here is something you can do...call the insurance company early and ask specifically about vacancy coverage. At the same time, keep the utilities on so the pipes do not freeze in January, arrange for the lawn and gutters, and make sure the mortgage, property taxes, and any HOA or condo fees stay current. Montgomery County and Prince George's County both move quickly on tax liens, and a lien is a much bigger problem than a late fee.
Understand the tax picture
This can get a bit complicated which is why having real estate attorney working with you during this process is important. Maryland is one of the few states with both an estate tax and an inheritance tax. Children, grandchildren, parents, siblings, and spouses are generally exempt from the inheritance tax, but nieces, nephews, cousins, and friends are not. There is also a federal question worth asking. Inherited property usually receives a new cost basis equal to the fair market value on the date of death, which can eliminate decades of capital gain if the property is sold soon after. Getting a date of death appraisal now, while comparable sales from this year are fresh, is far easier than reconstructing that number three years from now. Who knew...right? Again, this can be overwhelming, but a real estate attorney can assist.
Talk to the other heirs before you talk to a realtor
Most inherited property disputes in Maryland do not start with the law. They start with one sibling who wants to sell, one who wants to rent it out, and one who wants to move in. When several people inherit the same house, each of them owns an undivided interest in the whole thing, which means no one can act alone. If the group cannot agree, Maryland law allows any owner to file a partition action, and the court can order the property sold. That outcome is slow, public, and expensive. A written agreement among the heirs, drafted early, is almost always the cheaper path.
Get the deed right
It is important to know that once the estate is ready to distribute the property, the transfer has to be documented correctly and recorded with the land records. A deed prepared without attention to Maryland transfer and recordation tax exemptions can create a tax bill that never needed to exist. This is why a real estate attorney is needed. Procedures can be complex and difficult to navigate. You are stresses as it is...going through this process can be even more stressful.
One way of looking at it is...Inheriting property is part legal process, part family negotiation, and part maintenance project. The Law Office of Brian Gormley helps Maryland families handle all three, from the first probate filing to the recorded deed. If you are holding a set of keys and a stack of unopened mail, this is a good month to get answers. We are here for you.
