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*hb0017*
HOUSE BILL 17
N2, Q7 (6lr1295)
ENROLLED BILL
— Judiciary/Judicial Proceedings —
Introduced by Delegate Cardin Delegates Cardin, Conaway, McComas, Simmons,
Williams, and Woods
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Estates and Trusts – Venue for Administrative and Judicial Probate and 2
Application of Inheritance Tax 3
FOR the purpose of altering certain criteria for determining the venue for administrative 4
or judicial probate of decedents who were not domiciled in the State; providing that, 5
for purposes of the application of the Marylan d inheritance tax, the situs of 6
intangible personal property is the domicile of the decedent; repealing a certain 7
exemption from the Maryland inheritance tax for personal property that passes from 8
a nonresident decedent; applying certain provisions of this Act retroactively; and 9
generally relating to administrative and judicial probate of decedents’ estates and 10
the Maryland inheritance tax. 11
BY repealing and reenacting, with amendments, 12
Article – Estates and Trusts 13
2 HOUSE BILL 17
Section 5–103 1
Annotated Code of Maryland 2
(2022 Replacement Volume and 2025 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Tax – General 5
Section 7–202 and 7–203 6
Annotated Code of Maryland 7
(2022 Replacement Volume and 2025 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Estates and Trusts 11
5–103. 12
(a) The venue for administrative or judicial probate is in: 13
(1) IF THE DECEDENT WAS D OMICILED IN THE STATE, the county in 14
which the decedent was domiciled at the time of death[, or, if]; 15
(2) IF the decedent was not domiciled in [Maryland] THE STATE BUT WAS 16
DOMICILED IN THE UNITED STATES, the county in which the petitioner believes the 17
largest part in value of the property of the decedent in [Maryland] THE STATE was located 18
at the time of death; OR 19
(3) IF THE DECEDENT WAS N OT DOMICILED IN THE STATE BUT 20
PREVIOUSLY RESIDED I N THE STATE AND WAS NOT DOMICILED IN THE UNITED 21
STATES, THE COUNTY IN WHICH THE PETITIONER BELIE VES THE DECEDENT LAST 22
RESIDED IN THE STATE; 23
(4) IF THE DECEDENT WAS N OT DOMICILED IN THE STATE AND HAD 24
NOT PREVIOUSLY RESIDED IN THE STATE AND WAS NOT DOMICILED IN THE UNITED 25
STATES, THE COUNTY IN WHICH THE PETITIONER BELIEVES: 26
(I) THE LARGEST PART IN V ALUE OF THE PROPERTY OF THE 27
DECEDENT IN THE STATE WAS LOCATED AT THE TIME OF DEATH; 28
(II) ANY CAUSE OF ACTION IN FAVOR OF THE DECEDENT AROSE; 29
(III) THE PERSONAL REPRESENTATIVE RESID ES OR HAS THE 30
PERSONAL REPRESENTATIVE’S PRINCIPAL PLACE OF BUSINESS; 31
HOUSE BILL 17 3
(IV) ONE OR MORE INTERESTE D PERSONS , LEGATEES, HEIRS, 1
OR BENEFICIARIES RESIDE; OR 2
(V) A FINANCIAL INSTITUTIO N THAT IS SUBJECT TO THE 3
JURISDICTION OF THE STATE WITH WHICH THE DECED ENT HAD A CONTRACTUA L 4
AGREEMENT MAY BE SUED; OR 5
(5) IF ITEMS (1) THROUGH (4) OF THIS SUBSECTION D O NOT APPLY, 6
THE COUNTY WHICH THAT THE REGISTER, ORPHANS’ COURT, OR OTHER GOVERNING 7
ENTITY HAS DETERMINE D IS NECESSARY , REASONABLE, OR IN THE INTEREST OF 8
JUSTICE. 9
(b) (1) For the purpose of determining venue for the administration of the 10
estate of a decedent [who was not domiciled in Maryland at the time of death] DESCRIBED 11
UNDER SUBSECTION (A)(2) OR (3), (4), OR (5) OF THIS SECTION , the situs of REAL 12
PROPERTY AND tangible personal property is its location. 13
(2) (i) The situs of intangible personal property is the location of the 14
instrument evidencing a debt, obligation, stock, or chose in action. 15
(ii) If there is no instrument, the residence of the debtor governs. 16
(III) THE SITUS OF INTANGIB LE PERSONAL PROPERTY IS NOT 17
ALTERED BY THE OPENI NG OF AN ESTATE OF A DECEDENT DESCRIBED U NDER 18
SUBSECTION (A)(3) (A)(2), (3), (4), OR (5) OF THIS SECTION. 19
(3) The situs of an interest in p roperty held in trust is any county where 20
the trustee may be sued. 21
(c) (1) Probate proceedings concerning a decedent may not be maintained in 22
more than one county. 23
(2) If a proceeding is commenced in more than one county, the court of the 24
county where proceedings are filed first has exclusive jurisdiction to determine venue. 25
(3) If proper venue is finally determined to be in another county, the 26
proceeding, including a will, petition, or any other paper filed, shall be transferred to the 27
proper court. 28
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 29
as follows: 30
Article – Tax – General 31
7–202. 32
4 HOUSE BILL 17
(A) Except as provided in § 7–203 of this subtitle, a tax is imposed on the privilege 1
of receiving property that passes from a decedent and has a taxable situs in the State. 2
(B) FOR PURPOSES OF THIS SUBTITLE, THE SITUS OF INTANGI BLE 3
PERSONAL PROPERTY IS THE DOMICILE OF THE DECEDENT. 4
7–203. 5
(a) The inheritance tax does not apply to the receipt of an annuity or other 6
payment under a public or private employees’ pension or benefit plan if the annuity or other 7
payment is not taxable for federal estate tax purposes. 8
(b) (1) (i) In this subsection the following words have the meanings 9
indicated. 10
(ii) “Child” includes a stepchild or former stepchild. 11
(iii) “Parent” includes a stepparent or former stepparent. 12
(iv) “Surviving spouse” means a surviving spouse who has not 13
remarried. 14
(2) The inheritance tax does not apply to the receipt of property that passes 15
from a decedent to or for the use of: 16
(i) a grandparent of the decedent; 17
(ii) a parent of the decedent; 18
(iii) a spouse of the decedent; 19
(iv) a child of the decedent or a lineal descendant of a child of the 20
decedent; 21
(v) a spouse of a child of the deceden t or a spouse of a lineal 22
descendant of a child of the decedent; 23
(vi) a surviving spouse of a deceased child of the decedent or of a 24
deceased lineal descendant of a child of the decedent who was married to the child or lineal 25
descendant of the child at the time of the child’s or lineal descendant’s death; 26
(vii) a brother or sister of the decedent; or 27
HOUSE BILL 17 5
(viii) a corporation, partnership, or limited liability company if all of 1
its stockholders, partners, or members consist of individuals specified in items (i) through 2
(vii) of this paragraph. 3
(c) The inheritance tax does not apply to the receipt of the first $500 of property 4
that passes from a decedent under a will for the perpetual upkeep of graves. 5
(d) The inheritance tax does not apply to the receipt of the proceeds of a life 6
insurance policy payable to any beneficiary other than the estate of the insured. 7
(e) The inheritance tax does not apply to the receipt of property that passes from 8
a decedent to or for the use of an organization that is exempt from taxation under § 501(c)(3) 9
of the Internal Revenue Code or to which transfers are deductible under § 2055 of the 10
Internal Revenue Code if the organization: 11
(1) is incorporated under the laws of this State; 12
(2) conducts a substantial par t of all its activities in this State or in the 13
District of Columbia; or 14
(3) has its principal place of business in a jurisdiction whose law: 15
(i) does not impose death taxes on the receipt of property that passes 16
from a decedent to a beneficiary of this State that is exempt from taxation under § 501(c)(3) 17
of the Internal Revenue Code or to which transfers are deductible under § 2055 of the 18
Internal Revenue Code; or 19
(ii) contains a reciprocal exemption from death taxes similar to the 20
exemption allowed in this subsection. 21
(f) [(1) Except as provided in paragraph (2) of this subsection, the inheritance 22
tax does not apply to the receipt of personal property that passes from a nonresident 23
decedent if, at the time of death, the decedent is a resident of a state or foreign country 24
whose law, on the date of the decedent’s death: 25
(i) does not impose death taxes on the receipt of similar personal 26
property of a resident of this State; or 27
(ii) contains a reciprocal exemption from death taxes similar to the 28
exemption allowed under this subsection. 29
(2) The exemption under paragraph (1) of this subsection does not include 30
the receipt of tangible personal property that has a taxable situs in this State. 31
(g)] The inheritance tax does not apply to the receipt of property that passes from 32
a decedent to any 1 person if the total value of the property does not exceed $1,000. 33
6 HOUSE BILL 17
[(h)] (G) The inheritance tax does not apply to the receipt of property that is 1
distributed from an estate that qualifies under § 5 –601 of the Estates and Trusts Article 2
for administration as a small estate. 3
[(i)] (H) The inheritance tax does not apply to the receipt of property that passes 4
from a decedent to the State, a county, or a municipal corporation of the State. 5
[(j)] (I) The inheritance tax does not apply to the receipt of property that is 6
income, including gains and losses, accrued on probate assets after the date of death of the 7
decedent. 8
[(k)] (J) (1) (i) In this subsection the following words have the meanings 9
indicated. 10
(ii) “Holocaust victim” means an individual who died or lost property 11
as a result of discriminatory laws, policies, or actions targeted against discrete groups of 12
individuals based on race, religion, ethnicity, sexual orientation, or national origin, whether 13
or not the individual was actually a member of any of those groups, or because the 14
individual assisted or allegedly assisted any of those groups, between January 1, 1929 and 15
December 31, 1945, in the country of Nazi Germany, areas occupied by N azi Germany, 16
those European countries allied with Nazi Germany, areas occupied by those European 17
countries allied with Nazi Germany, or any other neutral European country or area in 18
Europe under the influence or threat of invasion by Nazi Germany or by any European 19
country allied with or occupied by Nazi Germany. 20
(iii) “Nazi Germany” means: 21
1. for the period from 1929 to 1933, the Republic of Germany, 22
commonly referred to as the Weimar Republic; and 23
2. for the period from 1933 through 1945, Deutsche Reich. 24
(2) The inheritance tax does not apply to the receipt of property that is: 25
(i) tangible or intangible property or compensation for tangible or 26
intangible property that was seized, misappropriated, or lost as a result of the actions or 27
policies of Nazi Germany toward a Holocaust victim; or 28
(ii) amounts received by a decedent as reparations or restitution for 29
the loss of liberty or damage to the health of the decedent because the decedent was: 30
1. a Holocaust victim; or 31
2. a spouse or descendant of a Holocaust victim. 32
HOUSE BILL 17 7
(3) The exclusion under paragraph (2) of this subsection includes interest 1
on the proceeds receivable as insurance under policies issued by European insurance 2
companies prior to and during World War II to a Holocaust victim. 3
(4) The exclusion under paragraph (2) of this subsection does not include: 4
(i) assets acquired with the assets described in paragraph (2) of this 5
subsection; or 6
(ii) assets acquired with the proceeds from the sale of the assets 7
described in paragraph (2) of this subsection. 8
(5) The subtraction under paragraph (2)(i) of this subsection shall only 9
apply if the decedent: 10
(i) was the first recipient of the assets described in paragraph (2)(i) 11
of this subsection after their recovery; and 12
(ii) was: 13
1. a Holocaust victim; or 14
2. a spouse or descendant of a Holocaust victim. 15
[(l)] (K) (1) (i) In this subsection the following words have the meanings 16
indicated. 17
(ii) “Domestic partner” means an individual with wh om another 18
individual has established a domestic partnership. 19
(iii) “Domestic partnership” means a relationship between two 20
individuals that is a domestic partnership: 21
1. under § 6–101(a) of the Health – General Article; or 22
2. registered in accordance with § 2 –214 of the Estates and 23
Trusts Article. 24
(2) If the domestic partner of a decedent provides the affidavit described in 25
§ 6 –101(b)(1) of the Health – General Article or any two of the proofs of domestic 26
partnership listed under § 6–101(b)(2) of the Health – General Article, the inheritance tax 27
does not apply to the receipt of an interest in a joint primary residence that: 28
(i) at the time of death was held in joint tenancy by the decedent 29
and the domestic partner; and 30
(ii) passes from the decedent to or for the use of the domestic partner. 31
8 HOUSE BILL 17
(3) For a domestic partnership registered in accordance with § 2–214 of the 1
Estates and Trusts Article, the inheritance tax does not apply to the receipt of property 2
that passes from the decedent to or for the use of the domestic partner of the decedent. 3
[(m)] (L) (1) (i) In this subsection the following words have the meanings 4
indicated. 5
(ii) “Farming purposes” has the meaning stated in § 2032A(e)(5) of 6
the Internal Revenue Code. 7
(iii) “Perpetual conservation easement” means an easement on real 8
property that perpetually restricts the use of the real property to farming purposes. 9
(2) The inheritance tax does not apply to the receipt of real property that 10
is subject to a perpetual co nservation easement and passes from a decedent to or for the 11
use of a niece or nephew of the decedent. 12
(3) (i) The inheritance tax shall be recaptured as provided in this 13
paragraph if the real property that is excluded under paragraph (2) of this subsection ceases 14
to be used for farming purposes. 15
(ii) The amount of the inheritance tax imposed under this paragraph 16
shall be the inheritance tax that would have been payable at the time of the decedent’s 17
death but for the provisions under paragraph (2) of this subsection. 18
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be 19
construed to apply retroactively and shall be applied to and interpreted to affect estates 20
opened on or after July 1, 2026. 21
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 22
applicable to all decedents dying on or after July 1, 2026. 23
SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
1, 2026. 25