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*sb0277*
SENATE BILL 277
N2, Q7 6lr1281
CF HB 17
By: Senator West
Introduced and read first time: January 19, 2026
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 20, 2026
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 Maryland inheritance tax, the situs of 6
intangible personal p roperty 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 adminis trative 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
Section 5–103 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Tax – General 18
Section 7–202 and 7–203 19
Annotated Code of Maryland 20
(2022 Replacement Volume and 2025 Supplement) 21
2 SENATE BILL 277
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Estates and Trusts 3
5–103. 4
(a) The venue for administrative or judicial probate is in: 5
(1) IF THE DECEDENT WAS D OMICILED IN THE STATE, the county in 6
which the decedent was domiciled at the time of death[, or, if]; 7
(2) IF the decedent was not domiciled in [Maryland] THE STATE BUT WAS 8
DOMICILED IN THE UNITED STATES, the county in which the petitioner believes the 9
largest part in value of the property of the decedent in [Maryland] THE STATE was located 10
at the time of death; OR 11
(3) IF THE DECEDENT WAS N OT DOMICILED IN THE STATE BUT 12
PREVIOUSLY RESIDED I N THE STATE AND WAS NOT DOM ICILED IN THE UNITED 13
STATES, THE COUNTY IN WHICH THE PETITIONER BELIE VES THE DECEDENT LAST 14
RESIDED IN THE STATE; 15
(4) IF THE DECEDENT WAS N OT DOMICILED IN THE STATE AND HAD 16
NOT PREVIOUSLY RESIDED IN THE STATE AND WAS NOT DOMICILED IN THE UNITED 17
STATES, THE COUNTY IN WHICH THE PETITIONER BELIEVES: 18
(I) THE LARGEST PART IN V ALUE OF THE PROPERTY OF THE 19
DECEDENT IN THE STATE WAS LOCATED AT THE TIME OF DEATH; 20
(II) ANY CAUSE OF ACTION IN FAVOR OF THE DECEDENT AROSE; 21
(III) THE PERSONAL REPRESEN TATIVE RESIDES OR HA S THE 22
PERSONAL REPRESENTATIVE’S PRINCIPAL PLACE OF BUSINESS; 23
(IV) ONE OR MORE INTERESTE D PERSONS , LEGATEES, HEIRS, 24
OR BENEFICIARIES RESIDE; OR 25
(V) A FINANCIAL INSTITUTIO N THAT IS SUBJECT TO THE 26
JURISDICTION OF THE STATE WITH WHICH THE DECEDENT HAD A CONTR ACTUAL 27
AGREEMENT MAY BE SUED; OR 28
(5) IF ITEMS (1) THROUGH (4) OF THIS SUBSECTION D O NOT APPLY, 29
THE COUNTY THAT THE REGISTER, ORPHANS’ COURT, OR OTHER GOVERNING 30
SENATE BILL 277 3
ENTITY HAS DETERMINE D IS NECESSARY , REASONABLE, OR IN THE INTEREST O F 1
JUSTICE. 2
(b) (1) For the purpose of determining venue for the administration of the 3
estate of a decedent [who was not domiciled in Maryland at the time of death] DESCRIBED 4
UNDER SUBSECTION (A)(2) OR (3), (4), OR (5) OF THIS SECTION , the situs of REAL 5
PROPERTY AND tangible personal property is its location. 6
(2) (i) The situs of intangible personal property is the location of the 7
instrument evidencing a debt, obligation, stock, or chose in action. 8
(ii) If there is no instrument, the residence of the debtor governs. 9
(III) THE SITUS OF INTANGIB LE PERSONAL PROPERTY IS NOT 10
ALTERED BY THE OPENI NG OF AN ESTATE OF A DECEDENT DESCRIBED UNDER 11
SUBSECTION (A)(3) (A)(2), (3), (4), OR (5) OF THIS SECTION. 12
(3) The situs of an interest in property held in trust is any county where 13
the trustee may be sued. 14
(c) (1) Probate proceedings concerning a decedent may not be mai ntained in 15
more than one county. 16
(2) If a proceeding is commenced in more than one county, the court of the 17
county where proceedings are filed first has exclusive jurisdiction to determine venue. 18
(3) If proper venue is finally determined to be in ano ther county, the 19
proceeding, including a will, petition, or any other paper filed, shall be transferred to the 20
proper court. 21
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 22
as follows: 23
Article – Tax – General 24
7–202. 25
(A) Except as provided in § 7–203 of this subtitle, a tax is imposed on the privilege 26
of receiving property that passes from a decedent and has a taxable situs in the State. 27
(B) FOR PURPOSES OF THIS SUBTITLE, THE SITUS OF INTANGI BLE 28
PERSONAL PROPERTY IS THE DOMICILE OF THE DECEDENT. 29
7–203. 30
4 SENATE BILL 277
(a) The inheritance tax does not apply to the receipt of an annuity or other 1
payment under a public or private employees’ pension or benefit plan if the annuity or other 2
payment is not taxable for federal estate tax purposes. 3
(b) (1) (i) In this subsection the following words have the meanings 4
indicated. 5
(ii) “Child” includes a stepchild or former stepchild. 6
(iii) “Parent” includes a stepparent or former stepparent. 7
(iv) “Surviving spouse” means a surviving spouse wh o has not 8
remarried. 9
(2) The inheritance tax does not apply to the receipt of property that passes 10
from a decedent to or for the use of: 11
(i) a grandparent of the decedent; 12
(ii) a parent of the decedent; 13
(iii) a spouse of the decedent; 14
(iv) a child of the decedent or a lineal descendant of a child of the 15
decedent; 16
(v) a spouse of a child of the decedent or a spouse of a lineal 17
descendant of a child of the decedent; 18
(vi) a surviving spouse of a deceased child of the decedent or of a 19
deceased lineal descendant of a child of the decedent who was married to the child or lineal 20
descendant of the child at the time of the child’s or lineal descendant’s death; 21
(vii) a brother or sister of the decedent; or 22
(viii) a corporation, partn ership, or limited liability company if all of 23
its stockholders, partners, or members consist of individuals specified in items (i) through 24
(vii) of this paragraph. 25
(c) The inheritance tax does not apply to the receipt of the first $500 of property 26
that passes from a decedent under a will for the perpetual upkeep of graves. 27
(d) The inheritance tax does not apply to the receipt of the proceeds of a life 28
insurance policy payable to any beneficiary other than the estate of the insured. 29
(e) The inheritance tax does not apply to the receipt of property that passes from 30
a decedent to or for the use of an organization that is exempt from taxation under § 501(c)(3) 31
SENATE BILL 277 5
of the Internal Revenue Code or to which transfers are deductible under § 2055 of the 1
Internal Revenue Code if the organization: 2
(1) is incorporated under the laws of this State; 3
(2) conducts a substantial part of all its activities in this State or in the 4
District of Columbia; or 5
(3) has its principal place of business in a jurisdiction whose law: 6
(i) does not impose death taxes on the receipt of property that passes 7
from a decedent to a beneficiary of this State that is exempt from taxation under § 501(c)(3) 8
of the Internal Revenue Code or to which transfers are deductible under § 2055 of the 9
Internal Revenue Code; or 10
(ii) contains a reciprocal exemption from death taxes similar to the 11
exemption allowed in this subsection. 12
(f) [(1) Except as provided in paragraph (2) of this subsection, the inheritance 13
tax does not apply to the rec eipt of personal property that passes from a nonresident 14
decedent if, at the time of death, the decedent is a resident of a state or foreign country 15
whose law, on the date of the decedent’s death: 16
(i) does not impose death taxes on the receipt of simil ar personal 17
property of a resident of this State; or 18
(ii) contains a reciprocal exemption from death taxes similar to the 19
exemption allowed under this subsection. 20
(2) The exemption under paragraph (1) of this subsection does not include 21
the receipt of tangible personal property that has a taxable situs in this State. 22
(g)] The inheritance tax does not apply to the receipt of property that passes from 23
a decedent to any 1 person if the total value of the property does not exceed $1,000. 24
[(h)] (G) The inheritance tax does not apply to the receipt of property that is 25
distributed from an estate that qualifies under § 5 –601 of the Estates and Trusts Article 26
for administration as a small estate. 27
[(i)] (H) The inheritance tax does not apply to the receipt of property that passes 28
from a decedent to the State, a county, or a municipal corporation of the State. 29
[(j)] (I) The inheritance tax does not apply to the receipt of property that is 30
income, including gains and losses, accrued on probate assets after the date of death of the 31
decedent. 32
6 SENATE BILL 277
[(k)] (J) (1) (i) In this subsection the following words have the meanings 1
indicated. 2
(ii) “Holocaust victim” means an individual who died or lost property 3
as a result of discriminatory laws, policies, or actions t argeted against discrete groups of 4
individuals based on race, religion, ethnicity, sexual orientation, or national origin, whether 5
or not the individual was actually a member of any of those groups, or because the 6
individual assisted or allegedly assisted any of those groups, between January 1, 1929 and 7
December 31, 1945, in the country of Nazi Germany, areas occupied by Nazi Germany, 8
those European countries allied with Nazi Germany, areas occupied by those European 9
countries allied with Nazi Germany, or a ny other neutral European country or area in 10
Europe under the influence or threat of invasion by Nazi Germany or by any European 11
country allied with or occupied by Nazi Germany. 12
(iii) “Nazi Germany” means: 13
1. for the period from 1929 to 1933, the Republic of Germany, 14
commonly referred to as the Weimar Republic; and 15
2. for the period from 1933 through 1945, Deutsche Reich. 16
(2) The inheritance tax does not apply to the receipt of property that is: 17
(i) tangible or intangible property or co mpensation for tangible or 18
intangible property that was seized, misappropriated, or lost as a result of the actions or 19
policies of Nazi Germany toward a Holocaust victim; or 20
(ii) amounts received by a decedent as reparations or restitution for 21
the loss of liberty or damage to the health of the decedent because the decedent was: 22
1. a Holocaust victim; or 23
2. a spouse or descendant of a Holocaust victim. 24
(3) The exclusion under paragraph (2) of this subsection includes interest 25
on the proceeds receivable as insurance under policies issued by European insurance 26
companies prior to and during World War II to a Holocaust victim. 27
(4) The exclusion under paragraph (2) of this subsection does not include: 28
(i) assets acquired with the assets described in paragraph (2) of this 29
subsection; or 30
(ii) assets acquired with the proceeds from the sale of the assets 31
described in paragraph (2) of this subsection. 32
SENATE BILL 277 7
(5) The subtraction under paragraph (2)(i) of this subsection shall only 1
apply if the decedent: 2
(i) was the first recipient of the assets described in paragraph (2)(i) 3
of this subsection after their recovery; and 4
(ii) was: 5
1. a Holocaust victim; or 6
2. a spouse or descendant of a Holocaust victim. 7
[(l)] (K) (1) (i) In this subsection the following words have the meanings 8
indicated. 9
(ii) “Domestic partner” means an individual with whom another 10
individual has established a domestic partnership. 11
(iii) “Domestic partnership” means a relationship between two 12
individuals that is a domestic partnership: 13
1. under § 6–101(a) of the Health – General Article; or 14
2. registered in accordance with § 2 –214 of the Estates and 15
Trusts Article. 16
(2) If the domestic partner of a decedent provides the affidavit described in 17
§ 6–101(b)(1) of the Health – General Article or any two of the proofs of domestic 18
partnership listed under § 6–101(b)(2) of the Health – General Article, the inheritance tax 19
does not apply to the receipt of an interest in a joint primary residence that: 20
(i) at the time of death was held in joint tenancy by the decedent 21
and the domestic partner; and 22
(ii) passes from the decedent to or for the use of the domestic partner. 23
(3) For a domestic partnership registered in accordance with § 2–214 of the 24
Estates and Trusts Article, the inheritance tax does not apply to the receipt of property 25
that passes from the decedent to or for the use of the domestic partner of the decedent. 26
[(m)] (L) (1) (i) In this subsection the following words have the meanings 27
indicated. 28
(ii) “Farming purposes” has the meaning stated in § 2032A(e)(5) of 29
the Internal Revenue Code. 30
8 SENATE BILL 277
(iii) “Perpetual conservation easement” means an easement on real 1
property that perpetually restricts the use of the real property to farming purposes. 2
(2) The inheritance tax does not apply to the receipt of real property that 3
is subject to a perpetual conservation easement and passes from a decedent to or for the 4
use of a niece or nephew of the decedent. 5
(3) (i) The inheritance tax shall b e recaptured as provided in this 6
paragraph if the real property that is excluded under paragraph (2) of this subsection ceases 7
to be used for farming purposes. 8
(ii) The amount of the inheritance tax imposed under this paragraph 9
shall be the inheritance tax that would have been payable at the time of the decedent’s 10
death but for the provisions under paragraph (2) of this subsection. 11
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be 12
construed to apply retroactively and shall be a pplied to and interpreted to affect estates 13
opened on or after July 1, 2026. 14
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 15
applicable to all decedents dying on or after July 1, 2026. 16
SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
1, 2026. 18
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.