What if I inherited a house but don't want it in Montgomery County?

If you own a house in Montgomery County, MD and you are dealing with inherited property, this page covers what actually happens next — the local timeline, what it costs, and the options that stay open to you. Everything below is specific to Montgomery County and how sales are handled in MD, not generic national advice.

Direct Answer

If you have inherited a house in Montgomery County, Maryland, that you do not want, you have three primary options: you can legally disclaim the inheritance so it passes to the next heir, sell the property through the probate process, or donate it to a qualified non-profit. Because Maryland is one of the few states with both an inheritance tax and an estate tax, your decision will have significant financial implications based on your relationship to the deceased.

Key Details

Inheriting a home in Montgomery County comes with immediate responsibilities, even if you do not want the physical building. The most important thing to understand is that the property must go through a legal process called probate unless it was held in a specific type of trust or joint tenancy.

The Choice to Disclaim

If you absolutely do not want the property and do not want the hassle of selling it, you can file a "Disclaimer of Property." In Maryland, this means you refuse the gift entirely. When you do this, the law treats you as if you passed away before the person who left you the house. The property then goes to the next person in line according to the will or state law. You cannot choose who gets it in your place; you simply step out of the way.

Selling the House

Most people who "don't want" an inherited house actually mean they want the cash value instead of the real estate. To do this, the court-appointed Personal Representative (often called an executor in other states) must sell the house. In Montgomery County, the proceeds from the sale are used to pay off the deceased person's debts, and the remaining cash is distributed to the heirs.

Tax Considerations

One benefit of inheriting a house you plan to sell is the stepped-up basis. If the deceased bought the house in Bethesda in 1970 for $40,000 and it is worth $800,000 when they die, your "basis" for taxes is $800,000. If you sell it immediately for that price, you owe zero capital gains tax. However, Maryland may still levy an Inheritance Tax of 10% if you are not a close relative (like a child, spouse, or sibling).

MD-Specific Laws

Maryland's probate and inheritance laws are unique and governed by the Maryland Code, Estates and Trusts Article.

1. The Small Estate vs. Regular Estate

Maryland has a specific threshold for simplified probate.

• Small Estate: If the total value of the property in the deceased's name alone is $50,000 or less ($100,000 if the surviving spouse is the sole heir), you can use a simplified process. Given property values in Montgomery County, most inherited houses will exceed this limit and require a Regular Estate proceeding.
• Statute: MD Code, Estates and Trusts, § 5-601.

2. Maryland Inheritance Tax

Maryland is unique because it has an inheritance tax (based on who receives the money) and an estate tax (based on the total value of the assets).

• Exemptions: Spouses, children, grandchildren, parents, and siblings are generally exempt from inheritance tax.
• Tax Rate: Distant relatives (nieces, nephews, cousins) and friends must pay a 10% tax on the value of the property they receive.
• Statute: MD Code, Tax-General, § 7-204.

3. Disclaimer Rules

To legally refuse the house, you must follow the Maryland Uniform Disclaimer of Property Interests Act. You generally must file a written disclaimer within nine months of the person's death. The disclaimer must be filed with the Register of Wills in Montgomery County.

• Statute: MD Code, Estates and Trusts, § 9-202.

4. No Transfer-on-Death (TOD) Deeds

Unlike many other states, Maryland does not recognize Transfer-on-Death deeds for real estate. If the deceased did not put the house in a trust or name you as a "joint tenant with right of survivorship," the house must go through the probate court to change the title to your name or to a buyer's name.

Montgomery County Local Context

In Montgomery County, all inheritance matters are handled by the Register of Wills.

The Probate Office

• Location: 50 Maryland Avenue, North Tower, 3rd Floor, Rockville, MD 20850.
• Phone: 240-777-9600.
• Website: registers.maryland.gov

Local Ordinances and Costs

If the house is sitting empty while you decide what to do, you must comply with Montgomery County’s Chapter 26 of the County Code (Housing and Building Maintenance Standards). This means you are responsible for lawn maintenance, snow removal, and ensuring the property is secure. The county can fine the "estate" if the property becomes a nuisance.

Furthermore, if you choose to sell the house, Montgomery County has a Transfer Tax and a Recordation Tax. These are usually split between the buyer and the seller, but as an heir selling the property, you should budget for these closing costs.

What You Can Do Right Now

1. Do Not Move In or Take Control: If you intend to disclaim the property (refuse it), do not take any actions that suggest you have accepted it, such as moving in or paying the mortgage with your own money.
2. Locate the Will: Find the original will to see who the named Personal Representative is. Only this person has the legal authority to sign a listing agreement to sell the house.
3. Visit the Register of Wills: Go to the courthouse in Rockville to open an estate. You will need the death certificate and the original will. They provide brochures that explain the process in plain English.
4. Order a Professional Appraisal: Even if you don't want the house, you need to know its value on the date of death to establish the "stepped-up basis" for tax purposes.
5. Consult a Maryland Estates Lawyer: Because of Maryland's complex 10% inheritance tax for non-relatives, a one-hour consultation can save you thousands of dollars in penalties and incorrect filings.