To sell an inherited house in Maryland, someone has to have legal authority to sign the deed. Usually that’s the personal representative named by the Register of Wills, who can sell before the estate is closed. Siblings and children don’t pay Maryland’s inheritance tax, and the house usually gets a new tax basis at its value on the date of death. That often means little or no capital gains tax if it sells soon after.
When you’re ready to look at numbers, our free home value request works for inherited houses too, and you can read how we handle these sales on our seller page. We’re patient with estates. Most estates aren’t in a hurry, and nobody should be pushed.
This is general information, not legal or tax advice. Please talk to a Maryland estate attorney and a CPA about your situation.
Who can sign: the personal representative
When someone dies owning a house in their name alone, the house goes into their estate. The Register of Wills in the county where they lived appoints a personal representative (often the person named as executor in the will) and issues Letters of Administration. According to the Register of Wills’ administration of estates guide, a personal representative must be appointed before any assets are disposed of (checked October 2026).
Once appointed, the personal representative has broad power. Estates and Trusts § 7-401 lets them sell, mortgage or lease estate property without asking the court, “except as validly limited by the will or by an order of court.” The settlement company will want a certified copy of the Letters before closing.
Not every inherited house goes through probate. If the house was titled jointly with a right of survivorship, or held in a trust, it may pass outside the estate. Bring the deed to your first meeting with the attorney, and they’ll tell you which path applies.
Small estate vs regular estate
Maryland has two main tracks, and the value of what’s in the estate decides which one you’re on. From the Register of Wills guide:
| Small estate | Regular estate | |
|---|---|---|
| Value of assets subject to administration | $50,000 or less ($100,000 if the spouse is the sole heir or legatee) | Over those amounts |
| Bond | Applies in some estates | Required by law |
| Inventory and accounts | Simpler filings | Inventory within 3 months of appointment, first account within 9 months |
| Probate fee | None | Scaled to the estate’s value |
The value counts the house at fair market value minus the mortgage or other secured debt. So a house worth $300,000 with a $260,000 mortgage counts as $40,000 of equity.
The regular estate track also has a streamlined option, Modified Administration, for estates where the heirs are the personal representative or close family exempt from inheritance tax. It has to be elected within three months of appointment.
One timeline note: creditors have until 6 months after the date of death, or 2 months after the personal representative mails them notice if that comes first, to file claims (Estates and Trusts § 8-103). Ask your attorney whether to hold sale proceeds in the estate account until that period runs out.
Maryland inheritance tax and estate tax basics
Maryland has both, and they’re different.
Inheritance tax is a 10% tax on property passing to people who aren’t exempt. Per the Register of Wills guide (checked October 2026), these are exempt:
- Spouse or registered domestic partner
- Children and their descendants, including stepchildren
- Parents and grandparents, including stepparents
- Brothers and sisters of the person who died
- Spouses of children and descendants
- Certain charities and government bodies
- Property administered in a small estate
Nieces, nephews, cousins, friends and unmarried partners who aren’t registered domestic partners generally pay the 10%. The Register of Wills assesses it, and it’s usually paid out of the estate before distribution.
Estate tax only applies to large estates. For anyone who died on or after January 1, 2019, the Maryland exemption is $5,000,000 (Tax-General § 7-309), so most estates never deal with it.
Step-up in basis
This is the tax rule that saves heirs the most. The IRS says in Publication 551 that the basis of inherited property is generally its fair market value on the date of death (or an alternate valuation date if the personal representative elects one).
In plain terms: if your mother bought the house for $90,000 in 1985 and it was worth $380,000 when she died, your starting point is $380,000. If the estate sells it for $385,000 a few months later, the taxable gain is roughly $5,000 less selling costs, not $295,000.
That’s why a date-of-death appraisal matters. Ask the attorney whether to get one. For the rest of the seller tax picture, including withholding when the seller lives out of state, see our guide to taxes when selling a house in Maryland.
Clearing out and the house’s condition
Most inherited houses need some work, and almost all of them need clearing out. A few things to know:
- You may not need a full disclosure. Maryland’s seller disclosure law, Real Property § 10-702, exempts a transfer by a fiduciary in the course of administering a decedent’s estate, as listed on the state’s disclosure form. Your attorney will confirm what the buyer gets.
- Selling as-is is common. Our as-is guide explains how it works.
- Keep the house insured and secured. Tell the insurance company the owner has died, and ask whether the policy still covers the house while it’s empty. Keep the heat on in winter so pipes don’t freeze.
- Don’t throw out paperwork. Tax bills, the deed, permits, warranties and old surveys help the sale.
Should you fix it up first? Sometimes. If paint, cleaning and a few repairs would open the house to buyers with regular mortgages, that can be worth it. If it needs a roof, a kitchen and new systems, an as-is sale is usually simpler for an estate. We’ll show you both values, as-is and after work, so the heirs can decide together.
If a tenant or relative lives there
A tenant. The lease doesn’t end when the landlord dies. The personal representative steps in as landlord, collects rent and handles the deposit. Maryland’s tenant right of first refusal law exempts transfers by a fiduciary in an estate, but the lease itself still binds the buyer. Our post on selling a house with tenants in Maryland covers leases, deposits and showing notice.
A relative. This is the harder one. Sometimes an adult child or other relative has been living in the house, often as the caregiver. The personal representative has to treat all heirs fairly, which can mean charging rent, setting a move-out date or letting that heir buy out the others. These conversations go better with the attorney in the room, early.
Timeline
Every estate is different, but the order of operations usually looks like this:
- Find the will and the deed. File the will with the Register of Wills in the county where the person lived.
- Open the estate. The Register appoints the personal representative and issues Letters of Administration.
- Secure and insure the house. Change locks if needed, keep utilities on and update the insurance.
- Get a value. A date-of-death appraisal for tax purposes, and a market value for listing.
- Decide as a family: sell as-is, fix and sell, rent, or one heir buys out the others.
- Clear out and list. Most estates can list once the personal representative is appointed.
- Settle. The settlement company pays off any mortgage and liens, and the net proceeds go to the estate account.
- Wait out claims, pay any inheritance tax, distribute. The attorney files the accounts and closes the estate.
Bottom line
You can usually sell an inherited Maryland house once a personal representative is appointed, without waiting for the estate to close. Close family members don’t pay the inheritance tax, the estate tax only reaches estates over $5 million, and the step-up in basis keeps capital gains small on a quick sale. Get an estate attorney involved early, especially if heirs disagree or someone lives in the house. When the family’s ready, ask us for a value and we’ll take it from there at your pace.
Sources
- Register of Wills for Maryland, Administration of Estates guide (2023 edition), checked October 2026
- Maryland Code, Estates and Trusts § 7-401 (personal representative powers), checked October 2026
- Maryland Code, Estates and Trusts § 8-103 (creditor claims), checked October 2026
- Maryland Code, Tax-General § 7-309 (estate tax exemption), checked October 2026
- IRS, Publication 551, Basis of Assets, checked October 2026
- Maryland Real Estate Commission, Residential Property Disclosure and Disclaimer Statement (revised September 2026), checked October 2026