Inheriting real estate can be both a blessing and a burden. When multiple heirs inherit a family home, vacation property, or parcel of land together, what begins as a shared legacy can quickly become a source of tension. Differences in financial goals, emotional attachments, and legal understanding often lead to conflict that can strain relationships and delay estate resolution.
For families in Maryland, and especially in Anne Arundel County, understanding how jointly inherited property works is key to preventing costly disputes. Whether you’re an executor, beneficiary, or family member hoping to preserve harmony, knowing your options, and getting legal guidance early, can make all the difference.
Understanding What It Means to Inherit Property Jointly
When someone passes away and leaves property to more than one person, those individuals generally become co-owners or tenants in common. This means that each heir owns a share of the property.
For example, if three siblings inherit a house equally, each owns one-third. Each heir’s share is distinct and can be sold, transferred, or inherited by their own heirs. However, because the property itself is undivided, no one heir can claim a specific physical portion (such as the kitchen, the basement, or a particular acre of land).
This arrangement works smoothly when all parties agree on how to manage the property. But disagreements over selling, renting, or maintaining it are common.
Common Conflicts Between Co-Heirs
Even close-knit families can face serious disputes when it comes to jointly inherited real estate. Common points of conflict include:
- One heir wants to sell, others want to keep it.
For example, one sibling may need the money from a sale while another feels emotionally attached to the property. - Disagreements over property use.
Vacation homes, farmland, or rental properties can cause friction if not all heirs agree on who can use the property and when. - Unequal financial contributions.
If one heir pays property taxes, repairs, or maintenance while others do not, resentment can grow. - Inheritance from blended families.
Stepchildren, second spouses, or relatives from different branches of a family can have differing views about what’s “fair.”
Without clear communication or a legal framework, these issues can escalate into formal legal actions, including partition lawsuits or probate disputes.
Legal Ownership Structures in Maryland
In Maryland, property can pass to multiple heirs in a few different ways, depending on how it was titled before the owner’s death:
- Tenancy in Common: The most common arrangement for inherited property. Each heir owns a percentage interest that can be sold or passed to their own heirs.
- Joint Tenancy with Right of Survivorship: Each co-owner has equal rights, and if one dies, their share automatically transfers to the surviving owners.
- Tenancy by the Entirety: This is a special form of joint ownership for married couples only and cannot apply to multiple heirs after death.
Understanding which ownership structure applies to your situation is critical. It affects your ability to sell, transfer, or buy out another heir’s interest.
Probate and Real Estate in Maryland
If the deceased did not create a revocable living trust or otherwise avoid probate, inherited property typically passes through the Maryland probate process. The personal representative (executor) is responsible for managing the estate, paying debts, and distributing assets according to the will or Maryland intestacy law.
In some cases, the executor may need to sell the property to pay debts or to divide proceeds among heirs. If the will directs that heirs share the property instead, they become co-owners upon completion of probate.
What Happens When Heirs Can’t Agree?
When heirs cannot agree on what to do with a jointly inherited property, Maryland law provides several options:
1. Buyout Agreement
If one or more heirs want to keep the property, they can buy out the interests of those who wish to sell. This requires an appraisal to determine fair market value and a written agreement documenting the transfer.
Buyouts are often the cleanest solution, preserving family property while compensating those who prefer cash.
2. Sell and Divide the Proceeds
If no one can afford a buyout, the property can be sold and the profits divided according to ownership shares. This can be done voluntarily or, if necessary, through a court-ordered partition sale.
3. Partition Action
If one heir refuses to cooperate with a voluntary sale or buyout, another heir may file a partition action in a Maryland court. The court will either physically divide the property (partition in kind) or, more commonly, order it sold and distribute the proceeds.
Partition actions are time-consuming and expensive. They can permanently damage family relationships. Legal mediation or negotiation should always be attempted first.
4. Mediation and Family Settlement Agreements
Before resorting to court, Maryland families can use mediation to reach a mutual agreement. A neutral mediator helps heirs communicate and create a binding family settlement agreement outlining how the property will be managed, sold, or divided.
Tax Implications of Inheriting Property in Maryland
Inheriting real estate involves several tax considerations:
- Maryland Inheritance Tax:
Direct heirs (children, spouses, parents, siblings) are typically exempt from inheritance tax. More distant relatives or unrelated beneficiaries may owe up to 10%. - Capital Gains Tax:
Heirs generally receive a step-up in basis, meaning the property’s value is adjusted to its fair market value at the decedent’s death. This can significantly reduce capital gains if the property is later sold. - Property Taxes:
Co-owners must continue to pay property taxes after inheritance. Failure to do so can result in tax liens or foreclosure.
Because each case is different, consulting a Maryland estate attorney or tax professional can help ensure compliance and minimize tax liabilities.
Strategies to Prevent Disputes Before They Start
While not every disagreement can be avoided, careful planning and proactive communication can go a long way toward preserving family peace. Some key strategies include:
1. Create a Clear Estate Plan
For property owners, the best way to prevent future disputes is through clear estate planning. A will or trust should specify:
- Who inherits the property
- Whether the property should be sold or kept
- How maintenance and taxes will be handled
- Procedures for resolving disputes
An estate planning attorney can help draft language that reflects your intentions and complies with Maryland law.
2. Set Up a Trust
A revocable living trust or real estate trust can allow smoother transitions and centralized management. The trustee can control decisions about upkeep, sale, and distribution, eliminating the need for multiple heirs to agree on every detail.
3. Use Co-Ownership Agreements
When heirs already co-own property, a co-ownership agreement can set ground rules for management and use. This legal document can outline:
- Payment responsibilities for taxes, mortgage, and maintenance
- Rules for renting or selling the property
- How to handle buyouts or new ownership changes
- Dispute resolution procedures
Co-ownership agreements can help families avoid misunderstandings and keep relationships intact.
4. Work with an Estate Attorney Early
When emotions run high, having a neutral legal advisor is invaluable. An experienced Maryland estate attorney can:
- Explain each heir’s rights and responsibilities
- Draft or review ownership and sale agreements
- Facilitate negotiations or mediation
- Represent you in probate or partition proceedings
- File and manage necessary court documents accurately and on time
- Coordinate with financial advisors and real estate professionals to ensure fair valuation and division of assets
- Identify and resolve title defects, tax liens, or boundary disputes that may complicate inheritance
Even if things seem amicable now, getting legal guidance can prevent larger problems later.
Special Considerations in Anne Arundel County
In Anne Arundel County, disputes over inherited property often involve waterfront homes, farmland, or older family estates that have been passed down for generations. These properties may carry additional complexities such as riparian rights, zoning issues, or historic preservation regulations.
Local experience matters. A law firm familiar with Anne Arundel County’s property laws, courts, and real estate market can help you:
- Obtain accurate appraisals
- Resolve title issues
- Understand local tax assessments
- Manage estate sales effectively
Whether you’re in Annapolis, Severna Park, Pasadena, or Crofton, having a local attorney ensures that your family’s interests are fully protected under Maryland law.
When to Seek Legal Help
If you’re facing any of the following issues, it’s time to consult a lawyer:
- An heir refuses to cooperate with selling or maintaining the property
- Disputes have escalated to threats of legal action
- You need to understand your rights as a co-owner
- You suspect the estate was mishandled during probate
- You want to set up agreements to prevent conflict
Early legal advice can prevent costly litigation and preserve valuable family assets.
Contact Blackford & Flohr
At Blackford & Flohr, we help families throughout Anne Arundel County and Maryland navigate the complexities of inherited real estate. Our experienced estate and property attorneys can guide you through every step, whether you’re drafting a will, administering an estate, or resolving a dispute among heirs.
We believe in protecting both your financial interests and your family’s peace of mind.
Contact us today to schedule a consultation and learn how we can help you resolve or prevent conflicts over inherited property.
Call Blackford & Flohr at (410) 647-6677.
