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HB 98

Inheritance Tax - Beneficiaries of Limited Means - Installment Payments

2026 Regular Session Introduced by Jon Cardin

HB 98 permits Maryland inheritance tax beneficiaries with limited financial means to pay taxes through installments instead of lump-sum payments.

First Reading Ways and Means
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WeVote Research Nonpartisan
Bill Summary · HB 98

Legislative bill overview

HB 98 would allow beneficiaries of limited means to pay Maryland's inheritance tax through installment payments rather than in a lump sum. The bill aims to reduce financial hardship for lower-income heirs who may struggle to pay large tax bills immediately upon inheriting estates.

Why is this important

Inheritance taxes can create significant liquidity problems for beneficiaries, particularly those receiving modest inheritances or non-liquid assets like property or family businesses. Installment payment options could prevent forced asset sales or financial distress while still ensuring tax revenue collection for the state.

Potential points of contention

  • Definition of "limited means": Unclear eligibility thresholds may create disputes over who qualifies, administrative burden, or potential for abuse through misclassification
  • Tax revenue impact: Extended payment schedules could delay state revenue collection and raise questions about interest rates, penalties, and default consequences
  • Administrative complexity: Implementation requires new tracking systems, payment processing infrastructure, and enforcement mechanisms that increase government costs

Compiled from official sources — confirm details with the bill’s official record.

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