MD SB704

Qualified recipients of inherited agricultural property may transfer legal ownership to a limited liability company (LLC) without triggering estate tax recapture

Transfer to an LLC avoids recapture only if the LLC is owned exclusively by qualified recipients and the property continues to be used for farming purposes for at least 10 years after the decedent's death

Current law allows up to $5,000,000 of qualified agricultural property to be excluded from the gross estate when calculating Maryland estate tax

Agricultural property values exceeding $5,000,000 are taxed at a reduced rate of 5%, compared to the standard 16% rate on other estate assets

Effective July 1, 2026, applicable to decedents dying after June 30, 2026