Philadelphia City Council Majority Leader Katherine Gilmore Richardson’s (At-Large) “Generational Wealth Preservation Bill,” Bill Number 260021, unanimously passed City Council today. The legislation removes a significant financial barrier that can make it difficult for families to pass down a home from one generation to the next, helping more Philadelphians keep property in their families and build generational wealth.
Previously, only homes that were fully paid off were exempt from the City’s Realty Transfer Tax (RTT). If a home had an outstanding mortgage, heirs were required to pay the RTT on the remaining debt before a new deed could be recorded, which could cost thousands of dollars. The Generational Wealth Preservation Bill amends the Philadelphia Code to clarify that heirs are not required to pay the RTT when inheriting a family home with an outstanding mortgage that cannot be paid off by the estate.
“Being able to keep a family home in the family helps to preserve and protect generational wealth,” said Majority Leader Gilmore Richardson. “This legislation makes sure that a tax bill is not standing between a grieving family and their ability to hold onto that foundation, particularly when they may already be navigating challenges like tangled titles or deed fraud. It is a common-sense change that makes the process more fair and equitable, while empowering families to build and maintain generational wealth.”
During the Committee on Finance hearing for the bill on March 3, 2026, councilmembers heard testimony in support of the legislation from legal service agencies, City of Philadelphia officials, and a community representative.
“When a loved one passes away, families should be focused on preserving their home — not figuring out how to pay an inflated tax bill. This bill keeps the cost of untangling titles down, helps families build generational wealth, and directly supports Mayor Parker’s H.O.M.E. Initiative to preserve homeownership in Philadelphia,” said James P. Leonard, Esquire, Commissioner of Records, City of Philadelphia.
“Community Legal Services is grateful to Council Majority Leader Katherine Gilmore Richardson for her ongoing commitment to resolving tangled titles and preserving homeownership opportunities for Philadelphia residents. Amending the transfer tax ordinance will alleviate a significant tax burden for families inheriting homes, and have immediate impact,” said Rachel Gallegos, Divisional Supervising Attorney at Community Legal Services.
“I’m so grateful to City Council for working to make the burden a little less when someone loses a loved one. You’re already overwhelmed when a loved one dies. An additional tax to then inherit a property adds to the burden and makes the loss of a loved one even more stressful,” said Michele Waller, a community representative and Community Legal Services client.
