Glad you posted Indiana Flyer. The way it was worded above was that there is a sole surviver and other siblings.
Kathy, here's intestate distribution for MD.
Maryland Intestate Succession Laws
If any part of a Maryland decedent's estate is not effectively disposed of by will, the intestate share will be distributed in the following order and manner:
1. Surviving spouse. A surviving spouse is generally first in line to get any assets from the intestate estate. However, the amount a surviving spouse is entitled to varies as follows:
If there is a surviving minor child, the surviving spouse gets one-half of the entire intestate estate (with the rest going to the decedent's minor child or children).
If there is no surviving minor child, but there is surviving issue (defined as every living lineal descendant of the decedent except a lineal descendant of a living lineal descendant), the surviving spouse's share is the first $15,000 plus one-half of the remainder of the intestate estate.
If there is no surviving issue but a surviving parent, the surviving spouse's share is the first $15,000 plus one-half of the remainder of the intestate estate.
If there is no surviving issue or parent, the surviving spouse gets the whole estate.
2. Heirs other than surviving spouse. Any part of the intestate estate not passing to the surviving spouse as indicated above, or the entire intestate estate if there is no surviving spouse, passes as follows to:
Decedent's surviving issue, by representation. In such case, the property is divided into as many equal shares as there are children of the decedent who survive the decedent and children of the decedent who did not survive the decedent but of whom issue did survive the decedent. Each child of the decedent who did survive the decedent receives one share. Each child of decedent who did not survive also gets a share, except that the share is split between the nonsurviving child's children. The same pattern is repeated for other children that do not survive until all shares are determined.
Decedent's parent or parents equally.
Issue of decedent's parents, by representation (as described above).
Decedent's grandparents, with a one-half portion going to the paternal grandparents and the other half going to the maternal grandparents. If both of the grandparents on either side are deceased, their share goes to their issue by representation (as explained above).
Decedent's great-grandparents and their issue, by representation.
If there is no surviving blood relative entitled to inherit, decedent's intestate estate is divided into as many equal shares as there are stepchildren of the decedent who survive the decedent. Surviving issue of a deceased stepchild split a share by representation (as outlined earlier).
3. State of Maryland. If there is no taker under any of the above provisions, the intestate estate passes as a last resort to the state of Maryland. More specifically, if the decedent was a recipient of long-term care benefits under the Maryland Medical Assistance Program at the time of death, any available assets go to the Department of Health and Mental Hygiene. Otherwise, assets will go to the Board of Education.
http://www.finance.cch.com/pops/c50s10d190_MD.asp
Based on the intestate laws, Kathy, your step-daughter is the sole heir. Do you suppose the grandma is being a bit greedy here? The more the house is sold for, the more granny gets paid in executor fees. There's got to be some equity in this house! Granny and the aunts/uncles of your step daughter may believe that they have some rights to inheritance too.
What's just not crystal clear here is the POA. If step daughter did not sign a POA prior to her brain injury and is mentally incompetent, then your husband does not have a vaild POA. If your husband is your daughter's legal guardian or had the POA prior to the brain injury, there are two different legal avenues to pursue this.
The first is with no valid POA, which means your step daughter needs the court to appoint her a guardian ad litem (court attorney) and your husband needs to petiton/file to be his daughter's legal guardian.
Second, with a valid POA that includes legal matters, your husband may be able to represent his daughter in court over this. What I strongly suggest is that your husband consult with an attorney. There are plenty that provide free initial consultations.