Maryland Probate Law Update
August 19, 2026 · Marc Cormier
Maryland's New Transfer-on-Death Deed Law: What Homeowners Need to Know Before October 1, 2026
Marc Cormier is not an attorney. This article provides general real estate information and is not legal, tax or estate-planning advice. Consult a qualified Maryland attorney before making decisions about estate planning or probate matters.
Maryland homeowners are about to get a new estate-planning option that could make transferring a home after death much easier.
Beginning October 1, 2026, Maryland will recognize Transfer-on-Death deeds, commonly called TOD deeds.
The new Maryland Transfer-on-Death Deed Act was enacted through House Bill 738 and Senate Bill 651 and signed into law by Governor Wes Moore on May 26, 2026.
For many Maryland homeowners, this could be a major change.
A properly prepared and recorded TOD deed can allow real estate to pass directly to a named beneficiary after the owner's death without that property having to pass through the normal probate transfer process.
But there are rules and there are some important catches homeowners should understand.
What Is a Transfer-on-Death Deed?
A Transfer-on-Death deed allows a Maryland property owner to name one or more people who will receive the property when the owner dies.
Think of it somewhat like naming a beneficiary on a bank account.
The biggest difference between a TOD deed and simply adding your child or another person to your existing deed is when ownership changes.
With a TOD deed, the beneficiary does not become an owner while you are alive.
You remain the owner.
The beneficiary's interest does not take effect until your death.
You Keep Control of Your House
This may be the most important part of the new law.
Recording a TOD deed does not give the beneficiary ownership rights while you are alive.
You can generally still:
- Sell the property
- Mortgage or refinance it
- Rent it
- Transfer it
- Change the beneficiary
- Revoke the TOD deed
The beneficiary does not need to accept the deed during your lifetime and does not receive a current legal or equitable ownership interest simply because the TOD deed was recorded.
That makes a TOD deed very different from giving someone part ownership of your home today.
Does a TOD Deed Avoid Probate in Maryland?
For the real estate covered by a valid TOD deed, that is one of its main purposes.
Upon the owner's death, the owner's interest in the property can transfer to the named beneficiary outside the normal probate transfer process.
That does not mean the homeowner's entire estate automatically avoids probate.
Bank accounts, vehicles, investments, personal property and other assets still have to be considered separately.
A TOD deed is a tool for transferring qualifying real property. It is not a replacement for an entire estate plan.
For a detailed explanation of how the Maryland probate process works, see our Maryland probate timeline guide.
The Beneficiary Doesn't Get a Debt-Free House
This is another important point.
A TOD deed does not wipe out a mortgage, lien or other obligation tied to the property.
The beneficiary generally receives the property subject to the mortgages, liens, contracts, encumbrances and other interests affecting the property at the owner's death.
So if Mom owes $250,000 on the mortgage when she dies, recording a TOD deed does not magically eliminate that $250,000 debt.
The deed changes how ownership can transfer. It does not erase obligations attached to the property.
The Owner Can Change Their Mind
Maryland's law makes TOD deeds revocable.
An owner can revoke a previously recorded TOD deed during their lifetime, but there is an important detail:
Simply changing your will is not enough.
The law provides specific methods for revoking a TOD deed, including recording a qualifying revocation instrument or another qualifying deed.
In other words, once a TOD deed has been recorded, homeowners should not assume that writing something different in a later will automatically cancels it.
Proper recording matters.
The Deed Must Be Recorded Before Death
This is critical.
A TOD deed must meet Maryland's requirements and be recorded in the land records of the county where the property is located before the owner dies.
Signing a form and putting it in a desk drawer isn't enough.
The statutory form also requires proper execution and acknowledgment/notarization and contains specific instructions concerning witnesses and the notary.
Maryland's law even includes model forms for creating and revoking TOD deeds.
For homeowners with multiple owners, multiple beneficiaries, unusual ownership arrangements or more complicated estate plans, getting legal advice before recording the deed makes sense.
What Happens If There Are Multiple Beneficiaries?
This is an area where homeowners should be especially careful.
Maryland permits a TOD deed to name multiple beneficiaries and specify how they will own the property.
If the deed does not state the form of ownership, Maryland's law provides that the beneficiaries generally receive the property as joint tenants with rights of survivorship.
That can have significant consequences.
If you plan to leave a property to several children or other beneficiaries, don't assume that simply putting everyone's names on the form will produce the result you intended.
What If a Beneficiary Dies First?
Maryland's law also addresses this.
Generally, if a named beneficiary dies before the property owner, that beneficiary's interest can lapse.
A TOD deed may name alternate beneficiaries.
That is another reason homeowners should think beyond simply asking:
"Who gets my house?"
You should also consider:
"What happens if that person dies before I do?"
There May Be Valuable Tax Benefits
Maryland's new law also creates specific tax exemptions.
Under the law, a TOD deed involving the transferor's primary residence or secondary residence is exempt from Maryland recordation tax.
The legislation also connects that exemption to Maryland's transfer-tax provisions, including an exemption from county transfer tax when the TOD deed qualifies for the recordation-tax exemption.
That can be an important benefit.
But don't interpret this to mean that every possible tax associated with inheriting or later selling real estate disappears.
Income-tax basis, capital gains, estate taxes and other tax issues are separate questions that should be discussed with a qualified tax or estate-planning professional. See our guide on Maryland estate and inheritance tax for a detailed breakdown of what applies.
Can You Create a TOD Deed Before October 1, 2026?
Here is an unusual part of the Maryland law.
The legislation states that it applies to a TOD deed made before, on, or after October 1, 2026, provided the transferor dies on or after October 1, 2026.
That does not mean homeowners should rush out and create their own deed before the law becomes effective.
The deed still needs to satisfy the statutory requirements, recording requirements and other applicable Maryland law.
If you're considering doing this before October 1, speak with a Maryland estate-planning or real estate attorney first.
Is a TOD Deed Better Than a Will or Trust?
Not necessarily.
It depends on the homeowner.
For some Maryland homeowners, a TOD deed could be a simple and powerful tool.
For others, a trust, will, life estate or another estate-planning strategy may make more sense.
Potential issues include:
- Multiple beneficiaries
- Blended families
- A beneficiary receiving public benefits
- Minor beneficiaries
- Existing mortgages or liens
- Creditor problems
- Family disagreements
- Long-term-care planning
- A homeowner becoming incapacitated
- Plans to sell or downsize before death
The cheapest or simplest-looking option isn't always the best option.
What This Means for Maryland Families
As someone who works with Maryland probate properties and families dealing with inherited homes, I see what happens after someone dies without a clear plan for the real estate.
Families can suddenly be dealing with a house, mortgage, personal belongings, repairs, insurance, maintenance and a probate estate all while dealing with the loss of a family member.
Maryland's new TOD deed law gives homeowners one more way to plan ahead.
For the right homeowner, it could simplify what happens to the house after death.
But the important words are "for the right homeowner."
Don't download a form, sign it and assume everything is solved.
Understand what happens to the property, who receives it, what happens if that beneficiary dies first, what happens to existing debts and how the TOD deed fits with the rest of your estate plan.
Maryland-Specific Details You Should Know
County recording requirements: Each Maryland county has its own Register of Wills and land records office. The TOD deed must be recorded in the county where the property is located. For properties in Montgomery County, record with the Montgomery County Land Records office. For properties in Prince George's County, use the Prince George's County land records office.
Statutory form requirements: Maryland's law provides a specific model form for TOD deeds. The form must include:
- The name of the transferor (property owner)
- The legal description of the property
- The name(s) of the beneficiary(ies)
- A statement that the transfer is effective at death
- Proper execution with witnesses and notarization
How title is held matters: If the property is held as tenants by the entirety (married couples), a TOD deed may not be appropriate without careful planning. Consult an attorney about how your current title affects the TOD deed. For more on the common pitfalls when inheriting Maryland property, read common mistakes people make when inheriting a Maryland home.
TOD Deed vs. Other Estate Planning Options in Maryland
| Method | Avoids Probate | Owner Keeps Control | Cost | Best For |
|---|---|---|---|---|
| TOD Deed | Yes (for the property) | Yes | Low (recording fees + attorney) | Simple estates, one property, straightforward beneficiary |
| Revocable Living Trust | Yes (for all assets in trust) | Yes | Moderate to high (attorney fees) | Complex estates, multiple properties, blended families |
| Joint Tenancy with Survivorship | Yes | Partially (co-owner has interest) | Low | Married couples, parent-child |
| Life Estate Deed | Yes | Limited (life tenant has rights) | Low to moderate | Specific succession planning, Medicaid planning |
| Will (without TOD) | No | Yes | Low to moderate | General estate planning, but property still goes through probate |
| Transfer-on-Death (Bank Accounts) | Yes (for that account) | Yes | Free | Financial accounts, not real estate |
For a broader overview of how TOD deeds compare to other estate planning tools, see our Maryland Transfer-on-Death Deed overview.
Frequently Asked Questions About Maryland TOD Deeds
How much does a Maryland TOD deed cost?
There is no state filing fee for recording a TOD deed in Maryland beyond the standard land recording fees, which vary by county. In most Maryland counties, recording a deed costs between $10 and $40. However, the recordation tax exemption under the new law means qualifying TOD deeds for primary or secondary residences are exempt from the Maryland recordation tax that would otherwise apply. That exemption can save homeowners hundreds or thousands of dollars depending on the property value. You should budget for attorney fees if you hire one to prepare the deed, typically $200 to $500 for a straightforward TOD deed.
Do I need a lawyer to create a TOD deed in Maryland?
Maryland's law includes a statutory model form, so it is technically possible to create a TOD deed without an attorney. However, the deed must meet specific execution, witness, and notarization requirements. Errors in the form, improper recording, or failure to address multiple beneficiaries can create serious problems after death. For most homeowners, especially those with multiple beneficiaries, blended families, existing mortgages, or complicated estate plans, hiring a Maryland estate-planning or real estate attorney is strongly recommended.
Can I have more than one TOD deed for different properties?
Yes. A TOD deed applies to the specific property described in the deed. If you own multiple properties in Maryland, you can create a separate TOD deed for each one. Each deed must be recorded in the county where the respective property is located.
Does a TOD deed work for rental properties or investment properties?
Yes, but the recordation tax exemption only applies to your primary or secondary residence. For rental or investment properties, the standard recordation tax would apply when the deed is recorded. A TOD deed can still be used to transfer investment property outside probate, but the tax benefit is limited to qualifying residences.
What if I sell the property after recording a TOD deed?
If you sell the property during your lifetime, the TOD deed is effectively canceled for that property. You receive the sale proceeds, and the buyer gets clear title. The TOD deed does not transfer to the proceeds. It was tied to the specific real estate. If you buy a new property, you would need to record a new TOD deed for the new property.
Can my TOD deed beneficiary be a trust?
Yes. You can name a trust as the beneficiary of a TOD deed. This can be useful for estate planning purposes, especially if you want the property to be managed by a trustee after your death. Consult with an attorney to make sure the trust language is compatible with the TOD deed requirements.
What happens to a TOD deed if I get divorced?
This is an area where you should consult an attorney. If you record a TOD deed naming your spouse as beneficiary and then get divorced, the TOD deed may still be in effect unless you formally revoke it. Maryland law provides methods for revocation, but simply getting divorced does not automatically cancel a recorded TOD deed. Revoke the deed if you no longer want your ex-spouse to receive the property.
Does a TOD deed protect the property from creditors?
No. A TOD deed does not shield the property from the owner's creditors during life or after death. Creditors may still be able to place liens on the property or seek payment from the estate. The TOD deed changes how ownership transfers. It does not create a protective shield against debts.
Is a TOD deed the same as a life estate deed?
No. With a life estate deed, the current owner (life tenant) retains the right to use and occupy the property during their lifetime, but ownership has already been partially transferred to the remainderman. A TOD deed is different. The owner retains full control and ownership during life, and the transfer only takes effect at death. A TOD deed is generally more flexible because the owner can sell, mortgage, or revoke the deed without the beneficiary's consent.
Can I use a TOD deed to avoid Maryland inheritance tax?
Not exactly. The TOD deed itself does not change who pays inheritance tax. Maryland inheritance tax is based on the beneficiary's relationship to the deceased, not on how the property was transferred. Spouses, children, grandchildren, parents, and siblings are exempt from Maryland inheritance tax regardless of whether the property transfers through probate, a TOD deed, a trust, or any other method. Non-exempt beneficiaries (nieces, nephews, friends, unmarried partners) would owe 10% inheritance tax whether the property comes through a TOD deed or through probate. The benefit of the TOD deed is avoiding the probate process and certain taxes. It does not change inheritance tax obligations. For a full comparison, see our Maryland estate tax vs. inheritance tax guide.
With a reverse mortgage on the property, a TOD deed interacts differently with lender requirements. Learn more in our guide on what happens when a probate house has a reverse mortgage in Maryland.
The Bottom Line
Beginning October 1, 2026, Maryland homeowners will have a new way to transfer real estate at death through a Transfer-on-Death deed.
A properly prepared TOD deed can allow the owner to:
- Keep control of the property while alive
- Name who receives the property after death
- Change or revoke the designation during life
- Transfer the real estate outside the normal probate transfer process
- Potentially avoid certain Maryland recordation and transfer taxes for qualifying primary and secondary residences
That makes this one of the more significant changes affecting Maryland homeowners and estate real estate planning in years.
For a step-by-step look at how probate sales work when a house passes through the traditional probate system, read our guide on selling a probate house in Maryland.
Need Help With a Maryland Probate or Inherited Property?
If you are an executor, personal representative or family member dealing with a house after someone has died, I can help you understand the real estate side of the process including property condition, value, repairs, clean-out, selling as-is and preparing the property for market.
Marc Cormier
Maryland Probate Real Estate Specialist
Berkshire Hathaway HomeServices PenFed Realty
For questions about whether a Transfer-on-Death deed is appropriate for your estate plan, how to prepare one, or how it interacts with your will or trust, speak with a qualified Maryland attorney.
Disclaimer
This article provides general real estate information and is not legal, tax or estate-planning advice. Every estate situation is unique. We strongly encourage you to work with qualified professionals, including a probate attorney, CPA, and experienced real estate broker, before making any decisions related to inherited property. Marc Cormier is a licensed real estate professional, not an attorney, CPA, or financial advisor.
Related Reading
- Maryland Transfer-on-Death Deed: What Heirs Need to Know — A comprehensive guide to how TOD deeds affect inherited property and estate planning
- How Long Does Probate Take in Maryland? — Timeline from filing to closing
- Selling a Probate House in Maryland — Step-by-step process for personal representatives
- Maryland Estate Tax vs. Inheritance Tax — Understanding how Maryland's two death taxes work and who pays
- What If a Probate House Has a Reverse Mortgage in Maryland? — Special considerations when a reverse mortgage and TOD deed interact
- Common Mistakes When Inheriting a Maryland Home — Pitfalls to avoid when receiving property through a TOD deed or probate
- How Much Does Probate Cost in Maryland? — Complete guide to probate costs and fees
- Contact Marc Cormier — Schedule a consultation about probate or inherited property
About the Author
Marc Cormier is a licensed real estate professional with Berkshire Hathaway HomeServices PenFed Realty in Potomac, Maryland, with 27 years of experience and close to 1,000 homes sold. He holds the Seniors Real Estate Specialist (SRES) designation and specializes in probate, distressed property, and estate sales across Maryland, DC, and Virginia.
