A New Way to Leave Maryland Real Estate Without Probate

Beginning October 1, 2026, Maryland property owners will have a major new estate-planning option: the transfer-on-death deed, often called a TOD deed.

Maryland enacted the new Maryland Transfer-on-Death Deed Act during the 2026 legislative session. The legislation was signed into law as Chapters 750 and 751 and becomes effective October 1, 2026.

For many Maryland homeowners, this could provide a relatively simple way to transfer a house or other qualifying real property directly to a beneficiary when the owner dies—without requiring the property itself to pass through probate.

But a transfer-on-death deed is not simply a substitute for a will, and it is not automatically the right solution for every family.

There are important rules involving recordation, joint ownership, creditors, mortgages, taxes, beneficiaries, revocation, and what happens if a beneficiary dies first.

Here is what Maryland homeowners need to understand.

What Is a Transfer-on-Death Deed?

A transfer-on-death deed allows a property owner to name one or more beneficiaries who will receive the property when the owner dies.

The key words are:

when the owner dies.

The beneficiary does not become an owner when the TOD deed is signed.

The beneficiary does not become an owner when the TOD deed is recorded.

Instead, the property owner continues to own the property during life, and the beneficiary’s interest becomes effective at the owner’s death if the statutory requirements have been satisfied.

Maryland’s new law specifically characterizes this as a non-testamentary transfer, meaning the transfer operates outside the will process under the statute.

That is what makes TOD deeds potentially valuable as probate-avoidance tools.

A Simple Example

Suppose Mary owns a home in Montgomery County worth $800,000.

She has two adult children, David and Sarah.

Under Maryland’s new law, Mary could potentially execute and properly record a transfer-on-death deed naming David and Sarah as the beneficiaries of the house.

Mary continues living in the home.

She continues paying the mortgage, property taxes, insurance, repairs and other expenses.

She can potentially sell the home.

She can refinance it.

She can revoke the TOD deed.

David and Sarah do not become co-owners merely because Mary signed the deed.

When Mary eventually dies, assuming the TOD deed is valid and still in effect, ownership can transfer to the designated beneficiaries under the TOD deed rather than requiring the property to be distributed through Mary’s probate estate.

The Maryland Department of Legislative Services explains that real property transferred under the new law passes outside the probate estate.

That is the core benefit.

The Beneficiary Does Not Own the Property While You Are Alive

This point is extremely important.

Many parents hesitate to put children on the deed to their house because doing so can immediately create ownership rights.

A TOD deed works differently.

Under Maryland’s new law, during the property owner’s lifetime, the deed does not create a legal or equitable interest in favor of the designated beneficiary. It also does not affect the owner’s right to transfer or encumber the property.

In plain English:

Your child does not own your house while you’re alive just because you named the child on a TOD deed.

That is very different from adding your child as a present co-owner.

You Keep Control of the Property

One of the strongest features of the new law is that the property owner retains control.

A recorded TOD deed does not prevent the owner from:

• selling the property;
• mortgaging or refinancing it;
• otherwise encumbering it;
• changing the beneficiary; or
• revoking the TOD deed.

Maryland’s legislative analysis specifically says the TOD deed does not affect the transferor’s ownership rights during life, including the right to transfer or encumber the property.

So imagine you name your daughter as beneficiary today.

Five years later, you decide to sell the house and move to Florida.

The existence of the TOD designation does not mean your daughter gets to veto the sale merely because she was named as beneficiary.

Her interest has not yet vested.

The Deed Must Be Recorded Before Death

This is one of the most important technical requirements.

The TOD deed must be properly recorded in the land records of the county where the property is located before the transferor dies.

Simply signing a TOD deed and leaving it in a desk drawer is not enough.

Imagine Dad signs a TOD deed naming his son as beneficiary.

Dad puts the deed in his safe.

He dies two years later.

If the deed was never properly recorded before Dad’s death, the family may have a serious problem.

The recordation requirement is therefore not a minor administrative detail.

It is central to making the transfer effective.

The Deed Has to Say the Transfer Happens at Death

A Maryland TOD deed must satisfy applicable deed requirements and state that the transfer to the designated beneficiary is to occur at the transferor’s death.

The legislation also provides model forms that may be used for creating a TOD deed and for revoking one.

That does not mean every homeowner should automatically download a form and fill it out without advice.

The deed still affects title to real estate, and errors involving ownership, beneficiary designations or conflicting estate-planning documents can create expensive disputes.

You Do Not Need the Beneficiary’s Permission

Maryland’s new law does not require the beneficiary to accept the TOD deed during the owner’s lifetime.

It also does not require the owner to give the beneficiary notice that the deed exists.

That means, at least under the statute, a parent could potentially name a child without obtaining the child’s signature or permission.

This also gives the property owner privacy and flexibility.

You can establish the designation without necessarily making your child part of your real-estate ownership while you are alive.

A TOD Deed Is Revocable

A Maryland TOD deed is revocable.

That means you can change your mind.

Suppose you name your three children equally.

Later, one child dies.

Or perhaps your estate plan changes.

Or you decide the property should instead pass into a trust.

The law provides methods for revoking a previously recorded TOD deed, including recording an appropriate revocation instrument or another deed that revokes the TOD deed expressly or by inconsistency.

But there is a major trap here.

You Cannot Simply Cross It Out or Change Your Will

After a TOD deed has been recorded, Maryland’s new law says it cannot be revoked merely by physically marking up the deed.

More importantly:

A later will does not automatically revoke a recorded TOD deed.

The Maryland legislative analysis specifically states that a recorded TOD deed may not be revoked by a testamentary document, even if that document is executed after the TOD deed.

This could create a major estate-planning mistake.

Imagine your TOD deed says:

House → Daughter

Five years later, you sign a new will saying:

House → Son

If you never properly revoke the TOD deed, the TOD deed may control the transfer of the house.

Your will and TOD deed should therefore be coordinated carefully.

What Happens If You Own the Property With Your Spouse?

Jointly owned property requires special attention.

The new Maryland statute specifically addresses joint owners, including individuals who own property with rights of survivorship and married couples holding property as tenants by the entirety.

Suppose Husband and Wife own their home as tenants by the entirety.

They execute a TOD deed naming their children.

Husband dies first.

The children do not necessarily receive the house at Husband’s death.

Because Wife is the surviving joint owner, the property generally remains with Wife.

The TOD transfer becomes effective after the death of the last surviving joint owner, assuming the TOD deed remains in effect.

Conceptually:

Husband + Wife own house

↓ Husband dies

Wife owns house

↓ Wife later dies

TOD beneficiaries receive house

That structure could be particularly useful for married couples who want the surviving spouse to retain ownership throughout life but want the house to pass directly to children after the second death.

What If You Name More Than One Child?

Maryland’s new law allows a TOD deed to designate multiple beneficiaries.

The deed may specify how those beneficiaries will hold title.

But here is an important default rule:

If the TOD deed names multiple beneficiaries and does not specify the form of ownership, the legislation provides that title generally passes to the beneficiaries as joint tenants with rights of survivorship.

That could have consequences families do not anticipate.

Suppose Mom names three children.

The property transfers to all three.

One child later dies.

If the children hold the property as joint tenants with rights of survivorship, that deceased child’s ownership interest can pass to the surviving joint owners rather than necessarily to that child’s own descendants.

The form of ownership after death therefore deserves careful thought.

What Happens If Your Beneficiary Dies Before You?

Another important issue is beneficiary survival.

If the designated beneficiary dies before the property owner, that beneficiary’s interest generally lapses under the new statute.

However, the TOD deed can name an alternate beneficiary.

It can even provide for successive alternate beneficiaries.

This is an important drafting opportunity.

Suppose Dad says:

House → Son

Son dies before Dad.

If Dad never updates the TOD deed and there is no alternate beneficiary provision, the intended transfer may fail as to that beneficiary.

A better-designed deed might say, in substance:

To Son, but if Son does not survive me, to Son’s children.

Whether that particular structure is appropriate depends on the family and the deed language, but the underlying lesson is clear:

Always plan for the possibility that your beneficiary dies first.

Your Beneficiary Takes the Property With the Mortgage and Liens

A TOD deed does not magically erase debts attached to the property.

Under Maryland’s new law, the beneficiary takes the property subject to the conveyances, mortgages, liens, security agreements and other encumbrances affecting the property at the owner’s death.

Suppose Mom’s house is worth $800,000 but has a $300,000 mortgage.

The TOD deed doesn’t mean her daughter receives an $800,000 debt-free house.

The property transfers subject to the existing mortgage and other applicable encumbrances.

The same concept applies to liens.

A TOD deed is a transfer mechanism.

It is not a debt-elimination device.

A TOD Deed Does Not Protect the Property From Your Own Creditors

While the owner is alive, recording a TOD deed does not make the property invisible to creditors.

The legislation expressly provides that the TOD deed does not affect the rights of the transferor’s secured or unsecured creditors during the transferor’s lifetime.

That makes sense.

You still own the property.

Naming a beneficiary to receive it when you die does not turn it into protected property during your lifetime.

But Your Beneficiary’s Creditors Generally Don’t Get Rights During Your Lifetime

There is another side to this.

Because the beneficiary has no present legal or equitable interest during your lifetime, Maryland’s new law provides that the TOD designation does not subject your property to claims or process by the beneficiary’s creditors while you are alive.

This is one reason a TOD deed can be very different from adding your child directly to the deed.

Suppose your son has financial problems.

If you make him an actual co-owner today, you may potentially create issues involving his creditors or other legal problems.

Naming him as a TOD beneficiary generally does not create that same present ownership interest during your lifetime.

Does a TOD Deed Avoid Probate?

For the transferred real property, that is one of the principal purposes.

Maryland’s Department of Legislative Services specifically states that property transferred under the TOD legislation is transferred outside of the probate estate.

That could make estate administration significantly easier for some families.

Imagine Mom’s primary asset is her house.

If the home can transfer automatically under a valid TOD deed, the family may not need to probate that particular asset merely to transfer title to the intended beneficiary.

But avoiding probate does not mean avoiding every other legal or tax consequence.

Does a TOD Deed Avoid Maryland Estate Tax?

Not necessarily.

This is a critical distinction.

Probate taxation and estate taxation are not the same thing.

A transfer-on-death deed determines how title passes.

It does not automatically remove the value of the property from the owner’s taxable estate for federal or Maryland estate-tax purposes.

So if a Maryland resident owns a $2 million house at death and it passes by TOD deed, the fact that the house avoids probate does not necessarily mean:

“The government pretends the $2 million house didn’t exist.”

Estate-tax inclusion is determined under separate tax laws.

This is particularly important for Maryland residents with estates approaching or exceeding Maryland’s estate-tax exemption.

What About Maryland Inheritance Tax?

A TOD deed also does not automatically eliminate Maryland inheritance tax.

Maryland’s fiscal analysis specifically notes that property transferred under the new legislation can still be subject to inheritance tax if the beneficiary is otherwise a taxable beneficiary.

For many close family members—including spouses and children—Maryland inheritance-tax exemptions generally make this less of a concern.

But if you are naming a more distant relative, friend or unrelated individual, inheritance tax should be considered.

Again:

Avoiding probate does not necessarily mean avoiding tax.

What About Transfer and Recordation Taxes?

The new law contains a favorable provision for certain residential property.

Maryland’s legislative analysis states that a real-property TOD deed is not subject to recordation tax or State or county transfer tax if the property is the transferor’s primary residence or secondary residence.

That could be an important benefit for homeowners.

But owners of investment property, commercial property or other real estate should not simply assume the same treatment applies.

The nature and use of the property matter.

What Happens After the Owner Dies?

Upon the transferor’s death, the beneficiary may record a notice of death in the county land records.

Interestingly, Maryland’s new law says this notice is not what actually causes the transfer.

The transfer is considered to have occurred upon the transferor’s death under the TOD deed.

The death notice helps update the land and assessment records.

So the legal concept is:

Death triggers the transfer.

The later land-record filing documents what has already occurred under the statute.

The Effective Date Has an Interesting Twist

The new law takes effect October 1, 2026.

But the legislation contains an unusually important application provision.

It states that the Act applies to a transfer-on-death deed made before, on, or after October 1, 2026, provided that the transferor dies on or after the effective date.

That does not mean homeowners should casually create homemade TOD deeds before the effective date.

It means the legislation specifically contemplates certain deeds executed before October 1, 2026 being recognized if the owner dies on or after the law becomes effective and the statutory requirements are satisfied.

Because recordability, deed form and implementation procedures matter, homeowners considering early execution should obtain Maryland legal advice rather than assuming any document labeled “TOD deed” will work.

TOD Deed vs. Adding Your Child to the Deed Today

These approaches can have dramatically different consequences.

Suppose your home is worth $1 million.

Option 1: Add Your Son as Co-Owner Today

Your son may immediately acquire an ownership interest.

That can potentially create:

• creditor issues;
• divorce-related complications;
• loss of control;
• gift-tax issues;
• capital-gains basis issues; and
• difficulty changing your mind later.

Option 2: Use a TOD Deed

You remain the owner during your lifetime.

Your son generally has no present ownership interest.

You can potentially sell the property.

You can mortgage it.

You can change the beneficiary.

You can revoke the deed.

Your son receives the property only after your death if the TOD deed remains effective.

For many homeowners, that distinction alone could make TOD deeds worth considering.

TOD Deed vs. Revocable Living Trust

A TOD deed may also provide a simpler alternative to transferring real estate into a revocable living trust.

But a trust can do things a TOD deed cannot.

Suppose you want your house to pass to your daughter when you die.

A TOD deed may accomplish that relatively simply.

But what if you want:

Your daughter to live in the house for five years, then sell it?

Your children to receive income from the property but not control it?

The property held for grandchildren?

A trustee to manage the property for a beneficiary with financial problems?

Creditor or divorce protection for your child’s inheritance?

Those goals may require a trust rather than a simple beneficiary designation.

A TOD deed is excellent at answering:

“Who gets this property when I die?”

A trust can answer a much more sophisticated question:

“Who gets the benefit of this property, under what conditions, with what protections, and for how long?”

TOD Deeds and HEMS Trusts

This distinction can be particularly important for parents who want children’s inheritances held in trust.

Suppose you have a $1 million Maryland home and two children.

You could potentially name the two children directly on a TOD deed.

But then, when you die, they become owners.

If your larger estate plan says:

“I want everything my children inherit to remain in lifetime HEMS trusts,”

a direct TOD designation to the children could undermine that objective.

Instead, depending on the statute, title requirements and overall estate plan, you may want to explore whether the appropriate trust or trustee should be the beneficiary rather than the children individually.

The lesson is simple:

Do not create TOD deeds in isolation from the rest of your estate plan.

The Blended-Family Problem

TOD deeds can also be dangerous in blended families if they are not coordinated carefully.

Suppose Dad has two children from his first marriage.

Dad remarries.

He signs a will leaving everything in trust for his wife during her lifetime, with the remainder to his children.

But years earlier, Dad recorded a TOD deed giving his house directly to his new wife.

At Dad’s death, the house may transfer under the TOD deed rather than under the trust structure contemplated by the will.

If Wife owns the house outright, Dad’s children may ultimately have no interest in it.

This is why beneficiary-designation estate planning must be coordinated with wills and trusts.

When a TOD Deed May Make Sense

A Maryland TOD deed may be particularly attractive when:

• you own a home in your individual name;
• you know exactly who should receive it;
• your beneficiaries are responsible adults;
• you want to avoid probate for the property;
• you want to retain complete control while alive;
• you want the ability to change your mind;
• you do not need complicated trust restrictions; and
• the designation fits with the rest of your estate plan.

For a straightforward estate, it could be an excellent tool.

When a TOD Deed May NOT Be Enough

A TOD deed may be less appropriate when:

• beneficiaries are minors;
• a beneficiary has creditor problems;
• a beneficiary is going through a divorce;
• a beneficiary receives means-tested public benefits;
• you want the inheritance held in trust;
• you have a blended family;
• you want unequal or conditional distributions;
• estate-tax planning is important;
• you own complicated business or investment real estate;
• multiple beneficiaries will disagree about the property; or
• you want long-term asset protection after your death.

In those situations, a trust-based plan may provide significantly more flexibility and protection.

Consider What Happens the Day After You Die

One of the best ways to evaluate a TOD deed is to ask a simple question:

“What do I want to happen to this property the day after I die?”

If your answer is:

“I want my daughter to own it outright.”

A TOD deed may be worth serious consideration.

But if your answer is:

“I want my daughter to benefit from it, but I don’t want her creditors, spouse or bad financial decisions to put the property at risk,”

then simply transferring the property outright may not accomplish your objective.

Likewise, if you have three children and the plan is:

“They’ll figure out what to do with the house.”

You may be creating a future family dispute.

One child may want to sell.

One may want to live there.

One may want rental income.

A TOD deed makes the beneficiaries owners.

It does not automatically solve the problems of joint ownership.

The Bottom Line

Effective October 1, 2026, Maryland homeowners will have a powerful new estate-planning tool.

A properly created and recorded transfer-on-death deed can allow real property to pass directly to one or more beneficiaries when the owner dies, outside the probate estate.

During the owner’s lifetime, the designated beneficiary generally receives no present ownership interest. The owner retains the ability to sell, mortgage or otherwise deal with the property and can revoke the TOD deed using the procedures established by Maryland law.

But a TOD deed does not automatically:

eliminate estate tax;

eliminate inheritance tax;

remove mortgages or liens;

protect the inheritance after the beneficiary receives it;

replace a comprehensive estate plan;

or

override the need to coordinate wills, trusts and beneficiary designations.

That is why the new Maryland TOD deed should be viewed as a tool, not an estate plan by itself.

For some homeowners, it may be exactly the simple probate-avoidance solution they have been waiting for.

For others, especially families with significant assets, blended families, minor children or beneficiaries who need long-term protection, a trust may still be the better approach.

The most important thing is to make the choice intentionally.

Because beginning October 1, 2026, Maryland homeowners will have one more way to answer one of estate planning’s most important questions:

Who gets my house when I’m gone—and how do I get it to them as efficiently as possible?

This article is for general educational purposes only and does not constitute legal, tax or financial advice. Maryland’s Transfer-on-Death Deed Act becomes effective October 1, 2026. Real-estate ownership, deed preparation, beneficiary designations, estate taxation and probate consequences depend on individual circumstances. Homeowners should consult qualified Maryland estates-and-trusts and real-estate counsel before preparing or recording a transfer-on-death deed.