Maryland Transfer-on-Death Deeds vs. Living Trusts: What Homeowners Should Know Before October 1, 2026

Beginning October 1, 2026, Maryland homeowners will have another way to name who should receive real estate after they die. A transfer-on-death deed, commonly called a TOD deed, may allow the property to pass directly to a named beneficiary without probate for that property. Maryland House Bill 738 was approved as Chapter 751 on May 26, 2026. Review the Maryland legislation.

That does not make a TOD deed a simpler version of a living trust.

A TOD deed is primarily a property-transfer instruction. A revocable living trust can provide a broader structure for owning and managing property during life, during incapacity, and after death. The better choice depends on what the homeowner needs the plan to accomplish.

For more than 30 years, Dawn Trainor-Fogleman has practiced law, and for over 20 years she has concentrated on estate planning. Her approach is to explain wills, trusts, powers of attorney, advance directives, and property-transfer options in plain English so clients understand what each document does and how the documents work together. Learn more about Dawn Trainor-Fogleman.

This guide explains Maryland’s new TOD deed law, how a TOD deed compares with a living trust, and what homeowners should consider before recording a deed.

This article provides general information about Maryland law. It is not legal or tax advice for any individual, family, property, or estate plan.

On This Page

• What a Maryland transfer-on-death deed does
• When the new law takes effect
• Whether a TOD deed avoids probate
• TOD deeds compared with wills
• TOD deeds compared with living trusts
• How a TOD deed can be revoked
• What happens if a beneficiary dies first
• What happens after the property owner dies
• Inheritance tax considerations
• Mortgages, liens, and property obligations
• Why a TOD deed is not a complete estate plan
• Questions to ask before recording a deed
• Frequently asked questions

What Is a Maryland Transfer-on-Death Deed?

A Maryland transfer-on-death deed is a revocable deed that allows an individual property owner to name one or more beneficiaries to receive the owner’s interest in real estate at death.

The beneficiary does not become a current owner simply because the deed is signed or recorded. During the owner’s lifetime, the TOD deed does not create a legal or equitable interest for the beneficiary. The owner generally remains free to live in the home, sell it, refinance it, mortgage it, or transfer it another way. The deed also does not prevent the owner’s existing or future creditors from asserting rights they would otherwise have.

For the deed to operate under the new law, it must meet Maryland’s execution and recording requirements. It must identify the property, state that the transfer occurs at death, be properly acknowledged, and be recorded in the land records before the transferor dies. If the property extends into more than one jurisdiction, the deed should be recorded in each applicable land-records office.

A TOD deed may look like a fill-in-the-blank form, but the legal description, current ownership, beneficiary language, signatures, and recordation all matter.

The statutory form is designed for some, but not all, situations. Legal review is particularly valuable when the current owner’s name does not match the existing deed, not all owners are signing, joint ownership is involved, or the owner is unsure how multiple beneficiaries should receive the property.

When Does Maryland’s TOD Deed Law Take Effect?

The Maryland Transfer-on-Death Deed Act takes effect October 1, 2026.

The Act applies to a transfer-on-death deed made before, on, or after October 1, 2026, when the transferor dies on or after that date. The owner’s date of death determines whether the new Act applies. View the official bill information.

Homeowners should not record a TOD deed simply because a new form is available. Before making that decision, one of the first steps should be reviewing:

1. The current recorded deed
2. The exact form of ownership
3. The property’s legal description
4. Existing wills and trusts
5. Primary and alternate beneficiaries
6. Mortgages, liens, and unpaid obligations
7. Incapacity-planning needs
8. The effect on the rest of the estate plan

For clients in Damascus, Frederick, Rockville, and surrounding Maryland communities, an in-home meeting can make this review easier because the deed, mortgage records, account information, and existing estate-planning documents are often readily available.

Does a Maryland TOD Deed Avoid Probate?

A valid Maryland TOD deed can transfer the covered real estate without probate. It does not prevent probate for assets that are not covered by the deed or another valid nonprobate arrangement.

A TOD deed may keep the house out of the probate estate, but the owner may still leave behind:

• Bank or investment accounts without beneficiaries
• Vehicles titled individually
• Business interests
• Personal belongings
• Refunds or payments owed to the estate
• Other real estate
• Assets with failed or outdated beneficiary designations

Probate avoidance should not be the only goal.

Avoiding probate for the home does not answer who can manage the property if the owner becomes incapacitated. It does not determine whether the beneficiary can afford the mortgage and upkeep. It also does not provide instructions for holding, selling, or managing the property after the beneficiary receives it.

Maryland TOD Deed vs. a Will

A will and a TOD deed control different transfers.

A Maryland will provides instructions for assets that pass through probate. It can name a personal representative, direct the distribution of probate property, and nominate guardians for minor children. A will does not avoid probate by itself.

A valid recorded TOD deed transfers the described property outside the will. A TOD deed generally controls over a contrary instruction in a will regarding the same property. A later will also cannot revoke a recorded TOD deed on its own.

For example, suppose a will divides an estate equally among three children, but a TOD deed names only one child to receive the house. The house may pass under the deed while the remaining probate assets are divided under the will.

That may be intentional. It may also create a much larger or more unequal distribution than the owner realized.

The practical lesson is straightforward: a TOD deed should be reviewed with the will, not added to the plan as a separate decision.

Maryland TOD Deed vs. Living Trust

The primary difference is what each tool is designed to manage.

A TOD deed transfers identified real estate at death. A revocable living trust may hold and manage multiple assets during the creator’s life, during incapacity, and after death.

Comparison of a Maryland TOD deed and a revocable living trust

Planning question	Maryland TOD deed	Revocable living trust
Can it avoid probate?	For the covered property if the deed is valid	For assets properly transferred to or coordinated with the trust
Can it cover several asset types?	No, it applies to real property	Potentially
Does it provide management during incapacity?	No	A successor trustee may manage trust property
Can it delay or control distributions?	Very limited	Yes, depending on the trust terms
Is it suitable for minor beneficiaries by itself?	Usually not	It can hold and manage assets for them
Can it be changed?	Yes, through the required process	Generally, while the creator has capacity
Does it replace a will?	No	No
Does it replace powers of attorney or healthcare documents?	No	No

When a TOD deed may be worth considering

A TOD deed may be a reasonable option to evaluate when:

• The owner has a straightforward goal for one property.
• The beneficiary is an adult who can receive the property outright.
• No continuing management is needed.
• The owner has carefully selected backup beneficiaries.
• The transfer is coordinated with the rest of the estate plan.

When a living trust may provide more useful planning

A revocable living trust may deserve greater consideration when:

• Several properties or financial assets need to be coordinated.
• Someone may need to manage property during the owner’s incapacity.
• A beneficiary is a minor.
• A beneficiary should not receive the property outright.
• The owner wants detailed instructions for a sale or continued occupancy.
• Blended-family concerns require more control.
• Several beneficiaries are unlikely to manage the property well together.
• A beneficiary has disability, creditor, divorce, or money-management concerns.

A trust is not automatically better because it can do more. Not everyone needs one. The decision should begin with the homeowner’s goals, assets, family relationships, and concerns.

The firm’s guide to setting up a living trust in Maryland provides additional information about how a trust is created and why properly coordinating assets with the trust matters.

A practical way to compare the options

Ask two questions:

1. Do I only need to direct who receives this property when I die?
2. Do I also need someone to manage assets during incapacity or after my death?

The first question may lead to a TOD deed discussion. The second often requires a broader conversation about a trust, power of attorney, or coordinated estate plan.

Homeowners who are unsure do not need to decide which document to request before speaking with an attorney. Reviewing the deed and existing estate plan can help identify which tool actually fits the situation.

Can a Maryland TOD Deed Be Changed or Revoked?

Yes. A Maryland TOD deed remains revocable during the owner’s lifetime, but a recorded deed must be changed through a legally recognized method.

The owner may generally revoke all or part of a recorded TOD deed by recording:

1. A later TOD deed that expressly or inconsistently revokes the earlier deed
2. A properly executed and acknowledged revocation instrument
3. A lifetime deed that expressly or inconsistently revokes the TOD deed

The required document must be completed and recorded before the owner’s death. A TOD deed cannot be revoked merely by crossing it out, tearing up a personal copy, verbally changing the plan, or signing a conflicting will.

Jointly owned property requires additional attention. Revocation by one transferor generally does not revoke another transferor’s interest, and a deed made by joint owners may require action by all living joint owners.

What Happens If the Beneficiary Dies Before the Owner?

If the named beneficiary does not survive the owner, that beneficiary’s interest generally lapses. If the deed names a qualifying alternate beneficiary who survives the owner, the property may pass to that alternate beneficiary instead.

This is one reason beneficiary planning should go beyond writing down one name.

The owner should decide:

• Who should inherit if the first beneficiary dies
• Whether a deceased child’s descendants should receive that child’s share
• Whether several people should inherit together
• Whether the property should pass to a trust
• Whether the home should be sold and the proceeds divided

When two or more beneficiaries receive the property together, the form of ownership matters. If the deed does not clearly address that issue, Maryland’s statutory rules may determine how their interests are held.

That structure may not fit every family. Several beneficiaries may disagree about living in the property, paying expenses, making repairs, refinancing, renting it, or selling it.

What Happens After the Property Owner Dies?

The transfer is treated as occurring when the owner dies. A probate deed is not required to create the transfer under the TOD deed.

A beneficiary may record a notice of the transferor’s death in the land records where the property is located. Although the notice is not what makes the transfer effective, recording it can help update the state’s property ownership and assessment records.

The beneficiary may still need to address practical matters such as:

• Providing information from the death certificate
• Updating assessment and tax records
• Contacting the mortgage servicer
• Maintaining insurance
• Paying property taxes
• Coordinating with other beneficiaries
• Deciding whether to keep or sell the property

Avoiding probate does not mean there is nothing left to administer.

Does a Maryland TOD Deed Avoid Inheritance Tax?

No. A TOD deed does not automatically avoid Maryland inheritance tax.

Probate and inheritance tax are separate issues. A property can pass outside probate and still create an inheritance-tax obligation depending on the beneficiary’s relationship to the owner and other facts.

Homeowners should also distinguish inheritance tax from:

• Estate tax
• Capital-gains treatment
• Property taxes
• Recordation taxes
• Transfer taxes

The new law provides exemptions from certain recordation and transfer taxes for qualifying TOD deeds, but that does not eliminate every possible tax consequence connected with the property or its transfer.

An attorney can address the legal structure, while a tax professional may be appropriate when the transfer presents more complicated tax questions.

What Happens to Mortgages, Liens, and Other Obligations?

The beneficiary receives the property subject to the mortgages, liens, contracts, security interests, and other encumbrances affecting it at the owner’s death. The TOD deed does not erase those obligations.

Before naming someone to receive a house, consider whether that beneficiary can manage:

• Mortgage payments
• Property taxes
• Insurance
• Association fees
• Repairs and maintenance
• Refinancing requirements
• Shared expenses with other beneficiaries

The deed also does not create broad asset protection.

During the owner’s lifetime, the beneficiary has no present ownership interest. After the beneficiary receives the property, however, the beneficiary’s own financial, creditor, divorce, or legal circumstances may affect it.

Why a TOD Deed Is Not a Complete Estate Plan

A TOD deed answers one narrow question: who should receive this property when the owner dies?

A complete estate plan may also need to address who can manage finances, who can make medical decisions, how other assets will pass, and who should care for minor children.

Durable financial power of attorney

A durable financial power of attorney may authorize a trusted person to manage financial and legal matters during the owner’s lifetime.

Advance directive and healthcare power of attorney

These documents identify who can make healthcare decisions and provide guidance about medical wishes.

HIPAA authorization

A HIPAA authorization can allow designated individuals to receive protected medical information.

Will

A will can name a personal representative, direct probate assets, and nominate guardians for minor children.

Revocable living trust

A properly prepared and funded living trust can provide continuing management of trust assets during incapacity and after death.

One property-transfer document is not a complete estate plan. The goal is to make sure the deed, will, trust, powers of attorney, healthcare documents, and beneficiary designations all lead in the same direction.

Dawn provides wills, revocable and irrevocable trusts, powers of attorney, advance directives, healthcare planning documents, guardianship nominations, and probate assistance. She also offers mobile and in-home estate-planning consultations, allowing clients to review important family and property information in a comfortable setting. Explore the firm’s estate-planning services.

Questions to Ask Before Recording a Maryland TOD Deed

Before recording a TOD deed, ask:

1. How is the property currently titled?
2. Does my legal name match the existing deed?
3. Are there other owners whose rights must be considered?
4. Who should receive the property?
5. What should happen if that beneficiary dies before me?
6. Should I name one or more alternate beneficiaries?
7. What form of ownership should multiple beneficiaries receive?
8. Can the intended beneficiary afford to keep the property?
9. Are there mortgages, liens, taxes, or other obligations?
10. Could inheritance tax apply?
11. Does my will or trust contain different instructions?
12. Who will manage the property if I become incapacitated?
13. Does a beneficiary need continued management or protection?
14. Have marriage, divorce, births, deaths, or name changes affected my plan?
15. Do my financial and healthcare documents still reflect my wishes?

These questions help determine whether the TOD deed is enough for the intended goal or whether a living trust or another estate-planning structure would provide a better fit.

Frequently Asked Questions About Maryland TOD Deeds

When does Maryland’s transfer-on-death deed law take effect?

The Maryland Transfer-on-Death Deed Act takes effect October 1, 2026. It applies to a qualifying TOD deed made before, on, or after that date when the transferor dies on or after October 1, 2026.

Does a Maryland TOD deed override a will?

A valid recorded TOD deed generally controls over a contrary instruction in a will concerning the same property. A later will does not revoke the recorded deed by itself.

Can more than one beneficiary be named?

Yes. A TOD deed may name multiple beneficiaries. The form of ownership they receive and the practical consequences of managing the property together should be reviewed before the deed is recorded.

Does a TOD deed help if the owner becomes incapacitated?

No. A TOD deed operates at death and does not authorize someone to manage the property during the owner’s incapacity. That issue may be addressed through a durable financial power of attorney or a properly funded living trust.

Is a TOD deed better than a living trust?

Neither is universally better. A TOD deed may fit a straightforward transfer of one property. A living trust may be more appropriate when the owner needs incapacity planning, management of several assets, detailed distribution instructions, or continuing protection for beneficiaries.

Review the Property and the Rest of the Plan Together

Maryland’s new TOD deed gives homeowners another planning option. It may avoid probate for the covered property, but it does not automatically eliminate inheritance tax, remove mortgages or liens, provide management during incapacity, or replace a will, trust, power of attorney, or advance directive.

Before recording a deed, review:

• How the property is titled
• Who should receive it
• Who should inherit if the first beneficiary dies
• Whether several beneficiaries can manage it together
• What obligations come with the property
• How the deed fits with every other estate-planning document

The Law Office of Dawn Trainor-Fogleman LLC provides personalized estate-planning guidance for families in Damascus, Frederick, Gaithersburg, Rockville, Silver Spring, and communities throughout Maryland. Dawn explains the available options in plain English and offers mobile and in-home appointments so clients have time to ask questions and understand the documents before making a decision. Learn more about Dawn’s approach.

Request a free initial estate-planning consultation to discuss whether a Maryland transfer-on-death deed, living trust, will, or coordinated plan may be appropriate for your property and family.