Maryland is adding a new probate-avoidance tool for homeowners.
Starting October 1, 2026, Maryland’s Transfer-on-Death Deed Act will let you record a deed that transfers your Maryland house to named beneficiaries when you die. The transfer can happen outside probate.
That sounds similar to a revocable living trust. In some simple situations, it may be enough.
But a TOD deed is not a complete estate plan. It does not provide the same incapacity protection, flexibility, or multi-property coordination as a trust.
Here is the practical comparison for families in Maryland, Virginia, Washington, DC, and West Virginia.
Important: This article is general information, not legal advice. Deeds and trusts affect real property rights. Have your documents reviewed before signing or recording them.
The short answer
Both a properly prepared and funded living trust and a properly executed and recorded Maryland TOD deed can help keep your house out of probate.
A TOD deed may make sense if:
- You own one Maryland home.
- You want to name one or a few adult beneficiaries.
- Your family situation is simple.
- You do not need someone to manage the home if you become incapacitated.
- You are comfortable updating and reviewing the deed as your life changes.
A revocable living trust is usually the stronger choice if:
- You have minor children.
- You want detailed instructions for dividing or managing property.
- You own property in more than one state.
- You want incapacity planning.
- You have blended-family concerns.
- You want one coordinated plan instead of separate beneficiary instructions.
How Maryland’s new TOD deed works
Maryland’s new law, Chapter 751, House Bill 738, creates the Maryland Transfer-on-Death Deed Act.
The basic process:
- Prepare a deed that meets Maryland’s deed requirements.
- State that the transfer will occur at the owner’s death.
- Sign and acknowledge the deed before a notary.
- Record it in the land records of the Maryland county where the property is located.
- Complete the recording before the owner dies.
The owner keeps control during life. A recorded TOD deed does not stop you from:
- Selling the property.
- Refinancing or mortgaging the property.
- Transferring the property to someone else.
- Revoking or changing the TOD deed.
The beneficiary does not receive a current ownership interest merely because the deed is recorded. The transfer happens at death, assuming the beneficiary survives and the deed is still effective.
The law also applies retroactively to qualifying deeds made before October 1, 2026, when the owner dies on or after that date. Because the recording process and deed language matter, do not rely on a generic form without confirming that it fits your situation.
The major TOD deed traps
A TOD deed is simple in concept. The details can create problems.
Beneficiary problems
You must decide what happens if your beneficiary dies before you.
Maryland’s statutory form allows a primary beneficiary and an alternate beneficiary. Without proper backup planning, the intended transfer may fail or produce an unexpected result.
Multiple beneficiaries create another issue. If the deed does not specify a different form of ownership, multiple beneficiaries generally receive the property as joint tenants with rights of survivorship.
That may not match your goals.
For example, you may want:
- Two children to own equal shares.
- Each child’s share to pass to their own children.
- One child to receive the house while another receives other assets.
- The property to be sold and the proceeds divided.
- A beneficiary’s share to remain in trust instead of passing outright.
A basic TOD deed may not handle those instructions well.
Multiple-owner problems
The deed rules become more complicated when spouses or other people own the property together.
Maryland’s law addresses joint owners, including joint tenants and tenants by the entirety. If one joint owner dies while another joint owner survives, the surviving joint owner or owners generally take the property first. The TOD deed becomes effective when the last surviving joint owner dies.
Also, one owner may not be able to revoke the entire arrangement alone. A TOD deed made by joint owners generally requires the living joint owners to act together for a full revocation.
Review the current deed before preparing a TOD deed. The names, ownership type, and legal description must be correct.
A will does not override the TOD deed
This is one of the most important points.
After a TOD deed is recorded, you generally cannot revoke it simply by signing a new will. The Maryland statutory information sheet says the TOD deed controls over a conflicting instruction in a will.
To revoke a recorded TOD deed, Maryland law allows methods such as:
- Recording a formal revocation.
- Recording a later TOD deed that changes the beneficiary.
- Transferring the property during life with a deed that revokes the TOD deed.
Your will, TOD deed, beneficiary designations, and trust should all be reviewed together.
No incapacity protection
A TOD deed does nothing if you become unable to manage your affairs.
It does not give a trusted person authority to:
- Pay your mortgage.
- Manage the property.
- Sign a listing agreement.
- Handle repairs.
- Deal with lenders.
- Make financial decisions for you.
A durable financial power of attorney may help with some of those tasks. A funded living trust can provide a more coordinated solution through a successor trustee.
Living trust Maryland families can use for broader planning
A revocable living trust is designed to hold property during your lifetime and distribute it after death.
You generally serve as the trustee while you are able. You can manage, sell, refinance, or use the house just as you did before.
You name a successor trustee to step in if you become incapacitated or die.
When the house is properly transferred into the trust:
- The successor trustee can manage it without waiting for a probate court appointment.
- The trust instructions control how the property is handled.
- The home can pass to multiple beneficiaries under detailed terms.
- One trust can potentially hold real estate in multiple states.
- The trust can work alongside your will, powers of attorney, medical directive, and HIPAA authorization.
A trust is not automatic. The house must be titled in the trust, or the plan may not work as intended. This funding step is critical.
Estate Plan HQ’s solo trust plan and couples trust plan are designed to address the wider planning picture, including trustees, backup agents, children, guardians, financial powers of attorney, medical decision-makers, and HIPAA agents.
TOD deed vs. living trust
| Issue | Maryland TOD deed | Revocable living trust |
|---|---|---|
| Avoids probate for the Maryland house | Yes, if valid and recorded | Yes, if the house is properly transferred to the trust |
| Lifetime control | Yes | Yes |
| Incapacity planning | No | Yes, through a successor trustee |
| Multiple beneficiaries | Possible, but can be rigid | Usually more flexible |
| Minor children | Limited without additional planning | Can hold assets for children under trust terms |
| Out-of-state property | Usually requires separate state-specific planning | One trust may coordinate property in multiple states |
| Changes | Must be properly revoked or replaced | Trust amendment or restatement is generally more flexible |
| Creditor protection | Not an asset-protection tool | A revocable trust is generally not an asset-protection tool either |
| Cost and complexity | Often lower for one simple property | More planning and funding work |
Neither option protects a home from every creditor claim. A TOD deed does not eliminate the transferor’s creditor rights. The beneficiary also receives the property subject to existing mortgages, liens, and other encumbrances.
A revocable trust generally does not protect your assets from your own creditors during your lifetime. Asset protection requires different planning and depends on the facts.
Small estate thresholds still matter
Avoiding probate for your house may also affect whether the rest of your estate qualifies for simplified administration.
In Maryland, the current small estate threshold is:
- $50,000 in property subject to administration; or
- $100,000 if the surviving spouse is the sole heir or legatee.
A Maryland TOD deed transfers the house outside the probate estate. The home’s value generally is not counted as probate property for this purpose. Other assets, debts, and family circumstances still matter.
Virginia has different thresholds. As of 2026:
- The small-estate affidavit limit is $75,000 for the decedent’s personal probate estate.
- A holder may voluntarily release a single qualifying asset of $35,000 or less without an affidavit, subject to the statute’s requirements.
Virginia also recognizes TOD deeds for real property under Virginia Code § 64.2-621 and following sections. A Maryland deed cannot be used for Virginia property. Each state’s deed and recording rules apply to property located there.
Taxes and the Maryland TOD deed
Maryland’s new law provides a useful tax benefit.
A TOD deed for the transferor’s primary or secondary residence is exempt from:
- Maryland recordation tax.
- Maryland state transfer tax.
- Maryland county transfer tax.
That does not mean every tax disappears. A TOD deed does not automatically eliminate Maryland inheritance tax. The beneficiary’s relationship to the owner still matters.
The Maryland legislative fiscal note explains that property passing through a TOD deed remains subject to inheritance tax rules when applicable.
Which option should you choose?
Choose a Maryland TOD deed when you need a focused solution for one uncomplicated home and your beneficiaries are adults who can receive the property directly.
Choose a revocable living trust when you want a complete plan for your family.
For many DMV families, the trust is the stronger long-term play because it addresses more than probate avoidance. It can coordinate your home, other assets, incapacity instructions, children, successor decision-makers, and property in more than one state.
The TOD deed is useful. It is not a substitute for every part of an estate plan.
If you want the lowest-friction starting point, review your current deed, list your beneficiaries, and identify whether you own property outside Maryland. Then compare the deed-only approach with a trust-based estate plan prepared and reviewed by an attorney.
That decision can help prevent court involvement, family conflict, and confusion when your family needs clear instructions most.