If you are reading this in early September, there are roughly a month less until Maryland’s new transfer-on-death deed law takes effect. Even if you are seeing this in late August, the window to understand your options, make decisions, prepare the deed, and complete the recording process is quickly narrowing.
Beginning October 1, 2026, Maryland homeowners will have a new way to transfer qualifying real property to beneficiaries outside probate: the transfer-on-death deed, commonly called a TOD deed.
The law creates an important estate-planning opportunity: but it is not a one-size-fits-all solution, and October 1 is not necessarily a filing deadline. A TOD deed can generally be recorded after the law takes effect as well. The urgency comes from the time required to determine whether it is appropriate for your family and to make sure it is prepared and recorded correctly.
Here is what Maryland homeowners should know.
What Is a Transfer-on-Death Deed?
A transfer-on-death deed allows the current owner of Maryland real property to name one or more beneficiaries who will receive the property at the owner’s death.
The transfer is designed to happen automatically and outside the probate process. During the homeowner’s lifetime, the named beneficiary does not own the property and does not receive a present legal interest in it.
In practical terms, the homeowner generally retains the ability to:
- Live in the property
- Sell or transfer the property
- Refinance or mortgage the property
- Change or revoke the beneficiary designation
- Use the property and its value during life
At death, if the deed is valid and the beneficiary survives the owner, the property may pass directly to that beneficiary without requiring probate.
Maryland enacted the law through House Bill 738, Chapter 751, which takes effect October 1, 2026.
Why Are Homeowners Paying Attention Before October?
For many Maryland families, the home is their most valuable asset. It may also represent decades of work, family memories, and financial security.
Without a coordinated plan, transferring a home after death can involve probate, court filings, creditor issues, delays, and disagreements among family members. A TOD deed may provide a relatively straightforward way to direct the home to a chosen beneficiary without sending that property through probate.
However, the deed must be properly prepared and recorded. Homeowners need time to:
- Confirm who currently owns the property.
- Review the existing deed and legal description.
- Decide who should inherit the property.
- Select alternate beneficiaries if appropriate.
- Consider mortgages, liens, taxes, and other obligations.
- Coordinate the deed with the rest of the estate plan.
- Record the completed deed in the correct land records office.
Waiting until the last minute increases the risk of using incorrect ownership information, leaving out a co-owner, naming beneficiaries improperly, or failing to record the deed in every required county.
Key Requirements for a Maryland TOD Deed
A Maryland TOD deed must satisfy specific legal and recording requirements. In general, it must:
- Be made by the current owner of the real property.
- Clearly state that the transfer will occur at the owner’s death.
- Be signed by the owner or owners.
- Be acknowledged before a notary or other authorized official.
- Include an accurate legal description of the property.
- Be recorded in the land records of each Maryland county where the property is located.
- Be recorded before the transferor’s death.
The law provides a statutory form that some homeowners may be able to use. But the law itself warns that the form may not be appropriate for more complicated circumstances.
An attorney’s review is especially important if:
- Your name has changed since you acquired the property.
- Your name is not the same as the name on the current deed.
- You own the property with another person.
- The property is owned by multiple individuals.
- You want to name multiple beneficiaries.
- You have a blended family.
- One beneficiary receives public benefits.
- You have minor children or a beneficiary with special needs.
- You have outstanding mortgages, liens, or tax obligations.
- You own other real estate in Maryland or another state.
A mistake in a deed is not like a typo in a letter. It can affect whether the intended transfer works at all.
A TOD Deed Is Revocable: but Your Will Cannot Revoke It
One of the most important features of Maryland’s law is that a TOD deed is revocable during the owner’s lifetime.
You can change your mind. A beneficiary cannot prevent you from revoking the deed, and the beneficiary does not control the property while you are alive.
But revocation must be handled correctly.
Once a TOD deed has been recorded, it generally cannot be revoked simply by:
- Tearing up the original document
- Writing “revoked” on the deed
- Signing a new will
- Telling your family that you changed your mind
Under the statute, revocation typically requires recording an appropriate revocation instrument, recording a new TOD deed that is inconsistent with the earlier deed, or transferring the property during life through another deed that revokes or supersedes the TOD deed.
This is a critical point: your will does not control over a contrary recorded TOD deed.
If your will leaves your home to one child but your TOD deed names another child, the TOD deed may control the transfer of the home. That is why the deed must be coordinated with your broader estate plan.
What Happens If You Name Multiple Beneficiaries?
Multiple beneficiaries can create unintended complications.
If a TOD deed names more than one beneficiary and does not specify a different form of ownership, the property may pass to those beneficiaries as joint tenants with rights of survivorship. That may not be what you intended.
For example, leaving a home to three adult children may sound simple. But after your death, those children may have different financial circumstances, living arrangements, or plans for the property. One may want to sell, another may want to move in, and another may be unable to manage property-related expenses.
A TOD deed does not automatically solve those future disagreements.
An attorney can help you evaluate whether a TOD deed, trust, outright inheritance, or another structure better reflects your wishes.
The Beneficiary Takes the Property With Its Liabilities
A TOD deed transfers the property: not necessarily a clean slate.
The beneficiary generally takes the property subject to existing:
- Mortgages
- Liens
- Security interests
- Other encumbrances
- Certain contracts or claims affecting the property
The deed also transfers the property without a warranty of title. That means the beneficiary may need to address title, mortgage, tax, insurance, and maintenance issues after the owner’s death.
The deed may avoid probate for the property, but it does not eliminate the need for responsible administration.
The beneficiary may also need to record a notice of the owner’s death to document the transfer in the land records and update ownership records. The transfer itself is considered to occur at death, but the post-death paperwork still matters.
Property Taxes, Transfer Taxes, and Inheritance Taxes
Maryland’s new law includes important tax provisions, but homeowners should not assume that a TOD deed eliminates every tax obligation.
For a Maryland primary or secondary residence, the TOD deed is generally exempt from Maryland recordation tax and county transfer tax under the new law. That can make recording the deed more affordable than some lifetime transfers.
However:
- Ongoing real property taxes still apply.
- Existing tax obligations and liens do not disappear.
- A TOD deed does not eliminate Maryland inheritance tax.
- The beneficiary’s individual tax situation may depend on the property, relationship, and future sale.
- Federal and state income-tax considerations should be reviewed as part of the overall plan.
Do not rely on a TOD deed as a tax-planning strategy without reviewing the details with a qualified Maryland estate-planning attorney and, when appropriate, your tax professional.
Medicaid and Long-Term-Care Planning Require Extra Care
Maryland’s statute provides that a TOD deed does not, by itself, affect the transferor’s or designated beneficiary’s eligibility for public assistance during the owner’s lifetime.
That does not mean a TOD deed answers every Medicaid or long-term-care planning question.
Medicaid eligibility, asset protection, and estate recovery involve detailed rules that may change over time. The treatment of a home can depend on factors such as:
- Whether the owner continues to live in the home
- The owner’s marital status
- The owner’s Medicaid eligibility category
- The timing of the deed
- Other transfers or trusts
- State and federal estate-recovery rules
A TOD deed may affect whether the property passes through probate, but it should not be treated as a substitute for personalized elder-law or Medicaid planning.
If long-term care, public benefits, or asset protection is part of your concern, review the proposed deed before recording it.
Is a TOD Deed Right for You?
A TOD deed may be worth considering if you:
- Own a Maryland home in your individual name.
- Want the home to pass to a specific adult beneficiary.
- Prefer a simple, revocable transfer arrangement.
- Want to reduce the likelihood that the home will require probate.
- Have a relatively straightforward family and ownership situation.
- Understand that the beneficiary will receive the property subject to its liabilities.
It may be less appropriate if you need:
- Continued management of the property for a beneficiary.
- Protection for a minor child.
- Special-needs planning.
- Asset protection for the beneficiary.
- Detailed instructions for selling or maintaining the home.
- Equalization among several beneficiaries.
- Medicaid or long-term-care planning.
- A plan for incapacity during your lifetime.
- A comprehensive solution for all your assets.
A TOD deed addresses one asset: real property. It does not replace a complete estate plan, including powers of attorney, health care directives, beneficiary reviews, trusts, and instructions for the people you love.
What Maryland Homeowners Should Do Now
If you are considering a TOD deed before October 1, start by gathering:
- Your current deed
- The property’s legal description
- The names of all current owners
- Your mortgage and lien information
- Recent property tax information
- The full legal names of intended beneficiaries
- Possible alternate beneficiaries
- Your current will or trust
- Any existing Medicaid or asset-protection documents
Then schedule a review with a Maryland estate-planning attorney before signing or recording anything.
At Eskay Law Group, we look beyond a single document to understand your family, your property, your goals, and the risks that may affect your plan. Our personalized estate-planning process is designed to help families keep their loved ones out of court and out of conflict: with transparent, flat-fee pricing and no surprise promises.
Schedule a consultation with Eskay Law Group to discuss whether a Maryland TOD deed belongs in your plan.
The October 1 effective date is approaching. The goal is not to rush into a deed. The goal is to make an informed decision while there is still time to do it correctly.
This article is for general educational purposes only and is not legal, tax, Medicaid, or financial advice. Laws and regulations may change. Consult a qualified Maryland attorney about your specific situation. No attorney-client relationship is created by reading this article.