Transfer-on-Death Deed

TRANSFER-ON-DEATH DEED — MARYLAND

⚠ IMPORTANT: TOD DEEDS ARE NOT YET AUTHORIZED IN MARYLAND

TABLE OF CONTENTS

1. Current Legal Status
2. Pending Legislation — SB 651 / HB 738 (2026)
3. Proposed TOD Deed Requirements
4. Alternative Estate Planning Methods
5. Comparison of Alternatives
6. Draft TOD Deed Form (For Use ONLY If Enacted)
7. State-Specific Notes
8. Sources and References

1. CURRENT LEGAL STATUS

As of April 2, 2026, Maryland does NOT recognize transfer-on-death deeds for real property.

Maryland is among the minority of states that has not yet enacted legislation authorizing TOD deeds. A TOD deed recorded in Maryland under current law would have no legal effect and would NOT transfer title upon death.

2. PENDING LEGISLATION

Senate Bill 651 / House Bill 738 — 2026 Regular Session

Key provisions of SB 651 / HB 738:

• Establishes the Maryland Transfer-on-Death Deed Act
• Authorizes creation, revocation, recordation, and effects of TOD deeds for real property
• Provides for the effect of a transferor's death on the deed
• Establishes forms and informational documents for TOD deeds
• Exempts TOD deeds from recordation and transfer taxes
• Applies retroactively to TOD deeds made before, on, or after the effective date (if transferor dies on or after the effective date)
• Applies to certain life estate deeds with powers where the transferor dies on or after the effective date

3. PROPOSED TOD DEED REQUIREMENTS

If SB 651 / HB 738 is enacted, a valid Maryland TOD deed would likely require:

☐ Executed by the property owner (transferor) with legal capacity

☐ Acknowledged before a notary public or authorized officer

☐ Recorded among the land records of the county where the property is located

☐ Recorded BEFORE the death of the transferor

☐ Contains an express statement that the transfer is effective only at death

☐ Identifies the grantee beneficiary by name

☐ Contains a legal description of the real property

☐ Includes the transferor's notice acknowledgment as required by the Act

4. ALTERNATIVE ESTATE PLANNING METHODS

Until TOD deed legislation is enacted, Maryland property owners may use the following alternatives:

A. Revocable Living Trust

• Transfer property to a revocable trust during your lifetime
• Name beneficiaries to receive property upon your death
• Avoids probate entirely for trust assets
• Provides management during incapacity
• Cost: Higher upfront legal fees ($2,000–$4,000+)
• Benefit: Fully revocable; grantor retains control

B. Joint Tenancy with Right of Survivorship

• Add a co-owner to the deed with survivorship language
• Property passes automatically to the surviving owner at death
• Risk: Exposes property to co-owner's creditors, divorce, and judgments
• Risk: Loss of exclusive control during lifetime
• Risk: Potential gift tax consequences
• Maryland recognizes joint tenancy if the deed expressly creates it

C. Tenancy by the Entirety (Spouses Only)

• Available only to married couples in Maryland
• Property passes automatically to the surviving spouse
• Provides protection from individual creditors of one spouse
• Created automatically when married persons take title together (unless otherwise specified)

D. Life Estate Deed

• Transfer a remainder interest while retaining a life estate
• Property passes to the remainderman at death without probate
• Limitation: Transferor cannot sell or mortgage without remainderman's consent
• Limitation: Not easily revocable
• Note: SB 651 / HB 738 may provide enhanced treatment for certain life estate deeds with powers

E. Maryland Small Estate Procedures

• Estates valued at $50,000 or less ($100,000 if surviving spouse is sole heir) may use simplified administration
• Md. Code, Estates and Trusts Art. § 5-601 et seq.
• Limitation: Real property generally still requires some form of estate administration

5. COMPARISON OF ALTERNATIVES

6. DRAFT TOD DEED FORM (For Use ONLY If Enacted)

⚠ DO NOT RECORD THIS FORM UNTIL MARYLAND HAS ENACTED TOD DEED LEGISLATION. ⚠

TRANSFER-ON-DEATH DEED

Return recorded document to:
[________________________________]
[________________________________]
[________________________________]

Property Address:
[________________________________]
[________________________________]

Tax Account / SDAT ID Number: [________________________________]

THIS DEED IS A NONTESTAMENTARY INSTRUMENT EFFECTIVE ONLY UPON THE DEATH OF THE TRANSFEROR. THIS DEED DOES NOT TRANSFER OWNERSHIP UNTIL THE TRANSFEROR'S DEATH.

TRANSFEROR (Current Owner):

Name: [________________________________]
Address: [________________________________]
Date of Birth: [__/__/____]

BENEFICIARY DESIGNATION:

I, the undersigned Transferor, hereby designate the following individual(s) as beneficiary(ies) to receive the described real property, effective upon my death:

Primary Beneficiary(ies):

Alternate Beneficiary (if primary predeceases Transferor):

PROPERTY DESCRIPTION:

County/City: [________________________________], State of Maryland

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Being the same property conveyed to the Transferor by deed recorded among the Land Records of [________________________________] County/City at Liber [____], Folio [____] (or Instrument No. [________________________________]).

SDAT Tax Account Number: [________________________________]

TRANSFER-ON-DEATH DESIGNATION:

Pursuant to the Maryland Transfer-on-Death Deed Act, this deed shall transfer the Transferor's interest in the above-described real property to the designated Beneficiary(ies) effective upon the Transferor's death, subject to all encumbrances of record at the time of death.

This deed is REVOCABLE. The Transferor retains full power and authority to:

• Use, occupy, and enjoy the property
• Sell, lease, mortgage, or encumber the property
• Revoke this deed at any time before death

TRANSFEROR'S SIGNATURE:

Signature: ________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

ACKNOWLEDGMENT:

STATE OF MARYLAND
COUNTY/CITY OF [________________________________]

On this [____] day of [________________________________], [____], before me, the undersigned notary public, personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.

Witness my hand and official seal.

Notary Public: ________________________________________
My Commission Expires: [__/__/____]

[NOTARIAL SEAL]

7. STATE-SPECIFIC NOTES

Homestead Tax Credit

• Maryland provides a Homestead Tax Credit that limits annual assessment increases to 10% (or lower in some jurisdictions)
• A TOD deed should not affect the Homestead Tax Credit during the transferor's lifetime

Maryland Estate Tax

• Maryland imposes a state estate tax on estates exceeding $5 million (Md. Code, Tax-General Art. § 7-309)
• Maryland also imposes an inheritance tax on certain beneficiaries (Md. Code, Tax-General Art. § 7-203)
• Lineal descendants, spouses, parents, grandparents, stepchildren, and stepparents are exempt from inheritance tax
• Other beneficiaries pay 10% inheritance tax
• Consult a tax professional regarding estate and inheritance tax implications

Medicaid / Medical Assistance

• Maryland Medicaid estate recovery may apply to property transferred by TOD deed after the transferor's death
• A TOD deed does NOT protect property from Medicaid estate recovery
• Consult an elder law attorney for Medicaid planning

Recordation and Transfer Tax

• SB 651 / HB 738 proposes to EXEMPT TOD deeds from recordation and transfer taxes
• Under current law, Maryland charges recordation tax and transfer tax on real property conveyances

8. SOURCES AND REFERENCES

• Maryland SB 651 (2026 Session): mgaleg.maryland.gov
• Maryland HB 738 (2026 Session): mgaleg.maryland.gov
• Md. Code, Estates and Trusts Article: mgaleg.maryland.gov
• Md. Code, Tax-General Art. § 7-309 (Estate Tax)
• Md. Code, Tax-General Art. § 7-203 (Inheritance Tax)

This template is provided for informational and educational purposes only. It does not constitute legal advice. Transfer-on-death deeds are NOT currently authorized in Maryland. Consult a licensed Maryland attorney before executing any estate planning document.

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