Maryland's Newest Estate Planning Tool Is Here!
Effective October 1, 2026, Maryland property owners have a brand-new option for passing real estate to their loved ones. The Maryland Transfer-on-Death Deed Act, enacted by the Maryland General Assembly in 2026, allows qualifying property owners to name beneficiaries who will receive their real estate upon their death, without requiring a lifetime transfer of ownership.
The Law Office of Gregory C. Reynolds is embracing this important development in Maryland real estate and estate planning law. We began preparing attorney-drafted Transfer on Death Deeds shortly after the new law took effect, bringing this innovative option to Maryland homeowners.
With extensive experience preparing Maryland deeds, estate planning documents, and real estate instruments, Gregory C. Reynolds, Esq. is committed to staying at the forefront of changes in Maryland property law.
The big advantage: You can arrange for your property to pass to your chosen beneficiaries after your death while remaining the owner during your lifetime. For many homeowners, this can provide a straightforward way to avoid probate of the property.
What Is a Maryland Transfer on Death Deed?
A Transfer on Death Deed, commonly called a TOD Deed, is a deed that identifies one or more beneficiaries who are to receive your interest in real property when you die.
Unlike an ordinary deed transferring ownership immediately, a properly executed and recorded TOD Deed does not give the beneficiaries a present ownership interest in your property.
You continue to own the property during your lifetime. The transfer occurs at your death, subject to the requirements and limitations of Maryland law.
The Benefits of a Transfer on Death Deed
- Avoid Probate of the Property. A properly prepared TOD Deed can transfer real estate directly to the designated beneficiaries at death, without passing title through the probate estate.
- Retain Ownership and Control. You remain the owner during your lifetime and retain your rights to use, sell, or mortgage the property.
- Change Your Mind. Maryland law permits you to revoke or replace a TOD Deed during your lifetime by following the required legal procedures.
- No Immediate Gift of Ownership. Your designated beneficiaries do not become co-owners merely because you record a TOD Deed.
- Designate Family Members or Other Beneficiaries. Depending on your circumstances, you can designate children, grandchildren, siblings, or other eligible beneficiaries.
- A Potentially Simpler Estate Plan. For some property owners, a TOD Deed can accomplish an important estate planning goal without requiring a trust solely to transfer the property.
How Does a Maryland TOD Deed Work?
The process begins by reviewing your current deed, identifying the ownership interest involved, and discussing who you want to receive the property.
We then prepare a deed that complies with Maryland's new Transfer-on-Death Deed Act, including the appropriate beneficiary designations, property description, and execution requirements.
The deed must be properly recorded in the land records before the owner's death. Merely signing a TOD Deed and leaving it in a drawer is not enough.
Once properly recorded, the deed generally remains revocable during the owner's lifetime. Upon the owner's death, the property interest transfers as provided by the deed and applicable Maryland law.
Why Have an Attorney Prepare Your TOD Deed?
Although Maryland provides a statutory form for Transfer on Death Deeds, every family's circumstances are different. The way beneficiaries are named can have significant consequences, particularly if a beneficiary dies before the property owner.
Questions involving multiple beneficiaries, survivorship, alternate beneficiaries, existing mortgages, marital ownership, and prior deeds deserve careful attention.
At the Law Office of Gregory C. Reynolds, your deed is prepared by a Maryland attorney who regularly handles real estate conveyancing and estate planning. We don't simply insert names into a generic form.
Our goal is to prepare an instrument that accurately reflects your wishes and minimizes the potential for confusion or title problems down the road.
Transfer on Death Deed vs. Life Estate Deed
Before the new legislation, Maryland property owners frequently used Life Estate Deeds, including life estates with retained powers, to arrange for real estate to pass outside probate.
Life Estate Deeds remain useful estate planning tools. However, Maryland's new Transfer on Death Deed provides another option that may be particularly attractive to owners who want to retain their ownership rights without creating an immediate remainder interest.
We prepare both types of deeds and can help you evaluate which approach best fits your situation.
What About Mortgages and Existing Liens?
A Transfer on Death Deed does not erase a mortgage, judgment lien, or other valid encumbrance. Beneficiaries generally receive the property subject to applicable existing interests and obligations.
Likewise, a TOD Deed is not a substitute for a complete estate plan in every situation. We can discuss how the deed fits with your Will, Trust, and other planning documents.
Maryland TOD Deeds and Transfer Taxes
Maryland's new legislation also provides exemptions from certain recordation and transfer taxes for qualifying Transfer on Death Deeds involving a primary or secondary residence.
Whether an exemption applies depends on the property and the statutory requirements. Ordinary recording and processing charges may still apply.
Get Started With a Maryland TOD Deed
Maryland's new law represents an important opportunity for homeowners who want to simplify the eventual transfer of their property to loved ones.
The Law Office of Gregory C. Reynolds is proud to be an early adopter of this new estate planning option and to offer professionally prepared Transfer on Death Deeds to Maryland property owners.
Call us today for a free consultation to discuss whether a Transfer on Death Deed is right for you.
Ready to Prepare Your Maryland TOD Deed?
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