In June 2026, Maryland enacted a new estate planning law that allows your home to be automatically transferred to your children upon your death without going through probate. This game-changing estate planning method will allow your family to save both time and money.
The benefits of a Transfer on Death Deed include:
- AFFORDABLE: Recording a Transfer on Death Deed costs a fraction of having a lawyer draft a traditional revocable Living Trust.
- EFFICIENT: Your home is automatically transferred to your children upon your death.
- CONTROL: You retain full ownership of your home during your life, and you can even revoke the Transfer on Death Deed.
- SAVINGS: It eliminates the time-consuming process and high cost of probating your home.
- PROTECTION: Because your children have no interest in your home during your lifetime, your children’s creditors cannot file liens or judgments against your home while you are alive.
- EXEMPTIONS: A Transfer on Death Deed is exempt from state and county transfer and recordation taxes, if the property is your primary or secondary residence.
Most spouses want to leave their home to the children in equal shares. Before 2026, Maryland spouses had to make a difficult choice between a Will and a revocable Living Trust. A Will is inexpensive, but probate can be time-consuming and an expensive process for your children. If your children retain an attorney, the statutory rate for compensation is $1,800 of the first $20,000 of the estate and 3.6% above $20,000. For example, if the value of your home is $600,000, your children will incur $22,680 in legal fees. The other option of retaining an attorney to draft a revocable Living Will and then re-titling the home in the name of the Living Trust is also expensive. Maryland attorneys charge upwards of $6,000 for a revocable Living Trust and then an additional fee to re-title your home.
A Transfer on Death Deed affords Maryland residents a third option that combines the advantages of a Will and a revocable Living Trust. Like a Will, a Transfer on Death Deed is an inexpensive estate planning method. Like a revocable Living Trust, a Transfer on Death Deed automatically transfers your home to your children upon the death of the surviving spouse, and your children avoid the time and expense of probating your home.
Another advantage of a Transfer on Death Deed is that you and spouse maintain absolute control of your home during your lifetime. You can sell your home, refinance your home, revoke the Transfer on Death Deed, or even record a different Transfer on Death Deed. Recording a Transfer on Death Deed is exempt from state and county transfer and recordation taxes, if the property is your primary or secondary residence.
If you are single and have children, a Transfer on Death Deed affords the same time and money-saving advantages.
Please contact to Stewart A. Sutton to discuss whether you and your spouse should take advantage of this new money-saving estate planning method by recording a Transfer on Death Deed. Your children will thank you for keeping your most valuable asset out of probate.
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