Maryland’s New Transfer on Death Deed Effective October 1, 2025: What Homeowners Need to Know

Planning for what happens to your home after your death can be difficult and for many Maryland homeowners the goal is simple to make things easier for loved ones and avoid probate if possible.

As of October 1, 2025 Maryland law now allows a new estate planning tool for real property known as the Transfer on Death Deed also commonly called a Maryland TOD Deed. This change was enacted through House Bill 625 ending Maryland’s long-standing prohibition on transfer on death deeds for real estate.

At CDeeds we focus exclusively on Maryland deed preparation and recording. Here is what you should know about how a Maryland Transfer on Death Deed works and why professional guidance matters.

What Is a Transfer on Death Deed

A Transfer on Death Deed allows a Maryland property owner to name one or more beneficiaries who will automatically receive the property upon the owner’s death without the property passing through probate.

During your lifetime you remain the full legal owner of the property. You may revoke or change the deed at any time. You may still sell refinance mortgage or otherwise transfer the property.

The transfer occurs only after death and only if the Maryland TOD deed was properly prepared and recorded in the county land records before death.

How a Transfer on Death Deed Works

A Maryland TOD Deed names the person or people who will receive your home after your death. Until then nothing changes.

You keep complete ownership and control of the property.
The beneficiaries have no present rights.
Upon death the property passes directly to the surviving named beneficiaries.

When done correctly a transfer on death deed in Maryland may allow real property to avoid probate.

Benefits of a Transfer on Death Deed

For some Maryland homeowners a TOD deed offers several benefits.

• It allows planning for your home during your lifetime.
• It can be canceled or changed at any time.
• It may allow heirs to avoid probate in Maryland.
• You retain full ownership and control of your property.
• You may keep senior homeowner tax benefits.
• Unlike a will a recorded Maryland deed cannot be lost or destroyed.

Disadvantages and Special Considerations

Transfer on Death Deeds are not appropriate in every situation and important limitations should be understood before using one.

Ownership Requirements

Your current Maryland real property deed must show that you have an ownership interest in the property.

Joint Ownership Issues

If you own property as joint tenants a Maryland TOD deed may never take effect. If you die first the property automatically passes to the surviving joint tenant regardless of what the TOD deed states.

Multiple Beneficiaries

If one beneficiary dies before you the surviving beneficiary will typically inherit the entire property. The deceased beneficiary’s children do not automatically inherit their parent’s share unless the deed is revoked and changed.

Spousal Considerations

If you are married but your spouse is not on the deed and you name someone else as beneficiary your spouse may not have a legal claim to the property. A transfer on death deed is not part of your Last Will and Testament.

Incapacity Planning

If you become incapacitated you cannot personally revoke the TOD deed. A properly drafted power of attorney with authority over Maryland real estate may still allow a sale or transfer during your lifetime for your benefit.

How to Create a Transfer on Death Deed in Maryland

A valid Maryland Transfer on Death Deed must be in writing notarized and recorded in the county land records before the owner’s death.

• It must include the names and addresses of all property owners.
• It must include the full legal description of the property.
• It must name the beneficiary or beneficiaries.
• It must clearly state that the transfer occurs at death.
• It must be signed and dated by the owner.

Maryland law requires the Administrative Office of the Courts to publish sample forms but those forms are examples only and are not a guarantee that the deed is legally effective.

Why DIY Transfer on Death Deed Forms Can Be Risky

Because Transfer on Death Deeds are new in Maryland many homeowners search online for free or official looking DIY forms. While this may seem simple DIY Maryland TOD deeds carry real risks.

Common issues include incorrect legal descriptions copied from tax records instead of prior recorded deeds. Improper beneficiary designations that do not reflect true intent. Deeds that conflict with joint ownership or spousal rights. Missing or incorrect statutory language. Recording errors that render the deed ineffective. Failure to coordinate the TOD deed with powers of attorney wills or trusts.

If a Maryland TOD deed is defective it may be challenged ignored or rejected after death forcing the property into probate anyway. Unlike mistakes in a will deed errors are not easily fixed once the owner has passed.

Why Work With a Professional Like CDeeds

At CDeeds we do more than fill in blanks on a form.

• We review your existing Maryland deed and ownership structure.
• We ensure the transfer on death deed complies with Maryland law.
• We confirm the legal description is accurate.
• We help you understand beneficiary and spousal implications.
• We coordinate the deed with your broader estate plan.
• We properly prepare and record the deed in the correct Maryland land records.

Our goal is clarity protection and peace of mind not just a recorded document.

Is a Transfer on Death Deed Right for You

A Maryland Transfer on Death Deed can be a helpful planning tool in the right circumstances but it is not a substitute for comprehensive estate planning and should never be created in isolation. Understanding how it interacts with your family structure ownership rights and incapacity planning is critical.

How CDeeds Can Help

CDeeds focuses exclusively on Maryland deed preparation and recording. Whether you are considering a Transfer on Death Deed or exploring other deed based planning strategies we help ensure your documents are prepared intentionally and correctly the first time.

CDeeds Maryland Deeds Done Right