Maryland has joined Virginia and the District of Columbia in allowing homeowners to name a transfer on death beneficiary for their real property. Starting October 1, 2026, Maryland homeowners will be able to record a Transfer on Death Deed (TODD) under the new Maryland Transfer-on-Death Deed Act, giving families in all three jurisdictions — Virginia, DC, and now Maryland — access to this simple, low-cost estate planning tool.
What Is a Transfer on Death Deed?
A TODD is a less formal, less expensive way to plan for the transfer of a home than creating a Will or a Trust. For many families, the home is their most valuable asset, so having an efficient way to pass it on can make a meaningful difference in the estate planning process.
With a TODD, the property transfer occurs only upon the owner’s death. Until then, the beneficiary has no ownership interest in the property — the deed doesn’t grant the beneficiary any rights, and it doesn’t affect the owner’s ability to sell, mortgage, or otherwise deal with the property during their lifetime.
Key Features of Maryland’s New Law
Recording despite liens. A TODD can be recorded even if there are liens against the property, such as unpaid utility or tax bills. Unlike most deeds, no lien certificate is required before recording.
Revocable, no matter what the deed says. Maryland’s statute makes clear that a TODD is revocable even if the deed itself contains language suggesting otherwise. This built-in protection helps guard against fraud.
Must be recorded before death. To be effective, the deed must be recorded in the land records of the county where the property is located prior to the owner’s death.
No limit on beneficiaries. There’s no cap on how many people can be named as TODD beneficiaries. A trust or trustee can be named as a beneficiary, and while a charity technically can be named as well, it’s generally not recommended.
Default co-ownership rules. When multiple beneficiaries are named without specifying a form of ownership, Maryland’s law defaults to joint tenants with rights of survivorship — different from the tenants-in-common default used for other types of deeds, like a Life Estate Deed.
Beneficiary must outlive the owner. A beneficiary has to survive the owner for the transfer to take effect. If the named beneficiary predeceases the owner and no alternate beneficiary was named, the property reverts to the owner’s estate and passes through probate.
Tax and Assessment Treatment
A TODD has no impact on inheritance taxes, but there is good news on the tax side: the beneficiary receives a step-up in basis, which can meaningfully reduce capital gains exposure if the property is later sold.
Primary and secondary residences transferred by TODD are exempt from recordation and transfer taxes.
On the assessment side, the property won’t be reflected as belonging to the new owner in the State Department of Assessments and Taxation (SDAT) records until a Notification of Death form is recorded after the owner’s death. In the meantime, the TODD itself remains visible in the county’s land records.
A Major Advantage for Medicaid Planning
One of the biggest benefits of a TODD is how it’s treated for Medicaid purposes. Because there’s a presumption of intent to return home, the property is exempt and is not considered part of the Medicaid applicant’s countable assets — meaning it generally isn’t treated as part of the estate the way a Life Estate Deed with Powers can be. For Medicaid planning purposes, a TODD is generally the clear winner over a Life Estate Deed under Md. Code, Real Property § 14-1014.
One caveat: a TODD does not necessarily avoid a TEFRA lien, so this is an area where it still pays to talk through the details with an attorney.
When a Life Estate Deed May Still Make Sense
The main drawback of a TODD is that it isn’t effective until it’s actually recorded — and recording can take a few months in some counties (Baltimore City, for example). If death is imminent, a Life Estate Deed may be the more appropriate tool, since it can be put in place more quickly.
The deed must also state clearly that the transfer is to occur only upon the owner’s death.
An Important Wrinkle: Marriage, Divorce, and Children
Here’s a detail that surprises many people: a TODD naming a spouse as beneficiary is automatically revoked if the owner later divorces or has the marriage annulled. Likewise, if an owner records a TODD naming any beneficiary and later marries and has children with a future spouse — whether by birth, adoption, or legitimation — the TODD is automatically revoked.
In other words, major life changes can undo a TODD without the owner taking any additional action. This makes it especially important to revisit your estate plan, including any TODD, after a marriage, divorce, or the birth or adoption of a child.
The Bottom Line
With Maryland’s law taking effect October 1, 2026, homeowners across Virginia, DC, and Maryland now have access to Transfer on Death Deeds as a straightforward, affordable way to pass real property to loved ones outside of probate. Like any estate planning tool, though, a TODD isn’t right for every situation — particularly where there are multiple owners, blended families, or health circumstances suggesting death may be imminent. If you’re considering a TODD as part of your estate plan, it’s worth talking with an attorney to make sure it fits your overall goals.
This article is for general informational purposes only and does not constitute legal advice. Please consult with an estate planning attorney regarding your specific situation.
