Bill > HB625

This bill establishes a comprehensive framework for Transfer-on-Death (TOD) deeds in Maryland, allowing sole property owners to transfer real estate to a designated beneficiary upon their death without going through probate. The legislation creates a new legal mechanism where property owners can create a revocable deed that automatically transfers property ownership to a named beneficiary upon the owner's death, with several key provisions. The TOD deed can be easily revoked during the owner's lifetime and does not affect the owner's current property rights or ability to sell or encumber the property. The bill requires the deed to be recorded in the county where the property is located before the owner's death and provides standard forms for creating and revoking such deeds. Importantly, the transfer is nontestamentary, meaning it operates outside of the will, and the property transfers subject to existing security agreements. The bill also includes protections for beneficiaries, allowing them to disclaim the property if desired, and exempts TOD deeds from recordation and transfer taxes for primary and secondary residences. The Administrative Office of the Courts is required to develop an informational document to help laypeople understand the process, and the law is designed to be interpreted in alignment with existing property law. The legislation will take effect on October 1, 2025, and will apply to TOD deeds made before, on, or after that date, where the transferor dies on or after the effective date.

Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0625?ys=2025RS