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HB 625

Real Property - Transfer-on-Death Deed - Establishment

2025 Regular Session Introduced by Terri Hill and 2 co-sponsors

HB 625 creates transfer-on-death deeds in Maryland, allowing property owners to designate beneficiaries who inherit real estate automatically upon death, bypassing probate court.

Hearing 2/12 at 1:00 p.m. (Judiciary)
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Bill Summary · HB 625

Legislative bill overview

HB 625 would establish transfer-on-death (TOD) deeds in Maryland, allowing property owners to designate beneficiaries who automatically receive real property upon the owner's death without going through probate. The deed takes effect only at death and can be revoked or modified by the property owner at any time during their lifetime.

Why is this important

TOD deeds offer a simplified, lower-cost alternative to traditional estate planning methods like wills or trusts for transferring property. This can be particularly beneficial for lower and middle-income Marylanders who cannot afford extensive legal services, while reducing court system burden and probate delays.

Potential points of contention

  • Creditor protections: Questions about whether creditors can pursue TOD property to satisfy the deceased's debts, and how this interacts with existing creditor rights in probate
  • Title clarity concerns: Potential complications if the named beneficiary dies before the property owner, or disputes over proper deed execution and validity
  • Tax implications: Uncertainty about federal and state estate tax treatment, capital gains basis stepped-up valuation, and whether TOD deeds trigger any transfer taxes
  • Scope and safeguards: Whether the bill includes adequate protections against elder abuse, undue influence, or fraud in designating beneficiaries

Compiled from official sources — confirm details with the bill’s official record.

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