Maryland state lawmakers are considering Senate Bill 651, introduced February 6, 2026, which would establish Transfer-on-Death (TOD) deeds for real property, allowing homeowners to designate beneficiaries who automatically receive the property upon the owner’s death without probate.
Sponsored by Senator Shaneka Henson (D), the bill creates the Maryland Transfer-on-Death Deed Act under Real Property Article Title 14, Subtitle 10. It outlines creation, revocation, recordation, and effects of TOD deeds; provides example forms; adjusts recording rules for circuit court clerks; and exempts qualifying TOD deeds from certain recordation and transfer taxes, particularly for primary or secondary residences.
Advocates, including AARP Maryland, argue the measure simplifies estate planning, cuts administrative costs, and promotes accessibility for seniors on fixed incomes. A 2024 survey indicated only half of Maryland seniors have a will. Sara Westrick, AARP Maryland advocacy director, stated: “One of the benefits to this legislation before the Maryland General Assembly is that it will allow people who may not have the means to prepare a will to still ensure that the possession of their home will pass to the people they intend.”
Westrick added that a will designates heirs but does not transfer deed ownership directly. Other mechanisms for non-probate transfer exist but often require costly legal work. She noted: “It’s helping to ensure a smoother transition of the ownership of their property from generation to generation. There are some other mechanisms in the state law that do that, but it’s quite expensive to hire the attorneys and to put together those legal instruments.”
For many Marylanders, home equity forms a major portion of net worth—45% median for homeowners in 2021 per Pew Research Center data. TOD deeds would bypass probate delays and expenses, aiding generational wealth transfer.
Opponents contend TOD deeds could diminish demand for estate planning attorneys. AARP counters that states with similar laws have seen no major impact on attorneys, as many TOD users lack wills anyway.
More than 30 states and territories offer TOD deeds, including neighboring Delaware, which enacted one last year.
The bill received a hearing February 26, 2026, before the Senate Judicial Proceedings Committee. It remains in committee with no further action reported. A companion measure, House Bill 738, was introduced February 3, 2026. If passed, the act would take effect October 1, 2026, with retroactive provisions for certain life estate deeds with powers where the transferor dies on or after that date.
The legislation addresses a gap in Maryland law, where probate often complicates home transfers, especially for modest estates. Supporters view it as a practical tool to reduce burdens and protect family assets.