Exciting News

Big News This Week

This was an especially exciting week for me, for two reasons: my office moved, and Maryland homeowners gained a simple new way to pass their homes to loved ones outside of probate.

A New Office on K Street

The Law Office of Benjamin Schenker now has a new address on K Street in Northwest D.C 1717 K St., Ste. 900 (by appointment only)

I didn't move here to become a "K Street lawyer." I moved for convenience, and this location delivers it. It's near major banks and, most importantly, only a block from a Red Line Metro stop.

If you'd like to meet, you have options. We can meet in person at the new office, I can come to you, or we can meet virtually, just as before.

Maryland's New Transfer-on-Death Deed

As of October 1, 2026, Maryland homeowners can use a transfer-on-death deed (TODD) to leave real property to a named beneficiary without probate. The law, House Bill 738 (Chapter 751 of 2026), is codified at Sections 14-1001 through 14-1014 of the Real Property Article. It is Maryland's version of the Uniform Real Property Transfer on Death Act, already used in many other states. (In D.C., the rules are codified at §§19-604.01 through 19-604.19).

A TODD has no effect while you are alive. You keep full ownership of your home, and you can revoke the deed at any time. When you die, the property passes directly to your named beneficiary.

To be effective, the deed must be signed, notarized, and recorded in the land records before your death. The beneficiary takes the property subject to any mortgage or lien still attached to it.

This helps avoid one of the more arduous parts of probate. Normally, a house titled in the deceased person's sole name passes through the estate, and the personal representative must prepare and record a new deed to transfer it to the heirs. A TODD lets the house pass automatically, saving that time and expense.

The statute includes example forms. That matters for access to justice: a homeowner may be able to accomplish with a form what once required hiring a lawyer.

How a TODD Differs from a Life Estate Deed

Before this law, the usual way to keep a Maryland home out of probate was a life estate deed (or joint tenancy or tenancy by the entirety). You keep the right to live in the home for life (as the "life tenant"), and the property passes at death to the "remainderman" or "remaindermen" you name. A life estate can be complex to draft and generally calls for an attorney.

The key difference is timing. A life estate creates new interests immediately. Once a traditional life estate is in place, the remaindermen already own a future interest, so you cannot sell or mortgage the property without their consent.

A TODD gives the beneficiary nothing until your death. You can sell the home, refinance it, or revoke the deed entirely, with no one's permission.

Traditional life estate deed

Transfer-on-death deed

When the beneficiary gets an interest

Immediately

Only at your death

Sell or mortgage during your life

Needs remaindermen's consent

Yes, on your own

Revocable

No

Yes, any time

Avoids probate

Yes

Yes

Typical preparation

Attorney

Statutory form available

Maryland also recognizes a life estate deed "with powers," which lets the owner keep the right to sell or mortgage. It works much like a TODD, but it still has to be drafted carefully.

A TODD Avoids Probate, Not Inheritance Tax

It's crucial to note that avoiding probate is not the same as avoiding tax. Maryland's 10% inheritance tax applies to property passing at death whether or not it goes through probate.

Close relatives are exempt. These include a spouse, children and other lineal descendants (and their spouses), parents, grandparents, siblings, stepchildren, and stepparents. If your TODD beneficiary is a niece, nephew, friend, or partner you are not married to, the property may still be subject to inheritance tax, even though it skips probate.

A life estate deed works the same way here. Neither one changes whether inheritance tax is owed.

What About Medicaid Long-Term Care?

Another significant issue is eligibility for Medicaid long-term care, governed by federal law at 42 U.S.C. § 1396p.

First, a quick distinction. Medicare is federal health insurance for people 65 and older and for certain younger people with disabilities; it is run by the federal government and covers only limited nursing home care. Medicaid provides assistance to people with low income and few assets, and it is administered jointly by the federal and state governments. Medicaid is what pays for most long-term nursing home care.

Because Medicaid is need-based, the law prevents people from qualifying simply by giving their property away. Under 42 U.S.C. § 1396p(c), Medicaid looks back five years for transfers made for less than fair market value, such as gifts. A transfer inside that window triggers a penalty period during which Medicaid will not pay for long-term care.

This is where the two deeds part ways. Creating a life estate is a completed gift of the remainder interest, so it can trigger the lookback penalty. A TODD gives away nothing during your life: you keep full ownership and can revoke it. Signing one should therefore not count as a transfer for lookback purposes.

There is a catch at the other end. Under 42 U.S.C. § 1396p(b), states must try to recover what Medicaid spent on long-term care from the estates of certain recipients after they die. A TODD does not prevent Maryland from pursuing an estate recovery claim against the property. Anyone receiving or expecting to need Medicaid should get advice before relying on a TODD.

Is a TODD Right for You?

For many homeowners, a TODD will be a simple, low-cost way to pass a home to family and spare them a probate step. It could be a real boon for people who can't afford full-service estate planning.

It isn't right for everyone, though. A TODD controls the house even if your will says something different, so the two need to work together. Medicaid, inheritance tax, multiple beneficiaries, and mortgages can all complicate the picture.

That's where limited-scope help fits. You don't need to hire me for your whole estate plan; I can simply review a TODD you've prepared, or I can prepare it for you. To set up a meeting at the new K Street office, at your location, or virtually, email me at ben@mdschenkerlaw.com or call (202)753-5040.

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This post is for general information only and is not legal advice for your situation.