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How to Avoid Probate in Maryland
Pillar GuideMaryland11 min read

How to Avoid Probate in Maryland

How to avoid probate in Maryland with a revocable living trust, tenancy by the entirety, joint survivorship, POD and TOD accounts, and the small estate track.

By Settled Editorial

The short answer: in Maryland, an asset skips probate when its title or a beneficiary form names who receives it, not the will. That covers property held in a revocable living trust, real estate and accounts held with right of survivorship or as tenants by the entirety, payable-on-death bank accounts, transfer-on-death securities registrations, and named beneficiaries on retirement plans and life insurance. Solely owned property with no beneficiary path is what runs through the Register of Wills and the Orphans' Court.

Maryland probate runs through two offices in each of its 24 jurisdictions. The elected Register of Wills opens the estate and holds the records, and the three-judge Orphans' Court supervises the administration. Keeping an asset out of that process is a planning question you settle while you are alive, by how you title property and who you name on each account. Use this guide as a planning map, not legal advice. Start with the Maryland probate guide for how the process works, and the Maryland Register of Wills directory to find the office for your county or Baltimore City.

First, A Maryland Reality Check On Taxes

Before you plan around probate, plan around Maryland's two death taxes, because avoiding probate does not avoid either one.

Maryland is the only state that charges both a state estate tax and a state inheritance tax. The estate tax applies above a $5,000,000 exemption that has been fixed since 2019 and is not indexed, with a top rate of 16% (Md. Code, Tax-General Title 7, Subtitle 3). The inheritance tax is 10% of the clear value of property passing to a person who is not exempt (Tax-General 7-204). A spouse, children and other lineal descendants, parents, grandparents, and siblings are exempt (Tax-General 7-203). A gift to a niece, cousin, or friend owes the 10%.

Here is the trap. A trust distribution, a POD account, or a survivorship deed keeps an asset out of the Orphans' Court, but it does not erase the inheritance tax on a transfer to a non-exempt taker, and the estate reports those non-probate transfers to the Register of Wills on the information report filed with the inventory (Est. and Trusts 7-201). Plan for who receives, not just how they receive it. See the Maryland estate and inheritance tax guide for the full picture.

The other honest point: Maryland's probate fee is modest. The Register of Wills collects a statewide value-based fee under Est. and Trusts 2-206, and estates under $50,000 pay $0. So in Maryland the case for avoidance leans on privacy, speed, incapacity planning, and keeping a house out of a two-office court process, more than on a large filing bill.

Revocable Living Trusts

A revocable living trust holds your assets during life and passes them to your named beneficiaries at death without probate. You stay in control as trustee, you can change or revoke it anytime, and a successor trustee takes over when you die or lose capacity. Maryland trusts run under the Maryland Trust Act, Est. and Trusts Title 14.5.

A trust only avoids probate for assets you actually retitle into it, which planners call funding. An unfunded trust does nothing, so the deed, account, and title changes have to happen. Because Maryland has no operative real-property transfer-on-death deed yet, the trust is the main tool for keeping a house out of probate, and it also avoids a second probate when you own property in more than one state. The Maryland revocable living trust guide compares a trust against a plain will.

Joint Ownership And Tenancy By The Entirety

Property held with a right of survivorship passes to the surviving owner at death, outside probate. Married couples in Maryland can hold real estate and accounts as tenants by the entirety, which carries survivorship and shields the property from one spouse's separate creditors during life. Unmarried co-owners can hold as joint tenants with right of survivorship.

Read the wording first. The deed or account has to state the survivorship right; a plain tenancy in common gives each owner a share that passes through the estate. Survivorship is easy to set up and free, but it has tradeoffs. Adding a co-owner gives that person present rights, exposes the asset to their creditors and a divorce, and can cut out people you meant to include. Use it with care, not as a blanket fix.

Payable-On-Death And Transfer-On-Death Accounts

A payable-on-death (POD) designation on a bank account, and a transfer-on-death (TOD) registration on a brokerage or investment account, name who receives the money at death. The bank or broker pays the named person directly after proof of death, and the account stays fully yours while you are alive.

Maryland authorizes both. Bank POD and multiple-party accounts run under Md. Code, Financial Institutions 1-204: POD funds pass to the living POD payees, and survivorship funds pass to the surviving parties, outside probate. Securities registered in beneficiary form pass under Est. and Trusts 16-109, which states that the transfer happens by contract and is not testamentary. These forms are free where you hold the account and easy to update.

Two cautions. A POD or TOD beneficiary takes the whole account regardless of what your will says, so keep the forms and the will in sync. And if every named beneficiary dies before you, the account can fall back into the probate estate, so name a backup. The Maryland executor duties guide explains how these non-probate assets still get reported for the inheritance tax.

Beneficiary Designations On Retirement And Life Insurance

Retirement accounts and life insurance pass by the beneficiary form on file with the plan or insurer, not by your will. A 401(k), IRA, pension, or policy with a living named beneficiary pays that person directly and skips probate.

This is contract money. The named beneficiary controls even when the will says something else, so review these forms after any marriage, divorce, birth, or death, and name a contingent beneficiary in case the first one dies before you. A stale or blank beneficiary form is a common reason these assets drop into probate by accident.

Real Estate: No Transfer-On-Death Deed Yet

For a death before October 1, 2026, Maryland has no operative transfer-on-death deed. So the way to keep a house out of probate right now is a revocable living trust or survivorship titling, meaning tenancy by the entirety for spouses or joint tenancy with right of survivorship for other co-owners. Do not rely on a Maryland transfer-on-death deed for a death before that date.

Here is the dated part to watch. Maryland enacted a real-property transfer-on-death deed in 2026 (Chapter 751, House Bill 738) that takes effect October 1, 2026 and will apply to owners who die on or after that date. Until it is in force and the recording details settle, treat a trust or survivorship titling as your working option, and confirm the current rule with the Clerk of the Circuit Court land records or a Maryland attorney before you record anything. When real estate does pass through an estate, the selling inherited property in Maryland guide covers clearing title.

The Small Estate Track For What Is Left

Even for assets with no beneficiary path, Maryland offers a shorter route than full administration. Under Est. and Trusts 5-601, an estate can be handled as a small estate when the property subject to administration is $50,000 or less as of the date of death, or $100,000 or less when the surviving spouse is the sole legatee or heir. The Register of Wills handles the small estate, and it usually avoids the longer regular administration and rarely needs an Orphans' Court appearance.

This is a lighter process, not a full bypass. Debts still get paid, and the inheritance tax still applies to a non-exempt taker. It is worth knowing as the cleanup path for whatever your titling and beneficiary forms do not cover.

Incapacity Planning Belongs With Avoidance

Keeping assets out of probate handles what happens at death. Planning for incapacity handles what happens if you cannot act while alive. A durable power of attorney under Est. and Trusts Title 17 lets an agent manage your money, and a Maryland advance directive under the Health Care Decisions Act lets an agent make medical decisions. Without them, your family may have to open a guardianship through the Orphans' Court, which is the court outcome most avoidance plans are meant to head off.

Putting It Together

Most Maryland families can keep the majority of an estate out of probate with a short checklist:

  1. Confirm POD and TOD beneficiaries on bank and investment accounts.
  2. Review beneficiary forms on every retirement account and life insurance policy, and name a backup.
  3. Check survivorship or tenancy-by-the-entirety wording on deeds and accounts you intend to pass automatically.
  4. Consider a revocable living trust for real estate, out-of-state property, or privacy, and fund it.
  5. Know the $50,000 or $100,000 small estate track for whatever is left.
  6. Pair the plan with a durable power of attorney and an advance directive, and remember the inheritance tax on non-exempt takers.

Confirm each step with the bank, the broker, the Clerk of the Circuit Court, the Register of Wills, or a Maryland attorney before you sign or record anything. This guide is a planning map, and a lawyer can advise on which tools fit your family, your debts, and your goals.

Common Questions

Does a living trust avoid the Maryland inheritance tax?

No. A trust keeps assets out of the Orphans' Court, but property passing to a non-exempt taker still owes the 10% Maryland inheritance tax under Tax-General 7-204. A spouse, children and other lineal descendants, parents, grandparents, and siblings are exempt.

Does Maryland have a transfer-on-death deed for a house?

Not for a death before October 1, 2026. Maryland enacted a transfer-on-death deed in 2026 (Chapter 751) that takes effect October 1, 2026 for owners who die on or after that date. Until then, use a revocable living trust or survivorship titling to keep a house out of probate.

What is the small estate limit in Maryland?

An estate qualifies as a small estate when the property subject to administration is $50,000 or less, or $100,000 or less when the surviving spouse is the sole legatee or heir, under Estates and Trusts 5-601.

Do payable-on-death accounts override my will?

Yes. A POD or TOD beneficiary takes the account by contract, not under the will, so the beneficiary form controls. Review your forms after any major family change and keep them in step with your will.

Is joint ownership a safe way to avoid probate?

It can pass property to the survivor, but adding a co-owner gives that person present rights, exposes the asset to their creditors, and can cut out other heirs. Weigh it against a trust or a beneficiary designation before you retitle anything.

This guide is general information about Maryland estates. It is not legal advice. Confirm anything that affects your situation with the Register of Wills, the Clerk of the Circuit Court, or a licensed Maryland attorney.

Sources:

It is not legal advice.

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Information current as of July 21, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in Maryland can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.

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