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Transferring a Deed Into a Trust in Maryland: Pros and Cons

Yollette Atkinson Feb. 11, 2026

If you own real estate in Maryland and have created a revocable living trust as part of your estate plan, one common next step is transferring (or “funding”) your property into that trust.  While this can be a smart planning move, it’s not always the right choice for every situation.  Below is a clear overview of how deed transfers into a trust work in Maryland, along with the key advantages and disadvantages to consider.

What Does It Mean to Transfer a Deed Into a Trust?

Transferring a deed into a trust means changing the legal owner of your property from your individual name to the name of your trust.  For example, ownership might change from:

Jane Doe
to
Jane Doe, Trustee of the Jane Doe Revocable Trust dated February 1, 2026

You still control the property as trustee, but legally, the trust becomes the owner.

The Pros of Transferring Property Into a Trust in Maryland

1. Avoids Probate for Real Estate

One of the biggest benefits is probate avoidance.  In Maryland, probate can be time-consuming and public.  Property held in a properly funded trust typically passes directly to beneficiaries without going through probate court.

2. Continuity During Incapacity

If you become incapacitated, your successor trustee can manage or sell the property without the need for a court-appointed guardian.  This can save time, legal fees, and stress for your family.

3. Privacy

Probate filings are public record in Maryland.  Trust administration is private, so details about your property and beneficiaries remain confidential.

4. Simplifies Multi-Property or Out-of-State Ownership

If you own multiple properties—or property outside Maryland—placing them in a trust can avoid ancillary probate in other states.

5. No Maryland Transfer Tax for Revocable Trusts (Typically)

In most cases, transferring property into your own revocable living trust is exempt from Maryland transfer and recordation taxes, as long as you remain the beneficiary during your lifetime.

The Cons of Transferring Property Into a Trust in Maryland

1. Upfront Legal and Administrative Costs

Preparing a new deed, ensuring proper trust language, and recording it with the county land records involves legal fees and filing costs.

2. Financing and Mortgage Concerns

Some lenders may require notice or consent before transferring property into a trust.  While federal law generally protects transfers into revocable trusts for primary residences, it’s still important to review your mortgage terms.

3. Title Insurance and Refinancing Issues

Refinancing or selling property held in a trust can sometimes involve extra steps or documentation, especially if the trust was not drafted or funded correctly.

4. Homestead and Property Tax Considerations

Maryland homeowners receiving homestead or principal residence tax benefits must ensure the trust transfer does not disrupt those benefits.  Errors in filing can cause temporary tax issues.

5. Not Always Necessary for Small or Simple Estates

If your estate is modest or your real estate passes easily through other planning tools, a trust-based deed transfer may offer limited additional benefit.

Important Maryland-Specific Considerations

  • Proper Deed Type Matters: Most transfers into a trust use a new deed.  The wrong deed language can create title problems down the road.

  • Land Records Filing: The deed must be recorded in the county where the property is located.

  • Trust Language Must Be Precise: The trust must be named exactly right on the deed.  Errors in naming the trust or trustee can cause title defects later.

  • Legal Advice Is Strongly Recommended: Maryland property and estate laws intersect in ways that make DIY transfers risky.  Hence we strongly recommend professional guidance for deed transfers, as details matter.

Is Transferring Your Deed Into a Trust Right for You?

For many Maryland homeowners, transferring real estate into a revocable living trust is a powerful estate planning tool—especially when probate avoidance, privacy, and incapacity planning are priorities.  However, it’s not a one-size-fits-all solution.  The decision should be based on your overall estate plan, property type, and long-term goals.

The key is making sure your trust and your deed actually work together.   A trust that isn’t properly funded often provides a false sense of security.

Final Thought

A trust only works if it’s properly funded.  If you’ve created a trust, but haven’t transferred your deed, your estate plan may not function as intended.  A qualified Maryland estate planning attorney can help ensure your deed transfer is done correctly and aligns with your broader financial and legal strategy.

At Atkinson Law, we listen to all our clients and protect their interests so they can receive a positive outcome.  We’ll work with you and give you the best possible recommendation for your future.  To learn more about Deeds, contact us today by calling (410) 882-9595 or visiting our website.