Avoiding Probate in Maryland: 5 Proven Strategies for Homeowners

You worked hard to build your home and legacy. But without the right legal tools in place, your family could face months of court delays, legal fees, and public proceedings—just to receive what you intended to leave them.

In Maryland, even if your home has a mortgage, its full value is counted toward probate. The result? A home worth $500,000 (with $400,000 owed) could trigger thousands in court and legal fees.

The good news? You can take steps right now to reduce or avoid probate altogether. Here are five proven strategies for Maryland homeowners to protect their families and pass down their assets more efficiently.

✅ 1. Create a Revocable Living Trust

The most comprehensive way to avoid probate in Maryland is by creating a revocable living trust and transferring your home and other assets into it.

Here’s how it works:

• You (the “grantor”) create a trust and name yourself as trustee.
• You retitle your home and assets into the trust’s name.
• Upon your death, the trust continues privately—without court involvement—and your successor trustee distributes assets according to your instructions.

Benefits:

• Avoids probate completely
• Speeds up inheritance
• Keeps your plan private
• Useful if you own property in multiple states

⚠️ Note: A trust must be properly funded (assets retitled) to work. Simply signing a trust document without changing asset titles won’t avoid probate.


✅ 2. Use Maryland’s Tenants by the Entirety (TBE) Protection

If you're married and own your home jointly with your spouse, titling the property as "tenants by the entirety" allows the surviving spouse to automatically inherit the home outside of probate.

Key facts:

• Available only to married couples
• Property passes by operation of law
• Still subject to probate after second spouse’s death unless trust planning is in place

This is a great short-term strategy for couples—but shouldn’t be your only solution and has its downsides.

✅ 3. Add a Transfer-on-Death (TOD) Deed (Where Available)

While Maryland does not currently allow full transfer-on-death deeds for real estate (unlike some other states), certain financial accounts—such as bank accounts, retirement accounts, and investment accounts—can be set up with TOD or POD (payable on death) designations.

Make sure to:

• Review all account titles and beneficiaries
• Update designations after marriage, divorce, or births
• Coordinate these accounts with your overall estate plan to avoid unintended conflicts

✅ 4. Consider Maryland’s Small Estate Process

Maryland offers a simplified probate process for “small estates,” which can be helpful if you plan in advance.

As of 2025, the small estate threshold is:

• $50,000 in assets if no surviving spouse
• $100,000 if the spouse is the sole heir

If your estate is close to this limit, you may be able to structure your plan to qualify for this expedited process, reducing court costs and time.

💡 Tip: Naming beneficiaries or placing assets into a trust can help reduce your probate estate to qualify for the small estate process.

✅ 5. Lifetime Gifting (Used Carefully)

Another way to reduce the size of your probate estate is by giving away assets during your lifetime. Maryland does not currently have a state gift tax, and the federal annual gift tax exclusion for 2025 is $18,000 per recipient.

Common lifetime gifts:

• Cash gifts to children or grandchildren
• Adding a trusted adult child to a bank account (with caution)
• Paying medical or tuition expenses directly

⚠️ But beware: Lifetime gifts can trigger Medicaid look-back periods or unwanted tax consequences. Always consult with a qualified estate planning attorney before transferring ownership of real estate or high-value assets.

Don’t Leave Probate to Chance

Probate in Maryland can last 12–18 months, cost thousands in fees, and create stress and confusion for grieving families. By acting now, you can create a plan that avoids the hassle and protects what you’ve worked for.

📍 At Bona Fide Estates LLC, we help Maryland families create trust-based estate plans that simplify inheritance, avoid probate, and protect future generations.

👉 Ready to take the next step?

Schedule a consultation today and learn how we can help you avoid probate with a plan tailored to your life, your home, and your family.

🔒 Disclaimer:

This article is for informational purposes only and does not constitute legal advice. Always consult with a licensed Maryland attorney about your specific legal situation. Attorney Advertising.

07/2025