A bill being considered by Maryland state lawmakers would simplify estate planning and reduce unnecessary burdens – especially for seniors, advocates argue.

Senate Bill 651 would create a Transfer-on-Death deed option for Marylanders. That would allow someone to have their real estate holdings be transferred to another person at the time of their death outside of probate.

Supporters argue these documents promote accessibility and fairness by reducing administrative costs for deed transfers. A 2024 survey found only half of Maryland seniors have a will.

Sara Westrick, advocacy director with AARP Maryland, said a will may indicate who a person wants to have their home, but it doesn’t actually transfer the deed to them.

"One of the benefits to this legislation before the Maryland General Assembly," said Westrick, "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."

Opponents of Transfer-on-Death deeds argue the document reduces the need for estate planning attorneys.

But AARP points out that states which have passed similar legislation haven’t seen a major impact on estate planning attorneys, because many people who take advantage of the deed don’t have a will.

For many Marylanders, their net worth is tied to their biggest asset – their home. In 2021, home equity accounted for a median of 45% of a homeowner's net worth, according to the Pew Research Center.

Westrick said other options for property transfer outside of a Transfer-on-Death deed can be costly, especially for seniors on fixed incomes.

"It’s helping to ensure a smoother transition of the ownership of their property from generation to generation," said Westrick. "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."

More than 30 states and territories have a Transfer-on-Death deed option, including Delaware, which passed a measure last year.

Source: Public News Service