Transfer-on-Death Deeds in 2026: What Maryland and Georgia's New Rules Mean for Downsizers

A transfer-on-death (TOD) deed lets a named person inherit your home without probate, while you keep full control during your life. Maryland's TOD deed law took effect October 1, 2026, and Georgia changed its rules in April. If you are selling or buying a smaller home, check whether an old deed still fits.

Paperwork is the part of a move that everyone leaves for last. At Midlife Simplicity, we put the property documents in order before anyone asks for them, without giving legal advice. This guide explains how a TOD deed works, what changed in Maryland and Georgia, the risks that surprise people, and how a downsizing move affects a deed you already have.

What Is a Transfer-on-Death Deed and How Does It Work?

A TOD deed is a recorded deed that names a beneficiary to receive your real estate when you die. Nothing transfers while you are alive. You can live in the home, sell it, refinance it or revoke the deed without the beneficiary's permission.

According to a probate-law summary from Swift Probate, the deed must be recorded with the county before the owner dies, and an unrecorded deed generally fails. Some states also require witnesses or a notary. The rules follow the location of the property, not where you live.

The same summary says 34 states and the District of Columbia allowed TOD deeds as of October 2026. That count changes as legislatures act, so confirm your own state before you plan around one.

What Changed in Maryland and Georgia in 2026?

Maryland created a TOD deed in 2026, and Georgia revised its process. The Maryland General Assembly's page for House Bill 738 shows the law was approved by the Governor on May 26, 2026 as Chapter 751, with an effective date of October 1, 2026. It passed the House 133 to 0 in its final vote.

The bill sets rules for creating, revoking, recording and giving effect to TOD deeds. It also applies to deeds signed before the effective date, for owners who die on or after October 1, 2026. The page does not spell out every signing and recording step, so read the chapter text or ask a Maryland attorney.

Georgia took a different path. A summary of House Bill 413 from SimplyTrust says Governor Brian Kemp signed it on April 22, 2026. Under the amendments, TOD property stays part of the deceased owner's estate until the beneficiary accepts it by executing and recording an affidavit. The same summary notes that the earlier nine-month deadline for acceptance was removed, which a commentator warned could leave property in limbo.

The lesson is simple. State rules are moving, and a deed you signed years ago may work differently now. Review it when you review your will.

Does a TOD Deed Still Matter if You Are Downsizing?

Yes, but what it does depends on which home you own at death. If you sell the home named in the deed, the deed ends, because you no longer own the property. If you buy a smaller home, the new property needs its own plan.

That is why a move is the right time to check your paperwork. The checklist below covers what to review.

Our checklist of documents needed to sell your house helps you gather deeds and title papers before listing. If you plan to buy again, see our guide to buying a smaller home with mortgage rates near 7%.

What Risks Surprise People With TOD Deeds?

A TOD deed avoids probate, but it does not erase debts, liens or taxes. The Swift Probate summary says the beneficiary takes the property subject to existing mortgages and liens. In many states, a beneficiary can also be liable to creditors up to the value received, if the estate cannot cover valid debts.

Three other risks deserve a mention.

Reverse mortgages are a special case. The Consumer Financial Protection Bureau (CFPB) explains how a reverse mortgage works, and loans of this kind usually become due after the borrower dies. A beneficiary may need to repay it or sell the home. Do not assume a TOD deed protects a home with a reverse mortgage.

How Does a TOD Deed Affect Taxes?

A TOD deed does not change your income tax while you are alive. After death, property a beneficiary receives generally takes a stepped-up basis equal to its value on the date of death. That can reduce capital gains if the beneficiary sells, as the Swift Probate summary notes.

The Internal Revenue Service (IRS) explains how basis works in Publication 551. Compare that with giving the home away during your life, which can pass along your lower original basis. Our explainer on capital gains tax on selling a family home shows how the sale exclusion works if you sell instead.

Homestead and property tax breaks also deserve a look. In some states, a transfer can change the tax bill or an exemption. Florida readers can start with our piece on Florida Amendment 3 and the homestead exemption, then ask the county property appraiser how a transfer would apply.

How Do You Revoke or Replace a TOD Deed?

You can generally revoke a TOD deed by recording a revocation, recording a newer TOD deed or selling the property. The Swift Probate summary says that in most states a will cannot revoke it. Revocation also has to be recorded with the county, just like the original.

If your beneficiary dies before you, check the deed for an alternate. If none is named, the property usually falls back into your estate. Some states redistribute the share or apply anti-lapse rules, so rules differ.

Record any change before the move. Do not wait until the closing table, when you are juggling keys, utilities and movers. A missing revocation is a small mistake with large consequences for the people who inherit.

When Is a TOD Deed the Wrong Tool?

A TOD deed is a poor fit when several heirs need to share a home, when a beneficiary is a minor, or when a beneficiary has creditors or a disability that depends on benefits. A trust may handle those cases better. A TOD deed is also risky if you have a complex family, since it can override what your will says about that property.

Most states do not let a will revoke a TOD deed. That means a deed you forgot about can quietly override a newer will. This is another reason to review old documents during a move.

If the home is your biggest asset, a short meeting with an estate attorney is money well spent. The Administration for Community Living's Eldercare Locator can point you to local legal help and senior services in your area.

Questions to Ask an Estate Attorney

A short, prepared list makes the meeting more useful. Bring copies of your deeds and recent statements.

Ask for answers in writing, and keep the notes with your documents. An attorney who explains the choices in plain language is worth keeping for future updates.

What to Do This Month

Gather every deed, will, trust and beneficiary form into one folder. Write a one-page summary that lists each document, where the original is and who the named beneficiaries are. Bring that page to your attorney and your agent.

Keep the tone of the conversation practical. Your family does not need to hear every detail today, but they should know where the folder is. A calm note on the first page, listing who to call, can spare them days of searching later.

Midlife Simplicity editors checked this overview against the Maryland General Assembly record and published legal summaries as of October 23, 2026. Laws differ by state and change often. This article is general information, not legal advice, so confirm your situation with a licensed attorney in the property's state.

✻ This guide is part of our Paperwork series. One small job a week arrives in Sunday Notes, with nothing to sell you.