News & Insights

Thanksgiving brings families together in the homes where holidays were celebrated, and memories were made. As the season approaches, Maryland and Washington, DC families may ask how to keep those homes in the family. Real estate agents often hear those questions first, so knowing the basic options and when to involve counsel can help you guide clients with confidence.

How Families Transfer Property: The Basics
Families generally use a life estate deed or deed of gift, a will requiring probate, a trust, or a transfer-on-death deed, which is available in Maryland but not DC. The best choice depends on the family’s goals, finances, and timing.

Maryland’s Transfer-on-Death Deed (TOD): A Powerful Tool
Maryland’s Uniform Real Property Transfer on Death Act permits an owner to name a beneficiary by deed, with the property passing at death without probate.

• The owner may revoke or change the deed during life and retains control of the property.
• At death, the property transfers automatically, avoiding probate-related time and expense.
• Unlike a lifetime gift, the beneficiary has no ownership interest until the owner dies.

A TOD deed may suit clients seeking a simple, flexible plan, but an attorney should prepare, execute, and record it properly.

What About DC?
DC does not currently authorize TOD deeds. Clients generally consider revocable living trusts, joint tenancy, or lifetime gifts to avoid probate. An estate planning attorney can assess the best fit.

Key Considerations: Taxes, Medicaid, and Title Issues
Lifetime gifts can create gift-tax issues and generally carry the donor’s tax basis to the recipient. Inherited property generally receives a stepped-up basis at death, potentially reducing capital-gains tax on a later sale. Clients should consult a tax professional before transferring property.

Medicaid’s five-year look-back can make a recent property transfer affect eligibility for long-term-care benefits. An elder law attorney should review any transfer where future care may be a concern.

Flag title problems early, including a deceased owner on title, disputed heirs, or liens, and involve a title company and attorney before listing or transferring the property.

Practical Tips for Agents
Agents add value by spotting issues early, asking good questions, and connecting families with the right professionals.

• Ask about the client’s goals, timeline, and whether an attorney is already involved.
• Do not provide legal or tax advice; recommend an estate planning, tax, or elder law professional as appropriate.
• Watch for title defects, family disputes, pressure on an older owner, or attempts to avoid creditors or Medicaid rules.
• Use proper contracts, disclosures, and documentation, even when the parties are relatives.
• Approach these conversations with empathy; family property decisions often carry grief, nostalgia, and strong emotions.

Bringing It Home
This Thanksgiving, families across Maryland and DC may discuss preserving a cherished home for the next generation. Agents can guide them by knowing the basics and when to involve an attorney, tax advisor, or elder law professional.

With the right guidance, agents can help clients protect not only real estate, but a meaningful part of their family story.