Why Maryland Homeowners Are Placing Their Homes In Trusts

For many Maryland families, a home is their most valuable asset — financially and emotionally. As homeowners think about the future, more are turning to a simple but powerful estate planning tool: placing their home in a trust.

While the idea may sound complicated, the benefits are practical and can make a meaningful difference for loved ones.

Avoiding Probate

In Maryland, if a home is owned solely in an individual’s name, it generally must pass through probate with the register of wills after death. Probate can involve court oversight, legal fees, and delays.

By transferring a home into a revocable living trust, the property can pass directly to beneficiaries without going through probate. This often means a faster, more private and less costly process for families.

Keeping Control

Placing a home in a trust does not mean giving it up. With a revocable living trust:

• You remain in full control
• You can sell or refinance at any time
• You can change or revoke the trust

In practical terms, you continue to live in and manage your home just as before.

Your Mortgage Remains The Same

A common concern is whether transferring a home into a trust affects the mortgage. In most cases, it does not.

Under federal law, homeowners can typically transfer their primary residence into a revocable trust without triggering the lender’s due-on-sale clause, provided they remain a beneficiary and continue living in the home.

Your loan terms stay the same, and payments continue as usual. As a precaution, homeowners should still notify their lender and confirm any requirements.

Planning For Incapacity

A trust is not only useful after death — it also helps during your lifetime. If you become unable to manage your affairs, a successor trustee can step in to handle the property, including paying the mortgage, maintaining the home, or arranging a sale if needed.

This can help families avoid the time and expense of court proceedings to appoint a guardian.

Privacy And Simplicity

Unlike a will, which becomes public during probate, a trust operates privately. This keeps details about your home and its distribution out of the public record.

For those who own property in more than one state, a trust also helps avoid multiple probate proceedings, simplifying matters for heirs.

Flexibility For Families

Trusts allow homeowners to set clear instructions for what happens to the home. For example, you can:

• Allow a spouse or family member to live in the home
• Delay a sale
• Provide for multiple beneficiaries in an orderly way

This flexibility can be especially helpful in blended families or complex situations.

Taking The Next Step

Setting up a trust typically involves creating the document, transferring the deed into the trust, and updating insurance. While the process is straightforward, it should be done with guidance to ensure everything is properly handled under Maryland law.

Final Thoughts

Placing a home into a trust is not just for the wealthy — it is a practical step many Maryland homeowners are taking to simplify matters for their families. By avoiding probate, maintaining privacy, and ensuring continuity, a trust can make the transition of property much smoother.

Consulting with an experienced attorney can help determine whether this approach fits your overall estate plan.

Karen M. Authement is an attorney with KMA Law, advising clients on estate planning, real estate, and asset protection. KMA Law helps individuals and families protect what they’ve built and plan for the future with confidence. Learn more at www.kma-law.com.