Do you own property in Maryland but live in another state? Did you know that an out-of-state death can trigger a 1% probate fee in Maryland?
Many homeowners own property in more than one state.
But what often goes unnoticed is what happens after death—especially when someone who lives outside of Maryland owns real estate inside Maryland.
In these situations, families are often surprised to learn that a separate probate proceeding may be required in Maryland—and that it can come with a significant filing fee.
The Hidden Cost of Owning Maryland Property
If a person dies while living in another state but owns real estate in Maryland, that property generally cannot be transferred until a Maryland ancillary estate is opened.
This means:
- A second probate process (in addition to the home state)
- Additional filings and administration
- A probate fee based on the value of the Maryland property
In many cases, that fee effectively approaches 1% of the value of the Maryland real estate.
For example:
- $500,000 property → approximately $5,000 in probate fees
- $800,000 property → approximately $8,000 in probate fees
These costs often come as a surprise—especially when the family already completed probate in another state.
Why an Ancillary Estate Is Required
Each state controls the transfer of real estate located within its borders.
So even if:
- A will has been probated elsewhere, or
- A personal representative has already been appointed
Maryland still requires its own process to:
- Recognize authority
- Allow transfer of the property
- Ensure compliance with Maryland law
For further information, visit: https://registers.maryland.gov/main/index.html
How a Trust Can Avoid the Maryland Probate Fee
A properly structured revocable living trust can eliminate the need for an ancillary estate entirely.
Here’s why:
If the Maryland property is:
- Transferred into the trust during lifetime, and
- Properly titled in the name of the trust
Then at death:
- The trust—not the individual—owns the property
- No probate is required for that asset
- No Maryland ancillary estate is needed
- The associated probate fee is avoided
This is one of the most practical and effective uses of a revocable trust for clients who own out-of-state property.
The Critical Step Most People Miss
Creating a trust is not enough.
The trust must be properly funded, which means:
- A new deed must be prepared
- The property must be transferred into the trust
- The deed must be recorded correctly
If this step is skipped, the property remains in the individual’s name—and the probate issue remains.
Common Mistakes That Lead to Unnecessary Fees
I frequently see situations where:
- A trust was created, but the deed was never updated
- The property was partially transferred, but incorrectly titled
- Families assume a will avoids probate (it does not)
- No planning was done for out-of-state property
These issues often only come to light after death, when options are more limited.
Planning Ahead vs. Fixing It Later
Once a property owner has passed away:
- The ancillary estate is usually unavoidable
- The probate fee must be paid
- The process takes time and coordination across jurisdictions
By contrast, planning during lifetime is:
- More efficient
- More predictable
- Often significantly less expensive overall
The Bottom Line
Owning real estate in Maryland while living in another state can create:
- A second probate proceeding
- Additional administrative burden
- A probate fee that can approach 1% of the property value
A properly funded revocable trust can avoid this outcome entirely.
Need Help Structuring or Transferring Property Into a Trust?
If you:
- Own property in Maryland but live elsewhere
- Are creating or updating a trust
- Want to avoid ancillary probate and related fees
- Or need to transfer property into a trust correctly
Proper planning can make a significant difference.
For more information about deed transfers and estate planning, visit: https://gentileproplaw.com
To discuss your situation, you may contact Gentile Property Law Office, LLC here: https://gentileproplaw.com/contact-us/
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