Step-by-Step: How to Transfer a Property into a Trust in Maryland

Owning real estate is often a family’s biggest asset and one of the most important pieces of any estate plan. Often the estate plan will transfer a property into a revocable living trust or another type of trust to help avoid probate, streamline administration, and ensure your property goes exactly where you intend.

But there is a common misconception: Creating the trust alone does not move your property into the trust. You must legally transfer title, and that requires careful steps and proper documentation. Below is a Maryland-specific guide to how the process works, what to watch out for, and when to get legal help.

Disclaimer: This post is for educational purposes only and is not legal advice. Every situation is unique, especially when lenders, taxes, and family arrangements are involved.

Why transfer property into a trust?

Putting real estate into a trust can avoid probate, maintain privacy, provide continuity if you become incapacitated, allow smoother management for your successor trustee, coordinate multiple properties and beneficiaries, and simplify transfers upon death. In most Maryland estate plans, the goal is to ensure the trust, not the probate court, controls what happens next.

Step 1: Confirm the trust is properly established

Before you can transfer property, your trust must be fully drafted and signed, clearly name the trustees, and contain valid trust terms under Maryland law. You will also need the exact trust name. If your trust was created years ago or created in another state, it may need review before transferring Maryland property into it.

Step 2: Identify how the property is currently titled

Review your existing deed. Common forms of ownership include sole ownership, tenants by the entirety, joint tenants with right of survivorship, and tenants in common. How the property is titled determines who must sign and whether special language is required. If spouses hold title as tenants by the entirety, the deed must be drafted carefully so you do not accidentally lose creditor protections Maryland homeowners often rely on.

Step 3: Prepare the deed to transfer a property to the trust

To move the property, a new deed, often called a Deed into Trust, is drafted. This deed transfers ownership from you as individuals to you as trustees of your trust. The deed must include the correct legal description, grantor and grantee names written precisely, tax and property information, return address instructions, Maryland certification and preparer’s statement, and proper notary acknowledgment and witnesses when required. Small drafting mistakes can lead to recording rejection or future title issues.

Step 4: Address lender or mortgage issues

If the property has a mortgage, people often worry about triggering a due-on-sale clause. Federal law generally allows transfers into a revocable trust where the borrower remains a beneficiary, but the situation should still be reviewed carefully. Lenders may request documentation or trust pages. For a helpful overview of mortgage due-on-sale rules, see the Consumer Financial Protection Bureau.

Step 5: Consider Maryland transfer and recordation taxes

Maryland typically imposes transfer and recordation taxes when deeds are recorded, but many trust transfers qualify for exemptions when no money changes hands, the beneficial ownership does not change, and the transfer is made for estate-planning purposes. Correct exemption codes and explanations are crucial. Filing incorrectly can mean paying taxes you did not owe. Maryland posts guidance here.

Step 6: Record the deed with the correct county office

The deed must be recorded in the land records where the property is located. Recording makes the transfer official, updates public records, and protects the trust’s ownership interest. Most counties now allow e-recording, but accuracy still matters. Keep copies of the recorded deed, trust documents, any lender approvals, and recording receipts or confirmations.

Step 7: Update insurance, taxes, and related records

After recording, notify your homeowner’s insurance carrier, mortgage servicer, HOA or condo association if applicable, and any relevant local offices. Your policy should reflect that the trust owns the property while still protecting you as the resident.

Common mistakes to avoid

Common mistakes include creating the trust but never transferring the deed, using generic online deed templates, accidentally removing tenancy-by-the-entirety protections, triggering unnecessary taxes due to wording issues, forgetting to notify lenders or insurers, and recording with the wrong legal description or names. Fixing these mistakes after the fact is often more costly.

When you really should hire an attorney to transfer a property

Some people can prepare and record their own deed but trusts and real estate intersect in complicated ways. A single drafting error can unintentionally invalidate the transfer, expose the property to creditors, trigger unexpected taxes, or create title problems that your heirs must fix later.

You should absolutely involve an experienced attorney if the property has a mortgage or home equity line, you are transferring to an irrevocable trust, you own rental or investment property, you want to preserve tenants-by-the-entirety protection, there are multiple beneficiaries or blended-family issues, you are unsure which Maryland exemptions apply, or you previously recorded a deed and want to confirm it was done correctly.

As a Maryland attorney focused on deeds, trusts, and property transfers, I routinely draft and review Deeds into Trust, ensure the correct exemptions are applied, coordinate with lenders and title offices, and confirm the transfer aligns with the overall estate plan.

If you are thinking about transferring your property into a trust, let us make sure it is done correctly the first time. You can contact me here. You can also visit my main site to learn more.

Final thoughts

Transferring real estate into a trust is one of the most important steps in completing an estate plan. Done correctly, it protects your property, spares loved ones unnecessary delays and provides peace of mind.

If you are unsure where to start or want a second set of eyes on a prior deed, I would be glad to help. Schedule a consultation at Gentile Property Law Office, LLC.