Maryland Estate, Probate & Long-Term Care: Protect Your Home

Why Your Maryland Home Needs a Plan

For many Maryland families, the home is the largest asset and the cornerstone of generational wealth. Without a coordinated plan, your home can be exposed to probate delays, creditor claims, family conflict, and potential Medicaid estate recovery after long-term care. A Maryland-focused plan can help you stay in control during life, simplify transfer at death, and protect your spouse or disabled family members.

Probate in Maryland: What to Expect

Probate is the court process for administering a decedent’s estate. In Maryland, whether your estate proceeds as a small estate or a regular estate depends on asset value and other factors. The process typically involves opening the estate with the Register of Wills, appointing a personal representative, notifying heirs and creditors, inventorying assets, resolving claims and taxes, and distributing the remainder. See the Registers of Wills probate overview for procedures and forms.

You can reduce probate exposure by using non-probate transfers (such as beneficiary designations, payable-on-death accounts, and transfer-on-death registrations where available), joint ownership with survivorship, and properly funded revocable trusts. Each option has tradeoffs—creditor exposure, tax effects, and control issues—so coordination matters.

Medicaid and Long-Term Care: How Your Home Is Treated

Maryland Medicaid can help pay for nursing home and some home- and community-based services if eligibility requirements are met. Your primary residence may be a non-countable asset in certain circumstances, but equity limits, occupancy intent, and household composition matter. Learn more on the Maryland Medicaid LTSS page: MDH: Long-Term Services & Supports.

After death, Maryland participates in Medicaid Estate Recovery. The state may seek reimbursement from a recipient’s estate, potentially including the home, subject to important exceptions and hardship waivers (for example, protections for a surviving spouse and certain minor or disabled children). See MDH: Medicaid Estate Recovery for current rules and exceptions.

Spousal Protections and Family Safeguards

Federal and state Medicaid rules include resource and income protections for a “community spouse,” which can help preserve a portion of marital assets and income when one spouse needs long-term care. See the Medicaid resources above for current thresholds and procedures. Maryland probate law also protects surviving spouses through elective share rights that guard against total disinheritance. For statutory background, see the Maryland Estates & Trusts Code (unofficial link). Families supporting a disabled child or dependent relative may also consider special needs trusts and carefully documented caregiver agreements to balance care, compensation, and benefits eligibility.

Tools to Help Protect Your Home

• Revocable living trust: Can streamline administration and avoid probate for assets titled to the trust, but does not by itself protect assets from long-term care spend-down.
• Life estate deed options: A traditional life estate deed is available in Maryland but has tradeoffs (loss of flexibility, potential transfer penalties if used at the wrong time). Some states recognize an “enhanced life estate” or “Lady Bird” deed; Maryland law does not expressly authorize a statutory Lady Bird deed, and any use of similar techniques is highly fact-specific and should be evaluated with Maryland counsel.
• Tenancy by the entirety (TBE): For married couples, TBE can provide protection from many individual creditors of one spouse; it does not protect against joint debts or certain tax liens.
• Beneficiary designations and POD/TOD registrations: Often available for financial accounts and securities to transfer outside probate. Availability and effects vary by asset type; confirm with each institution.
• Irrevocable trusts: May offer asset protection and Medicaid-planning advantages when established and funded well in advance, but involve loss of control, strict compliance, and tax tradeoffs.
• Caregiver agreements and spend-down planning: Converting countable assets into permissible expenditures (home safety modifications, care services, certain debt payments) can support eligibility if documented appropriately.
• Special needs trusts: Help preserve means-tested benefits for a disabled beneficiary while providing supplemental support.

Timing Matters: Look-Backs, Transfers, and Recovery

Medicaid reviews certain transfers for less than fair market value within a defined look-back period; disallowed transfers can cause a penalty period for nursing home coverage. Maryland’s estate recovery generally occurs after the recipient’s death and is subject to specific exceptions and hardship provisions. Because timeframes and procedures can change, verify current rules before making any transfers. See MDH LTSS and MDH Estate Recovery.

Taxes to Keep on Your Radar

• Maryland inheritance tax: Applies to transfers to certain non-exempt beneficiaries; many close family members are exempt.
• Maryland estate tax: Maryland maintains a separate estate tax framework from the federal system with its own threshold and rules.
• Property taxes: Homestead credits and local programs (for seniors, veterans, and others) may reduce annual tax costs; confirm eligibility and application requirements in your county.

Coordinating Your Plan

• Inventory your assets and beneficiary designations.
• Align home title, mortgages, and insurance with your estate plan.
• Consider a revocable trust for administration efficiency and privacy.
• Evaluate long-term care insurance versus Medicaid-planning tradeoffs.
• Use Maryland-compliant financial powers of attorney and advance medical directives.
• Update documents after marriage, divorce, births, deaths, moves, or major purchases.

When to Seek Counsel

Seek Maryland counsel if long-term care is likely within the foreseeable future, you are considering gifting or transferring your home, a family member is disabled or relies on public benefits, your estate includes a closely held business, or there is family conflict. Early advice can preserve options that disappear under look-back, penalty, and recovery rules.

How Our Firm Helps

We provide coordinated Maryland estate planning, probate administration, and elder law counsel. Services include:

• Will and trust design with probate minimization
• Maryland Medicaid eligibility and spend-down planning
• Review of titling, deeds, and potential use of life estate or other deed strategies
• Spousal protection analysis and special needs planning
• Probate and trust administration, tax coordination, and dispute resolution

Ready to protect your home and family? Schedule a consultation.

FAQ

Is my Maryland home always protected from Medicaid?

No. While a primary residence can be non-countable in some eligibility scenarios, it may still be subject to estate recovery after death unless an exception applies.

Does a revocable trust protect my home from nursing home costs?

No. A revocable trust can avoid probate if properly funded but does not shield assets for Medicaid eligibility.

Can Maryland use a Lady Bird deed?

Maryland does not have a statutory Lady Bird deed. Limited workarounds may exist but require careful Maryland-specific legal drafting and advice.

What if my spouse remains at home?

Spousal impoverishment rules may allow the community spouse to keep certain assets and income. Exact amounts and procedures change, so verify current limits.

How do I avoid probate for my house?

Common methods include titling in a properly funded revocable trust or using certain forms of joint ownership. Each option has tradeoffs to evaluate with counsel.

Will my children pay Maryland inheritance tax on the house?

Transfers to lineal descendants are generally exempt from Maryland inheritance tax, but other beneficiaries may be taxed. Confirm based on your specific plan.

What documents should every Maryland homeowner have?

A will, financial power of attorney, advance medical directive, and, when appropriate, a revocable trust and deed aligned with your goals.

When should I start planning?

Early. Some strategies require seasoning periods relative to Medicaid’s look-back rules, and proactive planning preserves more options.

Sources

• Maryland Registers of Wills – Probate Information
• Maryland Department of Health – Medicaid Long-Term Services and Supports
• Maryland Department of Health – Medicaid Estate Recovery
• Maryland Code, Estates and Trusts (unofficial link to state statutes)

Maryland-specific disclaimer: This blog is for general informational purposes only and is not legal advice. Laws change and outcomes depend on your specific facts. Consult a Maryland attorney before taking action.