Legal Question in Wills and Trusts in Maryland

Oftentimes parents want to put adult children's name on the deed but I urge caution before transferring property outright while the original owner is still living. If the children are not living there, it will not be a principal residence and could potentially result in a higher annual tax bill. Another (usually larger) problem comes in not when the initial transfer is made but if/when the children ever transfer it they could be hit with capital gains tax. By contrast, property transferred at death should not incur capital gains tax.

Depending on your particular situation you may want to consider instead a life estate deed. A life estate deed can put children's names on title and keeps property out of probate BUT the original owner still "owns" the property, gets the benefit of caps on property tax increases and the children could get a stepped up basis when they eventually do get the property.

Deeds are relatively inexpensive part of an estate plan (my firm offers life estate deeds for $200 plus gov't filing fees) but the decision is best made after reviewing your situation and overall goals). You may want to contact an attorney of your choosing to discuss your options.