Land Trusts in Maryland: Holding Real Estate in a Trust
We know of no Maryland statute that creates a title-holding land trust of the kind Florida has in s. 689.071. A Maryland land trust is an ordinary trust under the Maryland Trust Act (Estates and Trusts § 14.5-101 et seq.) whose trustee holds record title. Where the Maryland Code does define "land trust," it means a conservation organization (Tax-Property § 12-108(cc)), which is a different thing.
What you gain therefore depends on drafting and on Maryland rules for recording, tax and creditors. Brandon Northington, a Partner, is admitted in Maryland and the District of Columbia, and we serve clients in Baltimore and Anne Arundel County.
What a trust does and does not do for Maryland real estate
Recording and privacy. The deed to the trustee and its intake sheet, which names each grantor and grantee and a tax bill mailing address, are both recorded, and the assessment records follow the deed (Real Property § 3-104(a), (g)). If you deed property you already own, you are the grantor of record; after that the record shows the trustee, not the beneficiaries. Under Florida's act a trust does not fail because its beneficiaries are unnamed in the recorded instrument (s. 689.071(8)(g)); Maryland relies on general trust law: a trustee can give a certification of trust instead of the agreement (§ 14.5-910). Privacy is not secrecy. When the trustee sells or encumbers with title insurance, the insurer may still obtain a copy of the trust instrument to check creditor claims against the settlor's interest (§ 14.5-910(h)(2)).
Tax. A transfer of real property to a trust without consideration carries no recordation tax, transfer tax or other state or local excise tax, and a mortgage is not counted as consideration (§ 14.5-1001(a), (b)). Florida, by contrast, counts mortgage debt as consideration for documentary stamp tax (s. 201.02(1)(a)).
Creditors and probate. A trust does not hide property from creditors: a revocable trust is reachable by the settlor's creditors (§ 14.5-508). Spouses who move entireties property into a trust keep its immunity from one spouse's separate creditors only on the conditions in § 14.5-511, which our asset protection page covers. Property titled in a trustee's name is generally not part of your probate estate.
Deed and Trust Drafting
A trust agreement setting the trustee's powers, and a deed to the trustee that meets Real Property § 3-104.
Certification of Trust and Lender Coordination
A § 14.5-910 certification for the title insurer or lender, and a transfer tax check under § 14.5-1001(b) before you record.
Moving Entireties Property Into Trust
Deeds from spouses into a trust that state § 14.5-511 applies, coordinated with our asset protection work.
Does Maryland recognize land trusts?
A Maryland trust can hold title to real estate under the Maryland Trust Act, but we know of no statute that gives it Florida-style features. A conservation "land trust" under Tax-Property § 12-108(cc) must have a cooperative agreement with the Maryland Environmental Trust.
Does a trust keep my name off Maryland property records?
Not entirely. A deed of property you already own into the trust, and its recorded intake sheet, name you as grantor (Real Property § 3-104(g)). After that the record shows the trustee, not the beneficiaries; if you are your own trustee, that is your name.
Does the mortgage on my home make a deed to my trust taxable?
No. For the trust exemption, consideration excludes the amount of a mortgage or deed of trust on the property (§ 14.5-1001(a)(2)), so the mortgage alone does not make the deed taxable. Whether assigning a beneficial interest later triggers tax is a separate question we check on the facts.
Will my lender call the loan if I put my home in a trust?
For residential property of fewer than five units, federal law bars a due-on-sale demand on a transfer into an inter vivos trust in which you remain a beneficiary and keep occupancy rights (12 U.S.C. 1701j-3(d)(8)).
Facing a land trust question in Maryland?
The first consultation is confidential, and we respond within one business day. Tell us about the property, who owns it today and what you want to keep private.