Q: In Md, if a house is put in Trust, must it go through Probate?

A: Property in a trust does not go through probate, but before you move your home into a trust, you might want to sit down and discuss your situation with a lawyer. Probate administration was massively simplified starting in the mid'1980's, and yet charlatans continue on the lecture circuit telling people that the objective of their estate planning should be to avoid probate. It isn't so for most people, though using a trust or a POD account and beneficiaries can be convenient and simple for liquid assets, and, for some people, going to the trouble of re-titling their homes may be worthwhile. Avoiding probate, itself, should not be a primary legal objective in your estate planning. Tax planning, ease of alienation, and elder care planning should probably be more significant goals that probate avoidance.

A: The short answer is "no." A house in trust does not go through probate.

Another attorney made some helpful observations, but I write to add a few additional thoughts. The "average" estate of under $4 million in Maryland does not need to worry much about tax planning.

There are multiple different taxes that kick in when someone dies. Death taxes, inheritance tax (sometimes income tax) and for assets going through probate, a probate 'fee'. While the probate "fee" is not very expensive in Maryland, many people with good reason still want to avoid probate. It typically costs about 4% to run an asset through probate, opens up the administration to the public and typically takes about a year - a year and a half for a relatively "normal" estate to settle. (this estimate is based on the statutory commission for amounts over $20,000 and typical costs for publication, nominal bond and personal property appraisals though administrative costs and amount of time involved may be much higher in contested or complicated estates).

As another attorney suggested, not every situation benefits from a trust. For instance, if there is only 1 adult child (or 2, perhaps 3 adult children who get along very well) and parents intend that such child(ren) immediately receive assets after both parents die, there are other, less expensive and much simpler ways to leave the property, such as through POD accounts or a life estate deed. Sometimes trusts are "oversold" when there are other ways to pass property outside of probate.

In some situations, though, a trust saves a lot of time and money and is a great way to accomplish the planner's goals without need for court involvement or oversight. This is especially true in situations involving any of the following: a blended family, real estate owned in different jurisdictions, young beneficiaries, any concern with a beneficiary getting their entire inheritance outright, a number of heirs or just where leaving the property to multiple people would create friction or hassle.

This is not legal advice. At the end of the day, it is highly recommended to sit down and talk over the specific situation with an estate planning lawyer.