Best Estate Planning for Unmarried Couples in Maryland

If you're unmarried and living together in Maryland, your partner's legal position depends on whether you have registered a domestic partnership. An unregistered partner has no statutory intestacy share — solely owned assets pass under your will or Maryland's intestacy rules, regardless of how long you've been together or how intertwined your finances are. A non-exempt partner who receives property at death is subject to Maryland's 10% inheritance tax on the clear value received.

The best estate planning tool for unmarried couples in Maryland is one that addresses both problems simultaneously: building an inheritance framework that doesn't exist automatically, and minimizing the tax hit on every dollar that passes between you. The Maryland Basic Estate Planning Kit is designed around exactly this scenario — the dual-tax trap and the common law property rules that make Maryland uniquely hostile to unmarried couples.

Why Maryland Is Different

Most estate planning guides treat unmarried couples as a footnote. In Maryland, it's the central issue. Three rules collide to create a worst-case scenario:

No automatic inheritance for an unregistered partner. Under Maryland's common law property system, assets are owned by whoever holds title. There's no community property split. If your partner is not a spouse or registered domestic partner, solely titled assets pass under your will or Maryland's intestacy rules rather than automatically to that partner.

10% inheritance tax for non-exempt recipients. Maryland exempts spouses, registered domestic partners for deaths on or after October 1, 2023, parents, grandparents, children, grandchildren, great-grandchildren, stepchildren, siblings, and spouses of children. An unregistered partner of 30 years remains non-exempt and pays a flat 10% on the clear value received. Leave that partner a $400,000 home? The inheritance tax on a $400,000 clear value would be $40,000.

No default healthcare authority for an unregistered partner. Without a Maryland Advance Directive naming your partner as your healthcare agent, an unregistered partner may not be able to make medical decisions or access medical records in an emergency. The hospital may instead look to the statutory decision-maker hierarchy.

The Core Documents You Need

Reciprocal Wills

Each partner needs a last will and testament naming the other as primary beneficiary. Maryland requires two credible witnesses, and a Self-Proving Affidavit means the Orphans' Court accepts the will without calling witnesses to testify years later.

Without a will, Maryland intestacy law distributes your estate to a surviving spouse or registered domestic partner and then other statutory heirs. An unregistered partner is not in that chain.

Transfer-on-Death Deed

Maryland's new TOD Deed Act (effective October 1, 2026) lets homeowners pass real estate directly to a named beneficiary outside probate. This is transformative for unmarried couples — the home transfers immediately at death, bypassing the Orphans' Court entirely. The transfer is exempt from Maryland's state and county transfer and recordation taxes.

The inheritance tax still applies to non-exempt beneficiaries receiving property via TOD deed. But avoiding probate saves your partner months of delay and thousands in Register of Wills fees.

Financial and Healthcare Powers of Attorney

A durable financial power of attorney lets your partner manage your finances if you're incapacitated. A Maryland Advance Directive grants healthcare decision-making authority. Without these, your partner is shut out — legally, they're no different from a neighbor.

Strategies to Reduce the 10% Tax Hit

You can't eliminate Maryland's inheritance tax for an unregistered unmarried partner entirely, but you can reduce the taxable amount:

• Life insurance — proceeds paid to a named beneficiary are not subject to Maryland inheritance tax. A term life policy can replace the value lost to the 10% tax on other assets.
• Joint tenancy with right of survivorship — property held as JTWROS passes directly to the surviving owner outside probate. The inheritance tax may still apply to the decedent's proportional share, but it avoids probate fees and delays.
• Retirement account beneficiary designations — IRAs and 401(k)s pass directly to the named beneficiary and are not part of the probate estate. Ensure designations are current and coordinate with your will.
• Gift during lifetime — Maryland has no state gift tax. The federal annual gift tax exclusion is $19,000 per person (2026). Systematic gifting over several years can reduce the taxable estate.

Who This Is For

• Unmarried couples who own a home together or separately in Maryland
• Partners who have been together for years but have no legal documents in place
• Same-sex or opposite-sex couples who chose not to marry for personal, financial, or tax reasons
• Anyone whose unregistered partner would be classified as a non-exempt beneficiary under Maryland law

Who This Is NOT For

• Married couples and registered domestic partners (spouses and registered domestic partners are exempt from Maryland inheritance tax and have statutory inheritance rights)
• Couples whose combined assets are simple enough that a single beneficiary designation on a bank account covers everything
• Anyone who needs advice on prenuptial or postnuptial agreements (consult a family law attorney)

Frequently Asked Questions

Does domestic partnership registration protect us in Maryland?

Maryland allows qualifying couples to register a domestic partnership by filing a declaration with the Register of Wills in the county where they are domiciled. For deaths on or after October 1, 2023, a registered domestic partner is exempt from inheritance tax and is treated like a spouse for intestacy, although registration does not create an elective-share right. An unregistered partner does not receive those statutory protections.

Can we avoid the 10% inheritance tax entirely?

Not on assets that transfer at death to an unregistered non-exempt heir — the tax is structural. But life insurance proceeds paid to a named beneficiary are exempt from the inheritance tax, making life insurance the most direct workaround. You can also reduce the taxable estate through lifetime gifts.

What happens to our joint mortgage if one of us dies?

If you hold the property as Joint Tenants with Right of Survivorship, the surviving partner automatically owns the entire property. The mortgage obligation continues — the lender cannot call the loan due solely because of the co-borrower's death (federal Garn-St. Germain Act). If you hold as Tenants in Common, the deceased partner's share passes through their will or intestacy, which could mean your deceased partner's family or other heirs now co-own your home.

Is a revocable living trust better than a will for unmarried couples?

A revocable trust avoids probate entirely and keeps your asset distribution private (wills become public record when filed with the Register of Wills). For unmarried couples with real estate and substantial assets, a trust combined with a pour-over will is often the cleanest structure. However, trust assets passing to an unregistered non-exempt heir are still subject to the 10% inheritance tax.

See more Maryland guides →