How Estates in Maryland Are Handled

Handling a loved one’s estate after death involves navigating legal procedures that can seem complex. In Maryland, the probate process is the court-supervised method for settling an estate. This process ensures assets are distributed correctly, debts are paid, and heirs receive their rightful inheritance.

Understanding this process is helpful for anyone named in a will, serving as a personal representative, or expecting to inherit. Familiarity with Maryland’s estate administration can prevent delays or disputes. This article outlines important aspects of managing estates in Maryland.

Estate Court Jurisdiction

In Maryland, the Orphans’ Court in each county and Baltimore City oversees the probate process. This court supervises the administration of a deceased person’s (decedent’s) estate, ensuring assets are collected, debts and taxes are paid, and remaining property is distributed to the correct heirs or beneficiaries.

The Orphans’ Court is empowered by Maryland law to direct personal representatives (also known as executors or administrators), determine the validity of wills, and resolve disputes during estate administration, such as disagreements over who should serve as personal representative or asset valuation.

While the Orphans’ Court handles most estate matters, complex legal issues or certain disputes may go to the Circuit Court. For example, a personal injury lawsuit against the estate or challenges to a will’s validity might be heard in Circuit Court. The Register of Wills in each jurisdiction acts as the clerk for the Orphans’ Court, processing estate filings and maintaining records.

Key Legal Documents

Several legal documents guide the administration of an estate in Maryland.

Wills

A will is a legal document where an individual (the testator) names people to manage their estate and directs how their property should be transferred at death. For a will to be valid in Maryland, it must be in writing, signed by the testator, and signed by two credible witnesses in the testator’s presence.¹ After the testator’s death, the will is filed with the Register of Wills and becomes a public record, guiding asset distribution after debts and expenses are paid.

Letters of Administration

Authority to act for an estate is granted through Letters of Administration or Letters Testamentary. If there’s a valid will, the Orphans’ Court issues Letters Testamentary to the personal representative named in the will. If there is no will, or the named representative cannot serve, the court issues Letters of Administration to an individual based on legal priority, such as a surviving spouse or children.² These documents empower the personal representative to manage estate assets. Financial institutions require certified copies of these Letters to access accounts or transfer property.

Inventories and Accountings

The personal representative must manage estate assets carefully. Two important documents are the Inventory and the Account. Within three months of appointment, the personal representative files an Inventory with the Register of Wills, listing all assets owned by the decedent at death with their fair market values.

Later, the personal representative files an Account with the Orphans’ Court. The first account is due nine months after appointment and details all financial activity, including income, asset changes, payments for debts and expenses, and distributions.³ Further accounts are due every six months until the estate is closed.

Personal Representative Duties

Once appointed by the Orphans’ Court, a personal representative in Maryland takes on legal responsibilities as a fiduciary, acting in the best interest of beneficiaries and creditors. Their main duty is to settle and distribute the estate according to the will (if one exists) and Maryland law, efficiently and preserving its value.⁴

A key task is to take control of the decedent’s assets by identifying, locating, and securing all property. The personal representative must manage these assets carefully, which can include maintaining insurance or making repairs.

Administrative duties include notifying heirs, paying valid debts, funeral expenses, and taxes. This involves reviewing claims and paying them in the correct order. The representative may also need to fulfill contracts made by the decedent and can act for the estate in legal matters, like pursuing claims owed to the estate or defending against claims.

The personal representative must avoid conflicts of interest. Mismanagement can lead to personal liability for any loss to the estate.⁵ For their services, the representative is entitled to reasonable compensation, often based on the estate’s value, unless the will states otherwise. They can also be reimbursed for legitimate expenses and may hire professionals like attorneys or accountants, with reasonable fees paid from estate assets.

Spousal Share and Family Protections

Maryland law provides protections for surviving spouses and minor children. A surviving spouse has a right to an elective share, which allows them to take a specific portion of the deceased spouse’s estate, even if the will provided less. This share is one-third of the estate subject to election if the decedent has surviving children or grandchildren, or one-half if not.⁶ The estate subject to election includes probate assets and certain non-probate assets. This right can be waived, often through marital agreements.

Maryland law also provides a family allowance for the surviving spouse and unmarried minor children (under 18). The surviving spouse is entitled to $10,000, and each eligible minor child receives $5,000.⁷ This allowance has priority over most other claims and offers immediate financial support. How assets are distributed when someone dies without a will is covered by intestacy laws.

Creditor Claims and Priorities

When someone dies in Maryland, their outstanding debts become the estate’s responsibility. The personal representative must identify legitimate creditors and pay their claims from estate assets before distributing property to beneficiaries.

The personal representative works to identify creditors. The Register of Wills publishes a Notice of Appointment in a local newspaper, telling creditors to present claims. The personal representative also directly notifies known creditors. Claims must be presented within six months of the decedent’s death or two months after the personal representative gives specific written notice to the creditor, whichever is earlier.⁸ Claims not presented by these deadlines are usually barred.

Creditors can present a claim by giving a written statement to the personal representative or filing it with the Register of Wills. If the personal representative disallows a claim, they notify the creditor, who then has a limited time, often 60 days, to petition the Orphans’ Court or take legal action.

If estate assets are not enough to pay all valid claims, Maryland law specifies a payment order:⁹

Fees due to the Register of Wills
Costs and expenses of estate administration
Funeral expenses (up to $15,000 unless court-approved)
Compensation for the personal representative and legal services
The family allowance
Taxes due by the decedent
Reasonable medical expenses of the decedent’s last illness
Claims of the Maryland Department of Health for Medicaid
Rent in arrears (up to three months)
Wages, salaries, or commissions for services to the decedent (within three months prior to death)
Old age assistance claims
All other claims

The personal representative must follow this order to avoid personal liability if the estate cannot cover all debts.

Intestate Distribution

When a Maryland resident dies without a valid will, their property is distributed according to intestate succession laws. These laws determine inheritance based on the decedent’s family relationships.

The share an heir receives depends on who survives the decedent. If the decedent is survived by a spouse and minor children, the spouse receives one-half of the net intestate estate, and the children share the other half. If there are surviving children but no minor children, the spouse receives the first $100,000 plus one-half of the remaining estate, with the children inheriting the rest.¹⁰ If there is a surviving spouse but no children or parents, the spouse inherits the entire net intestate estate. Specific rules may also consider the length of the marriage if all surviving children are also descendants of the surviving spouse.

If there is no surviving spouse, or if part of the estate does not pass to the spouse, Maryland law directs distribution to other relatives. Surviving children or grandchildren inherit first. If there are no children or grandchildren, the estate passes to the decedent’s parents. If no parents, then to the decedent’s siblings or their descendants. This is often done “by representation,” meaning if an heir who would have inherited has died, their own descendants share that portion.

Maryland law also addresses inheritance rights for adopted individuals and children born out of wedlock under certain conditions. If no surviving relatives are found according to the legal order of kinship, the net intestate estate goes to the State of Maryland for public schools. The Orphans’ Court oversees this process.