Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When a decedent owns real property in Maryland, a personal representative must take specific steps to ensure that the asset becomes part of the probate estate and is available to pay valid creditor claims. Below is a typical workflow under Maryland law:
- Open Probate and Qualify the Personal Representative. File the decedent’s will (if any) or a petition for administration with the Orphans’ Court in the county where the decedent lived. Once the court issues letters testamentary or letters of administration, the personal representative gains authority to act. (See Md. Code, Est. & Trusts § 1-101 et seq.)
- Inventory Real Property. Within 90 days of qualification, submit a sworn inventory listing all estate assets, including real property. Include a description and the fair market value at the date of death. (Md. Code, Est. & Trusts § 7-203, https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=ets§ion=7-203.)
- Record the Certificate of Appointment. In each county where real property lies, record a certified Appointment Certificate or letter of administration in the Land Records Office. This step establishes the personal representative’s authority to manage or convey the property. See Maryland Rule 6-425(c), https://www.mdcourts.gov/rules/title6/425.html.
- Obtain an Order to Sell Real Property. If the estate needs cash to pay debts, petition the Orphans’ Court for authorization to sell the property. Under Md. Code, Est. & Trusts § 8-101, the court may issue a sale order after notice to interested parties and a hearing. (https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=ets§ion=8-101.)
- Advertise and Conduct the Sale. Follow the court order’s terms and Maryland Rule 6-425(d) on public or private sales, including newspaper advertisement or direct marketing. Accept the highest responsible offer and obtain a confirmation order if required.
- Return the Sale Account and Pay Creditors. Within the time set by the court, file an accounting of the sale proceeds, show payment of valid claims, and ask the court to approve distribution. Remaining proceeds pass to beneficiaries under the will or Maryland law of intestacy.
Helpful Hints
- Start the probate process promptly—delays can jeopardize creditor notice rights.
- Obtain at least one professional appraisal for real property to support the inventory value.
- Check local Orphans’ Court procedures; filing forms and deadlines vary by county.
- Keep clear records of all advertisements and sale efforts in case of beneficiary or creditor objections.
- Consult a probate attorney if title issues or multiple heirs complicate the sale.
- Remember that federal and state tax liens must be addressed before or at closing.