Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
When someone dies in Maryland, you must follow probate rules to access their bank account unless the funds pass automatically (e.g., joint tenancy or payable-on-death designation). Below is a step-by-step guide under Maryland law.
1. Determine How the Account Is Titled
- Joint Account with Rights of Survivorship: Funds pass directly to the surviving owner without probate.
- Payable-on-Death (POD) or Transfer-on-Death (TOD) Designation: The named beneficiary collects the funds by presenting a death certificate to the bank.
- Sole Account in Decedent’s Name: You must open a probate estate and appoint a personal representative before the bank can release funds.
2. Appoint a Personal Representative
If the decedent had a valid will, the executor named in the will petitions the Orphans’ Court for “letters testamentary.” If there’s no will, an interested party (usually an heir) petitions for “letters of administration.” These documents appoint a personal representative to manage the estate. See Md. Code, Est & Trusts §7-201.
3. Obtain Letters and Notify the Bank
- File the petition with the Register of Wills in the county where the decedent lived.
- Receive certified copies of the letters testamentary or administration.
- Provide the bank with a certified copy of the letters, the death certificate, and a valid ID.
- The bank will place a hold on the account until proper authority is shown.
4. Withdraw Funds for Estate Expenses and Distributions
Under Md. Code, Est & Trusts §7-102, a personal representative may pay funeral expenses, taxes, creditor claims, and other administrative costs. After settling liabilities, distribute remaining funds to beneficiaries as directed by the will or by Maryland’s intestacy rules (Md. Code, Est & Trusts §3-101).
5. Use Small Estate Summary Administration When Eligible
If the total estate value (excluding real property) does not exceed $50,000, you may use the Small Estate Summary procedure under Md. Code, Est & Trusts §7-402. Steps include:
- Complete an affidavit listing the decedent’s personal property and debts.
- File the affidavit with the Register of Wills.
- Obtain a Small Estate Certificate.
- Present the certificate and death certificate to the bank to withdraw funds.
Helpful Hints
- Gather all account statements early to determine total value.
- Contact the Register of Wills for county-specific filing fees and forms.
- Keep detailed records of all withdrawals and estate expenses.
- Check for any POD or TOD designations before opening probate.
- Notify known creditors promptly to avoid late claims.
- Consider consulting a probate attorney if the estate has complex assets or disputes.