Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Under Maryland law, determining the assets remaining in an estate after paying debts and fees requires a clear process. The following steps follow the requirements in Md. Code, Estates & Trusts.
Detailed Answer
1. Compile a Complete Inventory of Assets
The personal representative must list all probate assets (real estate, bank accounts titled solely in the decedent’s name) and non-probate assets (jointly held property, payable-on-death accounts). Assign each asset its fair market value at the date of death to establish the gross estate.
2. File an Inventory with the Register of Wills
Within 90 days of appointment, file a detailed inventory in the orphans’ court. This submission starts the six-month period for creditors to present claims. See Md. Code, Estates & Trusts § 7-205 (https://law.justia.com/codes/maryland/2022/estate-and-trusts/title-7/subtitle-2/section-7-205/).
3. Satisfy Debts and Creditor Claims
Creditors have six months from the date the inventory is filed to submit valid claims. You must review, allow, and pay approved claims before distributing assets. Failure to pay valid debts can expose the personal representative to liability.
4. Pay Administration Expenses and Commissions
Administration expenses may include court costs, appraisal fees, advertising, and postage. The personal representative may charge a statutory commission on the estate’s value. Maryland law sets commission rates under Md. Code, Estates & Trusts § 7-402 (https://law.justia.com/codes/maryland/2022/estate-and-trusts/title-7/subtitle-4/section-7-402/).
5. Calculate the Net Estate for Distribution
Subtract total debts, allowed creditor claims, administration costs, and personal representative commissions from the gross estate value. The result—known as the net estate—consists of all remaining assets. Distribute those assets according to the will or Maryland’s intestacy rules under Md. Code, Estates & Trusts § 7-101 (https://law.justia.com/codes/maryland/2022/estate-and-trusts/title-7/subtitle-1/section-7-101/).
Helpful Hints
- Keep detailed records and receipts for every payment and expense.
- Obtain professional appraisals for unique items like artwork, antiques, or jewelry.
- Review the decedent’s will and any codicils before distributing assets.
- Contact the Register of Wills for local filing requirements and deadlines.
- Communicate transparently with beneficiaries to avoid disputes.