How unauthorized charges to a parent’s estate are handled in Maryland probate
Disclaimer: This is general information and not legal advice. It explains how the Maryland probate system typically deals with unauthorized charges against a decedent’s assets. For advice about a specific situation, consult a Maryland probate or elder-law attorney.
Quick answer
Unauthorized charges (fraudulent withdrawals, improper use of funds, or charges made by someone without authority) reduce the assets available to pay debts and distribute to heirs. In Maryland, these issues are addressed during probate through the personal representative’s inventory and accounting duties and through court oversight in the Orphans’ Court. Family members and beneficiaries can challenge actions by the personal representative, seek a surcharge (money owed by the fiduciary for improper acts), ask for removal of the personal representative, and/or pursue civil or criminal claims against the person who made the unauthorized charges.
Detailed answer — step-by-step under Maryland procedures
1. Identify whether the charges occurred before or after death
– Charges made while the parent was alive may be theft, undue influence, or financial exploitation and can be pursued against the wrongdoer personally or as a creditor claim against the estate if the funds were withdrawn from the decedent’s accounts.
– Charges posted after death are usually improper distributions from the estate (unless made by the duly-appointed personal representative with authority). Either way, the loss reduces estate assets and must be addressed in probate.
2. Who manages these issues during probate?
Maryland probate is supervised by the Register of Wills and, for contested matters, the Orphans’ Court. The personal representative (PR, sometimes called executor or administrator) controls estate assets, collects assets, pays valid debts, and files inventories and accountings that reflect the estate’s condition. Beneficiaries and interested persons have the right to review accountings and object to improper transactions.
For general information from the Maryland courts about estate administration and the Register of Wills, see: Maryland Register of Wills and Maryland Orphans’ Court.
3. Immediate practical steps to take
- Preserve records: save bank statements, transaction records, canceled checks, credit-card statements, emails, texts, photos, and any bills showing unauthorized charges.
- Notify the personal representative, the bank, and credit-card companies in writing, asking them to freeze disputed transactions and preserve logs.
- Contact the Register of Wills or the local Orphans’ Court to learn whether a probate estate has been opened and who the PR is.
- Consider contacting the police or state prosecutors if there is clear evidence of theft or fraud. The Maryland Attorney General and local state’s attorney offices handle elder financial exploitation complaints; see Maryland Office of the Attorney General.
4. How the probate process examines and corrects improper charges
– Inventory: The personal representative must identify and list estate assets. If money is missing, the inventory should reflect actual cash and account balances. If the PR fails to account for missing funds, interested persons can object.
– Accounting and objections: The PR will file accountings (periodic or final) that show receipts, disbursements, and distributions. Beneficiaries and interested persons may file exceptions or objections to the accounting in the Orphans’ Court. If the accounting shows unauthorized disbursements, the court can require repayment (a surcharge), order restitution, or require the PR to correct accounts.
– Removal or surcharge of a personal representative: If the PR caused or allowed unauthorized charges (by acting improperly, negligently, or in bad faith), the Orphans’ Court can remove the PR and order the PR (or any person who improperly took funds) to repay the estate. This is known as a surcharge action: the court holds the fiduciary personally responsible for losses resulting from their misconduct.
5. Civil and criminal remedies against the person who made unauthorized charges
– Civil claims: The estate (through the personal representative), beneficiaries, or heirs can bring a civil lawsuit against a person who stole or misappropriated estate assets to recover money or property.
– Criminal prosecution: If the conduct was theft, fraud, or exploitation, report the matter to local police or the state’s attorney. Prosecutors may pursue criminal charges separate from probate remedies.
6. Typical outcomes
– Recovery by estate: If the court finds misconduct, it may order repayment or place a lien on the wrongdoer’s property.
– Adjustment of distributions: If unauthorized charges permanently reduced estate assets, beneficiaries may receive smaller distributions, and the court may apportion losses among heirs based on fault or available remedies.
7. Time sensitivity and deadlines
Act promptly. Evidence disappears, witnesses forget, and financial institutions have limited retention. Probate accountings and creditor windows are subject to deadlines; while specific deadlines depend on the case facts and whether probate has been opened, waiting too long can reduce remedy options. Contact the Register of Wills or an attorney quickly to learn local deadlines and filing requirements.
Hypothetical example
Imagine a parent dies; the family discovers that a caregiver made $25,000 in ATM withdrawals from the parent’s account in the weeks after death. The PR files an inventory showing the account balance lower than expected. Beneficiaries ask the PR for an accounting. The PR either identifies the withdrawals as improper and sues the caregiver to recover funds, or — if the PR fails to act — beneficiaries file exceptions with the Orphans’ Court asking for a surcharge against the PR and for the court to order the caregiver to repay the estate. The family also reports the transactions to police for potential criminal charges.
When to involve law enforcement
Report clear, intentional theft or fraud to local police or the state’s attorney. Criminal investigations and prosecutions can deter wrongdoing and may lead to restitution orders that help the estate. For suspected elder financial exploitation you can contact the Maryland Attorney General’s office or local prosecutors; see Maryland Attorney General.
How to raise concerns in probate court
- Obtain a copy of the estate inventory and any accountings filed with the Register of Wills.
- File a written exception or objection with the Register of Wills / Orphans’ Court, explaining the unauthorized charges and attaching evidence.
- Ask the court for relief: surcharge, removal of the personal representative, an order compelling repayment, or a directive to the PR to pursue recovery against the wrongdoer.
Helpful Hints
- Start collecting documents immediately: statements, receipts, emails, and names of people with knowledge.
- Communicate in writing with the PR and banks so there is a record of your objections.
- Preserve original documents and copies of digital records (screenshots, downloads).
- Ask the Register of Wills for copies of filings (inventory, letters of administration/executor, accountings).
- If the PR is uncooperative or appears culpable, consult a Maryland probate attorney about filing exceptions or a surcharge action in Orphans’ Court.
- If you suspect a crime, report it to police and to the state’s attorney’s office as soon as possible.
- Keep family communications calm and documented; hostile exchanges can complicate court disputes.
- Understand that even if funds cannot be fully recovered, the court can hold the responsible person accountable and may issue restitution or civil judgments against them.
Where to find help in Maryland
- Register of Wills and Orphans’ Court information — Maryland Courts: https://www.mdcourts.gov/register and https://www.mdcourts.gov/orphanscourt.
- Maryland Attorney General (consumer protection and elder fraud resources): https://www.marylandattorneygeneral.gov.
- Consider consulting a Maryland probate or elder-law attorney for guidance on filing exceptions, bringing a surcharge action, or pursuing civil/criminal remedies.
If you want, provide brief facts about the transactions you found (dates, amounts, who made the charges, whether probate has been opened), and I can outline specific next steps you can take in Maryland.