Detailed Answer
When a decedent’s real property sells during probate in Maryland, the personal representative (PR) oversees proceeds and final distribution. Heirs must complete specific forms to authorize and direct distribution of those sale proceeds. Below are the most common documents under Maryland law.
1. Receipt and Release
After the court approves the PR’s final account (Estates & Trusts § 7-502), each heir signs a Receipt and Release. This form confirms the heir has received their share and releases the PR from further liability regarding distribution.
2. Petition for Allowance of Final Account and for Discharge
The PR files a petition under Estates & Trusts § 7-502 to obtain court approval of sales proceeds distribution. Heirs do not sign the petition itself, but they must approve the distribution plan before the court authorizes release.
3. Renunciation of Right to Act
If an heir prefers not to serve as PR or decline a share, they use a Renunciation of Right to Act under Estates & Trusts § 5-301. Renunciation filed before probate shifts duties and interest to remaining heirs.
4. Qualified Disclaimer
An heir may refuse all or part of an inheritance via a Qualified Disclaimer under Estates & Trusts § 10-209. The disclaimer must be in writing, signed within nine months of the decedent’s death, and filed with the Register of Wills.
5. Funds Direction Form
Many fiduciaries provide a Funds Direction Form or wire instructions so heirs can specify bank accounts or payees. While not statutorily mandated, this form speeds secure transfer of proceeds.
Helpful Hints
- Confirm which forms the local Register of Wills office requires.
- Obtain and review Maryland’s probate forms at the Register of Wills website.
- Sign the Receipt and Release only after verifying the amount and tax withholdings.
- File any Renunciation or Disclaimer within statutory deadlines (§ 10-209).
- Keep copies of all signed forms and court orders for your records.
- Consult a probate attorney if the estate has complex assets or potential creditor claims.