Disclaimer: This article provides general information only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
Detailed Answer
When someone passes away in Maryland, the personal representative (also called the executor or administrator) must follow formal probate procedures to ensure estate expenses and creditor claims are addressed before distributing assets to heirs. Key steps include:
1. Open Probate with the Orphans’ Court
The personal representative files a petition in the Orphans’ Court of the county where the decedent lived. The court appoints the representative and issues Letters of Administration or a Will’s Grant of Probate. This court supervision protects heirs and creditors alike.
2. Inventory and Appraisement
Within the first 90 days, the representative must file an inventory and appraisement of estate assets, as required by Md. Est. & Trusts § 7-102. This document lists real and personal property values to establish the estate’s worth.
3. Notice to Creditors
Maryland law requires publication of a creditor notice in a local newspaper and mailed notice to known creditors. The notice period is at least six months from the date of the first publication. Creditors must submit claims in writing by the deadline. See Md. Est. & Trusts § 7-201 and § 7-103.
4. Review and Resolve Claims
The representative reviews submitted claims and either approves or contests them. Valid claims take priority before any distribution. Disputed claims may require court hearings.
5. Payment of Expenses and Debts
Maryland law sets a payment hierarchy: funeral and administration expenses come first, followed by taxes and debts. Remaining valid creditor claims are paid next. The statute outlining this priority is Md. Est. & Trusts § 7-403. Only after satisfying these obligations can the representative distribute any residual assets to heirs.
6. Final Accounting and Distribution
Once debts and expenses are paid, the representative files a petition for final distribution or a summary settlement. The Orphans’ Court reviews the accounting for accuracy and authorizes distribution of the remaining assets to heirs under the will or Maryland’s intestacy laws. See Md. Est. & Trusts § 8-102.
Helpful Hints
- Keep detailed records of all expenses and creditor communications.
- Meet all statutory deadlines for inventory and creditor notices to avoid personal liability.
- Consider publishing notices in multiple newspapers if unknown creditors may exist.
- Seek professional advice on tax obligations and potential estate taxes.
- File a clear final accounting to speed up court approval and distribution.