What Steps Are Required to Locate, Inventory, and Distribute Estate Assets and Settle Debts in Maryland?

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Disclaimer: This article provides general information about Maryland probate procedures. It does not constitute legal advice.

Detailed Answer

1. Open the Estate in Orphans’ Court

To start, file a petition with the local Orphans’ Court. Under Maryland Code, Estates & Trusts § 7-101, you ask the court to appoint a personal representative (executor or administrator). Once approved, the court issues Letters of Administration or Letters Testamentary under § 7-201 (Link to § 7-201).

2. Locate and Secure Assets

The personal representative must identify all estate assets. Common tasks include:

  • Reviewing bank and investment statements
  • Checking real property records at the county land records office
  • Obtaining vehicle titles, life insurance policies, and retirement account information
  • Securing valuable personal property such as jewelry, artwork, or collectibles

3. Inventory and Appraise Estate Property

Within three months of appointment, file an inventory and appraisal with the Orphans’ Court per § 7-202 (Link to § 7-202). This document lists all assets and their fair market values as of the decedent’s date of death.

4. Notify Creditors and Review Claims

Publish a notice to creditors in a local newspaper under § 7-301 (Link to § 7-301). Creditors have six months from the notice date to file claims against the estate. Review each claim and either admit or contest it.

5. Pay Debts, Taxes, and Expenses

Under § 7-302, pay valid debts in priority order:

  1. Funeral and administration expenses
  2. Taxes (estate and income)
  3. Judgment debts
  4. Other unsecured claims

File final income tax returns for the decedent and any required estate tax returns.

6. Distribute Remaining Assets

After debts and expenses, distribute the residue according to the will or, if there’s no will, per Maryland’s intestacy laws (§ 7-201 et seq.). For intestate estates, see § 7-201 and following sections. Beneficiaries receive property in kind or cash distributions as appropriate.

7. Close the Estate

Prepare a final accounting for the court showing all receipts, disbursements, and distributions. Submit it for approval and request discharge of the personal representative.

Helpful Hints

  • Keep detailed records of all transactions and communications.
  • Obtain professional appraisals for high-value assets.
  • Check for overlooked assets: digital accounts, safety deposit boxes, and business interests.
  • Communicate proactively with beneficiaries to manage expectations.
  • Consult a probate attorney if you encounter complex assets or disputed claims.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.