Below you will find some of the most common issues dealing with the Maryland Estate Administration Process (Maryland Probate). Please contact our office with any additional questions or concerns you may have.

Maryland Probate and Maryland Probate Law

(Also known as Maryland Estate Administration)

Maryland law requires that the custodian of a document appearing to be the last Will (including Codicils, if any) of the decedent shall file it promptly with the Maryland Register of Wills in the county where the decedent was domiciled at the time of death, even if it is not to be offered for probate. When there are any assets in the decedent's name alone (including interests held as a tenant-in-common), they must be reported to the Register of Wills. A Personal Representative must be appointed by the Maryland Register of Wills or the Orphans' Court before disposing of any assets. When appointed, Letters of Administration will be issued to the Personal Representative.

SMALL ESTATES

Assets subject to administration valued at $30,000 or less ($50,000 if the spouse is the sole legatee or heir) (Done by the Maryland Probate Court)

(FOR PERSONS DYING ON OR AFTER JANUARY 1, 1998 ONLY, Small Estate value is determined by the fair market value of property less debts of record secured by the property, as of the date of death, to the extent that insurance benefits are not payable to the lien holder or secured party for secured debt.)

1.   Petition for Maryland Probate with Schedule B attached (Required appraisals must be submitted. The value of each item shall be fairly appraised as of the date of death. The Personal Representative may appraise corporate stocks listed on a national or regional exchange or over-the-counter securities, debts owed to the decedent, bank accounts, building or savings and loan association shares, and money. All other assets must be appraised by qualified disinterested appraisers. For persons dying on or after January 1, 1998, an alternate procedure is available for valuing real estate.)

2.   List of Interested Persons listing the names and addresses of those named in the Will, if any, and those who would inherit if there were no Will.

3.   Consent to Appointment of Personal Representative (Only applicable if the person named in the Will, if any, or the person entitled to appointment, is not applying.)

4.   Appointment of Resident Agent if petitioner is not a Maryland resident

5.   Proof of Execution of Will if Will lacks an attestation clause

6.   Information Report listing trusts, jointly held property, retirement and P.O.D. accounts, gifts made within two years of death, and other non-probate property

7.   Notice of Appointment ~ Notice to Creditors designating an approved newspaper for publication may be required for certain small estates. (Leave dates blank except date of death.)

8.   Bond (Required in certain small estates.)

9.   Paid funeral bill

10. Copy of death certificate (available from Division of Vital Records)

11. Commissions are not available under a Small Estate administration.

12. Petition for Maryland Probate with Schedule C attached A request for a Limited Order to locate the Assets or locate the Will requires the name, address and a statement as to why the limited order is necessary. The limited order will either allow the search for assets titled in the name of the decedent or the entrance of the safe deposit box in the presence of the Register of Wills or authorized deputy to locate the Maryland Will for delivery to the office.

Fees will be assessed according to the following schedule. If more than four Letters of Administration are required, an additional fee of $1.00 each will be charged. The estate shall pay the expense of mailing the Notice of Appointment. Fees shall be assessed on the value of the small estate at the following rates:

REGULAR ESTATES

Assets subject to administration in excess of $30,000 ($50,000 if the spouse is the sole legatee or heir) (Done by the Maryland Probate Court)

1.    Petition for Maryland Probate with Schedule A attached

2.    Notice of Appointment ~ Notice to Creditors designating an approved newspaper for publication (Leave dates blank except date of death.)

3.   Bond (Required by law.)*

4.   Consent to Appointment of Personal Representative (Only applicable if the person named in the Will, if any, or the person entitled to appointment, is not applying.)

5.   Appointment of Resident Agent if petitioner is not a Maryland resident

6.   Proof of Execution of Will if Will lacks attestation clause

7.   List of Interested Persons** (names and addresses of those named in the Will, if any, and those who would inherit if there were no Will as set forth in "How Will My Property Be Distributed If I Die Without A Will" )

8.   Copy of death certificate (available from Division of Vital Records)

*In Judicial Probate, this form must be filed immediately after the Court appoints a Personal Representative or a Special Administrator.

**Must be filed (a) within 20 days after appointment of a Personal Representative under Administrative Probate, or (b) at the time of filing a Petition for Judicial Probate.

It is the duty of every Personal Representative or Special Administrator of a regular estate to timely file the following documents in the Maryland Register of Wills Office:

Inventory and Information Report-WITHIN THREE MONTHS from date of appointment, a complete Inventory with Schedules and an Information Report (see #6 under Small Estates) along with the required appraisals, must be submitted. The value of each item shall be fairly appraised as of the date of death and stated in the Inventory. The Personal Representative may appraise corporate stocks listed on a national or regional exchange or over-the-counter securities, debts owed to the decedent, bank accounts, building or savings and loan association shares, and money. All other assets must be appraised by qualified disinterested appraisers. (For persons dying on or after January 1, 1998, an alternate procedure is available for valuing real estate.)

First Account-WITHIN NINE MONTHS from the date of appointment, the First Account must be filed. The Account must include the inventoried assets and all activity of the administration. All receipts, including income, sales and redemptions, disbursements, distributions, and value of assets remaining in the hands of the Personal Representative must be reported. Documentation of transactions is required.

Subsequent Accounts-MUST BE FILED as required by law until the estate is closed.

Fees-The following fees will be assessed at the time of filing the First Account. Additional fees will be assessed when filing each subsequent Account if the probate estate increases. The value of the probate estate is the sum of all Inventories, principal and income receipts, and increases realized on a disposition, less decreases realized (other than a distribution to beneficiaries). While the probate fee covers the cost of filing and recording documents in non-controversial estates, additional fees will be charged in controversial estates and for more than twelve Letters of Administration or two certified copies of the Will. The estate shall pay the expense of mailing the Notice of Appointment

MODIFIED ADMINISTRATION

For persons dying on or after October 1, 1997, Modified Administration is an option available to a Personal Representative within three months from the date of appointment. The process, which is to be completed within twelve months, is available only if all residuary legatees or heirs are exempt from inheritance tax or the decedent's personal representative and all trustees of any trusts are limited to the decedents Personal Representative, spouse and children, and if the estate is solvent and sufficient assets exist to satisfy all testamentary gifts. All of the stated persons must file a written consent. (Forms and reporting requirements are different from those noted above under Regular Estates.)

FOREIGN PERSONAL REPRESENTATIVE

When the decedent died domiciled other than in Maryland owning real property in Maryland at the time of death, the person appointed Personal Representative in that jurisdiction shall file an Application by Foreign Personal Representative to Set Inheritance Tax with the Register of Wills for the county where the largest part in value of the Maryland property is located. This form, which lists the necessary requirements for filing, may be obtained from any Register of Wills Office in Maryland. Probate fees, costs and inheritance taxes will be assessed by the Register.

Commencing on appointment until the time for filing claims has expired, the Personal Representative shall make a reasonably diligent effort to ascertain the names and addresses of the decedent's creditors and mail or otherwise deliver to them a copy of the Notice of Appointment-Notice to Creditors.

MARYLAND INHERITANCE TAXES

(Effective for persons dying on or after July 1, 2000. Different laws apply for persons dying prior to that date.)

Property subject to inheritance tax:

1.   Property passing by Will or under the laws of intestacy

2.   Any interest as a joint owner (other than a surviving spouse) in any real or personal property, including credit union, bank, or other financial institution accounts

3.   A material part of the decedent's property transferred by the decedent within two years of death (other than a bona fide sale) in the nature of a final disposition or distribution, including any transfer that resulted in joint ownership of property, if the transfer is made in contemplation of death

4.   Property over which the decedent retained any dominion at the time of death, including a beneficial interest, a power of revocation, or a power of appointment by Will or otherwise. This includes trusts, P.O.D. accounts, annuities or other public or private employee pension or benefit plans that are taxable for federal estate tax purposes, life estates and other interests less than absolute, in trust or otherwise

Exemptions from Maryland inheritance tax::

1.   Property that passes from a decedent to or for the use of a grandparent, parent, spouse, child or other lineal descendant, spouse of a child or other lineal descendant, stepparent, stepchild, brother or sister of the decedent, or a corporation if all of its stockholders consist of the surviving spouse, parents, stepparents, stepchildren, brothers, sisters, and lineal descendants of the decedent and spouses of the lineal descendants

2.   Life insurance benefits not payable to the estate of the insured

3.   Grave maintenance up to $500 passing under a Will for the perpetual upkeep of graves

4.   Property passing to a non-profit organization which is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code if incorporated in Maryland or if there is a reciprocal agreement with the jurisdiction where the organization has its principal office

5.   State, county or municipal corporations

6.   Property administered under a Small Estate proceeding

7.   Property passing to any one person not exceeding a total of $1,000

8.   Personal property of a non-resident with the exception of tangible property located in Maryland

9.   Income, including gains and losses, accrued on probate assets after the date of death of decedent (However, it is reportable to the State of Maryland as estate income.) (# 9 became effective January 1, 1998.)

Lineal Tax Rate applies to distributions to lineal heirs or legatees from a decedent dying prior to July 1, 2000, and may be obtained by contacting the Register of Wills Office.

Collateral Tax Rate of 10% applies to property passing to persons or organizations not identified as exempt. If the decedent died prior to July 1, 2000, brothers and sisters are included in collateral, however, their rate varies and is determined by the date of death.