General Overview of Estate Administration in Maryland

Introduction: Decedents with a Will & without a Will

Estate administration is a complex process which involves handling a decedent’s debts and assets. When a person passes away, that person’s “estate” – i.e. the totality of his or her debts and assets – must be disposed of, and Maryland, like other jurisdictions, has preestablished rules which govern how estates are handled. When a person passes away, the primary concern which arises is whether that person had a viable will or not. A “viable will” is a will which meets all the formal criteria which apply to these instruments (i.e. properly signed, properly witnessed, adequate specificity, etc.). If a decedent has a viable will, this simplifies the estate administration process, because the will itself provides full instructions for handling the estate. If a person passes away without a will, a dies “intestate,” this generally complicates matters.

Filing a Will with the “Registry of Wills” / Orphan’s Court

When a decedent passes away with a viable will, that will must be filed with either the “Registry of Wills” or the “Orphan’s Court.” Importantly, a will has no power or significance until it be submitted to probate. Uncontested wills are submitted to the Registry of Wills, and contested wills are submitted to the Orphan’s Court. The Registry of Wills is Maryland’s “administrative probate,” and the Orphan’s Court is Maryland’s “judicial probate.” A will might be contested for any number of reasons, but frequently wills are contested when there is uncertainty regarding the identity of beneficiaries. A potential beneficiary might contest a will, for example, if that person believes that he or she was intended to be put into the will but the language of the will isn’t sufficiently clear.

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Appointment of a Personal Representative

After a “petition for probate” has been filed with either the Registry of Wills or the Orphan’s Court, the next step in the estate administration process is the appointment of a “personal representative.” The personal representative is the individual put in charge of overseeing the administration of the estate. Personal representatives are appointed based on preestablished rules. As a rule, anyone who is named as a personal representative in a will has first priority. After this, the following “chain of priority” applies: (1) if no will exists, surviving spouses or surviving children, (2) “residuary legatees,” or those who will receive the remainder of the estate, (3) if a will exists, any surviving children, (4) any other living relatives, and (5) the largest creditor, or any other individual named in a will.

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After the personal representative has been officially appointed, the probate court will grant him or her a “letter of administration.” This document gives the representative the capacity to distribute the assets of the estate.

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Payment of Debts & Distribution of Assets to Beneficiaries

After the appointment of the personal representative, the representative first pays the debts of the estate to creditors, and then distributes the remaining assets of the estate to beneficiaries. If the decedent has a will, then the distribution of the assets will occur according to the specific wishes of the decedent. If the decedent passes away intestate, then the assets will be distributed based on preestablished rules (Maryland’s “intestacy laws”). After all this has been done, the personal representative reports back to the court with a summary of what has occurred, and then the estate is officially closed.

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Small & Regular Estates

In the State of Maryland, an estate is either considered “small” or “regular,” and these distinctions are based on the value of the estate. Estates less than $50,000 are considered small, and anything above $50,000 is considered regular. The only exception is when an estate has a spouse as the sole heir, and in that case an estate less than $100,000 is considered small.

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Contact the Murphy Law Firm for More Information

If you want to learn more about estate administration, wills, trusts, or any other estate planning topic, reach out to one of the estate planning attorneys at the Murphy Law Firm today by calling 240-219-5243.