After someone passes away, the court will appoint a person to administer the estate through the probate process. This person was most often selected by the decedent to serve by naming him or her as executor or personal representative in the will. Many who are chosen to serve in this role may initially become overwhelmed by all that it involves. Hiring an estate administration attorney to help navigate the process helps tremendously. Below are the 5 main steps that an administrator needs to take:
Step 1: Getting Started
An estate file is opened when the administrator files the decedent’s last will and testament along with any codicils with the court situated in the county of the decedent’s domicile. Along with this initial filing, the administrator should complete a Petition for Administration form and include a Schedule A which provides an estimate of the estate’s assets and liabilities.
Once the probate judge appoints the administrator, a Notice of Appointment should run in the local newspaper for three weeks. This gives creditors notice.
Step 2: Handling Claims
The administrator will need to diligently search for any claims that creditors may have against the estate. The creditors should be given notice either by hand-delivery or through certified mail. Give the creditors two months from the time they receive notice or six months from the decedent’s death, whichever is shorter, to file a claim against the estate.
Step 3: Inventories and Reports
The administrator must complete and file an Inventory and an Information Report. The Inventory separates the decedent’s assets in categories by sole ownership or joint ownership. Each item listed must provide a detailed description of its fair market value and any loans or encumbrances. Some items may need a professional appraisal.
The Information Report discloses details about items that may be considered non-probate. It provides the court will information on assets such as life insurance policies, jointly-owned properties and accounts that list a beneficiary.
The administrator is also responsible for filing state and federal income tax returns as well as providing the court with an accurate accounting of the estate. The Account Report will list the value of the assets named in the Inventory, show any income and receipts received during the administration process, show payments to creditors, show any other disbursements and reflect any changes in assets.
Step 4: Paying Yourself and the Estate Attorney
As you can see from steps 1-3, administering an estate is a lot of work. Maryland law provides that the administrator and the estate administration attorney get reasonable compensation. The compensation is calculated as a percentage of the estate. A petition for payment is filed and notice given to all interested parties.
Step 5: Closing the Estate
After the court receives and approves the Final Accounting, the estate sits “on hold” for 20 days. If no exceptions are made during the hold period, then the court’s approval becomes final. The administrator can then make the final distributions to beneficiaries and must do so within 30 days. The estate is then considered closed.
For assistance in administering the estate of a loved one in Maryland, please contact the experienced estate administration attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
