When someone you love passes away and the funeral services are complete, you may start the next steps in squaring away financial and legal issues. This is the process of probate or estate administration. You cannot simply go and take personal property, real property or money from a deceased’s bank account. There is a strict legal procedure for how all of this is handled so that it is done fairly and according to the wishes of the person who passed away.
Most people leave behind an estate when they pass away. The estate consists of all assets owned at the time of death. Probate is the legal process that identifies, locates, values and distributes these assets. If the person died leaving behind a valid will, then that is the first step in determining what happens to these assets. The person named as the executor will open an estate account in probate court. If the deceased did not have a valid will in place, then the probate court will appoint a personal representative to oversee the intestate estate. Maryland has specific laws regarding intestate succession that dictate how the property will be distributed.
Either way, the probate process then proceeds down the following path, which can take a considerable amount of time:
Step 1:Probate is initiated by filing the petition along with a certified copy of the death certificate and the Last Will and Testament if one exists.
Step 2:The personal representative or executor will begin to inventory the assets while also making sure they are properly maintained, insured and secured throughout the process.
Step 3:The personal representative or executor will notify all potential creditors and give them the opportunity to file a valid claim for payment against the estate. All valid claims will be paid prior to any beneficiary receiving an inheritance. Maryland law sets out a list of priority for claims and they must be paid in the correct order.
Step 4:If there are any disputes regarding claims, validity of the will, sound mind of the deceased when executing the will or other types of issues, those will have to be litigated before moving forward with probate. Depending on the court schedule and nature of the dispute, this type of estate litigation can go on for months or years.
Step 5:The personal representative or executor is responsible for filing an estate tax return and paying all applicable taxes. This may potentially include estate and gift taxes as well as capital gains and ordinary income taxes.
Step 6:Once the final accounting is approved by the court, final distribution of remaining assets can be distributed to the named beneficiaries under the will or to the beneficiaries designated by the laws of intestate succession.
There is no specific timeframe for many of the above-mentioned steps. Even the simplest estates in Maryland take at least 8 months, most often longer. If you are the beneficiary of the estate of a loved one, keep in mind that it may be a considerable amount of time before you actually receive your inheritance. You cannot simply start taking items or money that belonged to the deceased. For more information on probate and keeping it streamlined and on track, 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.
